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You cannot legally host porn that would get an 'R' rating (insertion etc) in Australia.
The Australian Broadcasting Authority regulates the industry, and only acts upon a complaint recieved. Usually this action is to request that the material be taken down. Im not aware of any cases where someone has been prosecuted for hosting porn in australia.
If you host offshore then you are still legally responsible and can be prosecuted as the offence of you uploading to a server occured in Australia.
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