What this means is that it is now possible for CASA to ramp check fuel quantities and furthermore pilots are required to incriminate themselves.
So landing minus a litre of fixed reserve can result in a criminal conviction that will disbar you from entering the USA and probably other places as well.
The net result I predict will be an increase in fuel exhaustion events if this regulation is enacted in its current form.
My reason is that I am quite sure that some fringe dwellers in the aviation community will simply make up new dipsticks with a "litigation calibration offset" of say, 20 litres. They then become the only bloke who knows what the real fuel state is, but the "dip" figure will always satisfy a nosey FOI.
This works well until some poor bastard buys or borrows the aircraft.