Have found out a little more since my question. The radio show went into the some details about this. They are able to force you to use a different state app, however the privacy act section 94 ZD appears to attempt to cancel out Section 109 of the Commonwealth Constitution. So if you were to raise a question under the FOI asking them what instrument does the Commonwealth rely upon to pass Section 94ZD of the Privacy Act? This should solve this issue and the act should be changed so that we can refuse to scan an app.
I have raised the question – encourage you to do the same. Have had no response in almost 2 weeks now – raised the question via email. Lets bombard them.
If a business refuses me, I am trying to go elsewhere. Its difficult though.