Will this law pass??...yeah, probably knowing Australia.
Will the authorities enforce this to the point where they are busting people on the streets with ipods??...No chance.
it's not a question of busting ppl on the street - that won't happen. however, copyright owners haven't been able to make any prosecutions in australia until now; partly because of the difficulty in proving the intentions of the person charged with copyright 'theft'. what this law does is establishes guilt, through strict liability, if someone is a: charged with copyright theft; and b: possesses one of the devices trapped by the poorly drafted legislation.
assuming it passes - and there's no reason to think it won't - the next test will be when copyright owners take their first action against an infringer. if they pick a really obvious case - say someone uploading bucketloads of protected content, or an active dvd bootlegger, then they'll get themselves a precedent and we'll all be fucked (well, i won't, but i won't be returning to aust either). if they pick a stupid case - some kid with some ripped songs - then the public (and possibly judicial) outrage will be such that they'll never be able to enforce it.
phil-the-arsehole-ruddock claimed in one of the articles i read that the intention of the criminal sanctions in the bill were to go after those ppl running dvd-cloning factories, not individual users, but i can safely say i've never believed a word ruddock has ever uttered. given that the large copyright holders have a: never succeeded in an individual prosecution in aust; b: want to run just those sorts of private prosecutions (as they do in the US); c: will be given the power to do so under this piece of legislation, it strikes me as unlikely that they'll wait very long before they test those powers in court.