LexAir is correct, but CASA will not do anything that:
(a) Reduces its power or cede power to someone else.
(b) Increases its accountability or perceived responsibility.
(c) Reduces its opportunity to obtain revenue through fees.
(d) Reduces career opportunities for staff.
Thus, the use of simulators for this type of GA testing will be complexifide to add yet another layer of fees, administrative costs and approvals by CASA. Simplification, streamlining and the cutting of red tape are anathema to CASA.
CASA will probably do this by dreaming up a set of simulator requirements that are uniquely Australian and prohibitively expensive to satisfy.
Didn't the RAAF (RAF?) call this type of dangerous training "practicing bleeding?".