Honestly that would seem like the most common sense idea that anyone would/could draw up from this, and for the most part I think this is what the gov is trying to do.
I think there's an unstated side effect from the Online Safety Act which nobody seems to be talking about - using the new powers to effectively censor Palestinian protests online.
You can read about it some more: https://www.openrightsgroup.org/press-releases/human-rights-defenders-raise-concerns-that-online-safety-act-will-lead-to-censorship-of-palestine-protest/
I've genuinely never felt so depressed about voting in this government in my entire life. Actual gross dystopian bullshit.