So... I've been looking into this a fair bit to determine what our rights are in regards to importing and possessing Refused Classification material.

I have provided some information and links to sources below.

Is "Refused Classification" material illegal to access/possess?

Source

Generally, no, but with some exceptions. Refused Classification ("RC") material is:

* legal to possess for private/personal purposes in all States/Territories except in Western Australia and in 'prescribed areas' of the Northern Territory (see Classification Enforcement Acts); and
* legal to access/obtain using the Internet in all States/Territories except Western Australia and the Northern Territory, (see Classification Enforcement Acts - sections titled "Computer Services" in W.A. and N.T. Acts);
* unless the material falls within the sub-set of RC that is defined as child pornography/abuse/exploitation material in the C'th Criminal Code, or in the relevant State's/Territory's Criminal Code/Crimes Act and/or in their Classification Enforcement Acts, etc.

Each state differently defines who is allowed to posess Refused Classification material.

Source

In Queensland, you can posess RC games if you aren’t going to sell them or exhibit it in a public place.

In New South Wales, you can posess RC games if you aren’t going to sell them. Part 4 of the act defines many additional clauses, including not exhibiting RC material to minors or keeping RC material in a place where other material is sold. The safest bet is to keep it at home and play it yourself.

In Victoria, you can posess RC games if you aren’t going to sell them. Like the New South Wales legislation, Part 4 defines many additional clauses.

In South Australia, you can posess RC games if you aren’t going to sell them. Part 6 contains additional clauses.

In Tasmania, you cannot sell or deliver RC computer games. However, as noted earlier, the postal service is exempt from this law in the Commonwealth act. The Tasmanian act does not contradict this in any way.

In Western Australia, it is explicitly forbidden to posess or copy RC computer games. Sorry, guys, you’ve got the short straw.

In the Northern Territory, you cannot posess or hold a RC computer game at premeses where games are exhibited or sold. A further clause that interests me is that you can’t posess a game likely to be refused classification if you intend on publishing it.

As you can see, for the average person in states and territories excepting Western Australia, it is not illegal to posess games that have been refused classification. However, there is a customs regulation that defines games as unsuitable for people under 18 as an objectionable good that is subject to prohibition from importing. Whether digital delivery of computer games is covered by this law is currently unclear.

So to summarise, you can own it but you can't import it