"That is, the government can force Apple or Google to create a backdoor for the government to decrypt your messages."
What happens if Apple and Google's response is to take all their balls and go home, and 25 million Australians wake up to the following message on their iPhones, iPads, iMacs, Chromebooks, Android devices, etc:
"Error 451. The requested resource is not available due to an attempt by the Australian government to enable the installation of secret surveillance on our customers. We have withdrawn all services from Australia until this issue is resolved."
No apple/google maps, no apple/google email, no apple/google search, no apple/google app stores, no youtube, nada. Nothing that needs to talk to an Apple or Google server works anymore. What a wonderful Christmas present for Aussie voters...