Sunny,
Victoria can (unfortunately, and so can every other state) make certain rules for aviation.
The Commonwealth power is very limited legally, based on the treaty making powers, most recently the High Court "Franklin Dam" case.
In short, aviation is states rights, a very messy situation, with a long at at times very amusing history --- Look up the two Goya Henry cases.
Reg Ansett, among others, was a prolific litigator on the subject.
Also, S92 can come into it, remember East-West operating Sydney-Melbourne via Albury.
In Queensland, aircraft are caught up in motor traffic regulation, via the definition of a "vehicle" in the Queensland Crime Act.
Tootle pip!!