> What makes the Australian government thinks that just because encryption without backdoors will be illegal that criminals won't continue to use unbreakable encryption and break the law?
Nothing, they don't really care. What's important to them is to have that shiny badge saying "I am the one who singlehandedly saved our country from chaos - It's me, adore me, vote for me". Reality on the terrain isn't important, more so since actual crime fighting (as opposed to gesture politics) is actually someone else's problem.