This should not be a discussion about Australia or any government in particular. The discussion should be about the importance of not supporting closed source.
I believe in open-source. This just proves once again that closed source cannot be trusted. I would never use 1Password or any of it's variants. It still amazes me that so many people are sending their most precious secrets to a commercial companies' cloud server.
I only use Keepass open source password manager, every day for over 9 years now, and I'm really thankful to the devs that build and maintain this nice piece of software.