This is very close to a conspiracy theory, Creampuff and as such I am loathe to subscribe to it.
I’m comforted by the fact that the majority of the Senate Committee subscribe to the same theory, which isn’t a conspiracy theory. But I see you’ve learned Politics 102: Discredit by innuendo. Well done.
As to the standards to be applied to aerial ambulance operations, it’s simply one example of the broader classifications of operations quagmire that CASA is not, and never will be, competent to fix.
Classification of operations is, unavoidably, a balance between risk, cost and availability of service. Classification of operations is therefore a quintessentially political decision. CASA is not competent to decide where that balance is to be set, and governments don’t want to take the responsibility. That’s why the regulatory quagmire has continued to be a stinking mess for decades.