There's a federal law that states you are not allowed to tamper with or remove *any* fitted emission control devices and the fine apparently *starts* at $25,000.
I'm trying to discover more about this now, I'll edit the post to update it. Searching through Austlii database can be painful sometimes.
Here's one piece of legislation that could cause trouble.
Motor Vehicles Standards Act 1989
Part 3, Division 2, Section 13A
(1) Subject to subsection (3), a person must not do an act that results in
the modification of a standard vehicle in a way that makes it nonstandard.
Penalty: 120 penalty units.
Subsection 3 is about getting written permission directly from the minister.
1 penalty unit = $110, so the fine for this breach is $13,200 on its own. I'll find more later.
Just as an aside, this section of the ADR actually applies to any vehicle modifications, including tyres that go outside the size range specified, headlight wattage and colour, tail light fixtures, rear-facing lighting, number of forward-facing white lights - the list goes on.
If they want to get really nasty with you, the book they can throw at you is extensive and heavy.
The search continues for specific emission control legislation. It's a big read.