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Ok, here's the low-down - keep the DNS and the hosting off shore.
If you don't, you *will* get owned. Australia has tight regulations, and it will most certainly be an open/shut case, in the favour of the other party.
I've spoken to the owner of teens.com.au, who actually set the precedent for the above 'offshore' ruling (thanks!) so contact him if you need more info.
As an incidental, if you're shooting content, it's entirely state dependant. QLD, for example, doesn't have much / any legal precedent for shooting content, especially of the X nature (as x is banned in QLD) - so if you're going to do it, make sure you have all your bases covered.
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