The intention isn't to censor, the government is using the censorship (also known as 'protection') furphy to get it's foot in the door of Australian ISPs.
What this is really about is the first step towards putting a stop to the downloading of TV shows. The web censorship hype has always had the monitoring of downloads riding on it's coat-tails.
Aussies downloading prime-time TV is hitting the hip-pockets of some very influential people, the television station that backed Rudd from the beginning by giving him free air time has recently announced that they will be entering the ISP business, providing pay-per-download via the web.
Odds-on Conroy will end up being thrown to the wolves, word is that he's been given this job as a way of discrediting him and getting him out of the political scene (he is something of an idiot, so no loss there), the censorship thing will die a natural death and everyone will applaud a victory for democracy. In the meantime, the government will have done it's tests and internet users will get fines for copyright violations as automagically as those for traffic offenses, pay-per-download via the good folks at Channel 7 will be there as a convenient legal alternative.