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All very understandable but international law clearly states that you can’t prevent your own citizens from entering your country.

https://en.m.wikipedia.org/wiki/Right_of_return

If Australia wants to implement quarantines, fine. If Australia wants to appear tough and make an example of people by denying them their rights, not fine.

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I remember India itself violating this as part of pandemic related restrictions last year, when they tried to restrict entry of Indians who were abroad back to India.

The problem with international law is of course that there is no way to enforce it, the states are sovereign. But a state can’t violate them too egregiously and still pretend to be a first world lawful state.

Legally is allowing them to return and fining and imprisoning them the same as not allowing them to return?

Yes, because you're effectively being punished for exercising your right.

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