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I thought I read that allowing other Aussies to play there broke some law.
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This is correct.
Source:
http://www.dcita.gov.au/communicatio...mbling/summary
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It's actually illegal, as I understand it, for Aussies to play online at all. Most sites just ignore that. They might have it in their ToS, but they don't actually enforce it.
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Then you don't understand it, because this is not what the law says.
Check the source I quoted above.
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plus we're not taxed
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I disagree. There's a great thread discussing this (with people from both sides) here:
http://forumserver.twoplustwo.com/sh...page=&vc=1
This is not legal advice; see a lawyer if you want legal advice