Before we get too excited about the Oz plans, we need to remember that in Europe, it is mandatory (or 'quasi-mandatory in some weasel cases) to filter:
 kiddie porn;
 'extreme' porn including hentai (cartoon)-porn;
 'terrorist' websites;
 video that is 'broadcast-like';
 suicide websites in Nordic countries.
So what's the difference? The handy cut-out-and-keep website details what's going on, and notes that the Australian Senate is not controlled by government, nor will it be until after the next election, so that the law won't be introduced for a year, and is not intended to be enforced until a year after its enacted, which is not before 2012.
So calm down, dear, its electioneering. Fear Mandelson (and the fast-rising Andy Burnham), not Oz.