This regulation of NSW, Australia considers rooted devices with extra non-Google/non-Apple approved security features such as a duress/wipe PIN (a standard feature of GrapheneOS[2]) as a "dedicated encrypted criminal communication device". How the device is being used doesn't matter. It's how it _could_ be used.
[1] https://classic.austlii.edu.au/au/legis/nsw/consol_act/ca190...
Basically, they're not really setting up for a blanket ban on personal security features, that interpretation is obviously catastrophizing. Not that there aren't hamfisted laws somewhere like this, but NSWs implementation seems OK I guess