It just means whenever I look for hosting, internet services etc it means I'm already deliberately using services not based in Aus which I think will be a long term trend and detriment to the technology industry here. Just adding latency to any service as it has an extra few hops through the filter is a cost I wouldn't expect customers to bare.
The impact on Australia's technical reputation I think is the major thing. Previously travelling a bit and being involved in a US-AUS acquisition; Australians tended to be pretty well respected technologically, and with this, I fear that we're going to have that reputation quashed and look like luddites.
I plan on writing a series of letters to the ministers and chronicling the results if anyone's interested. I also encourage any other fellow aussies to do the same. Here's some good tips on writing letters to parliamentarians and get a good chance of reply http://www.efa.org.au/Campaigns/lobby.html and this one for the more subversive http://www.crikey.com.au/2009/12/16/dont-waste-your-time-was...