I've got several .com.au domains associated with porn - all owned by legally registered businesses with corresponding business names and the websites are hosted in the US, all perfectly legal. They really help when it comes to being higher placed on Australian search engines.
It is an offence to produce unclassifiable content material such as porn movies and photos. All videos etc here have to be classified as G, PG, M, MA or R18+ - if it can't fit into one of those categories then you're breaking the law. They took Abby Winters on and drove them off-shore - however I do wonder how the Aussie camgirls on MFC and the like get away with it. Some of them produce porn vids etc and sell sex shows thru their websites and skype - maybe I should be buying content and overdubbing Aussie accents into the audio! Hmmmm!
