Seriously though anyone got a clue, given the nature of the report as to
what, if anything ICAO can or is allowed to do???
I'll take a stab at it. ICAO is not a regulator so does not have any real power to enforce anything in Australian Aviation. They can audit and do this
but at the end of the day they are a diplomatic instrument. As Australia was one of the original signatories to the Chicago Convention and having a seat on the Security Council then it would also be highly embarrassing to everyone if Australia was held up to international ridicule.
On the other hand the EU could blacklist Australia but once again given our assistance to NATO in Afghanistan, unlikely. Remembering that aviation policy has been an instrument of State diplomacy and politics for years. The FAA could downgrade us but that would not be an overnight exercise. It would require another audit and I doubt that the FAA would accept a few "we will do better" assurances from CASA. There would also be diplomatic toing and froing as whatever Government finally realises the consequences of the true state of aviation oversight in this country.
So in effect it is the overseas agencies who become ICAO's policemen, but they are more likely to issue warnings rather than on-the-spot fines or a ride in the back of the Divvy van.