To use a still of any capacity to distil alcohol such as spirits, you must have an excise manufacturer licence.
Severe penalties apply for manufacturing spirits without an excise manufacturer licence.[1]
Although, in practice, I can’t say I’ve ever heard of a case of someone being fined for making spirits at home, and you’d probably have to repeatedly offend that particular law in order to be sentenced to a term of imprisonment.
1. https://www.ato.gov.au/Business/Excise-and-excise-equivalent...