Most Lemmy admins are just trying to do their best. If the Aussie government publishes realistic guidelines for small services then many instances will probably make an effort to follow them. How enforceable it is is not the point.
What “Lemmy” will be arguing this and where, though?
“Lemmy” as a thought experiment, not Lemmy with a lawyer in court. Devs wouldn’t be affected, it would apply to the people running the service (I.e instance admins)