That is not at all true or what the ACCC says. The ACCC says:
“If your travel is cancelled due to government restrictions, this impacts your rights under the consumer guarantees. However, you may also have other remedies outside of the Australian Consumer Law.”
All it means is that it is no longer black and white.
But it doesn’t mean that air carriers, hotels, cruises etc. all get to keep cash for the product they never deliver. It’s complicated now.
More than happy for you to donate your Bali flights but if i was in the example you give, I would be arguing that no government restriction prevent an airline flying to Bali. Certain people are prevented from flying and if a pax had to cancel because of that, then yes a credit is appropriate.
However that flight can still go ahead and a contract becoming unprofitable is not a contractual remedy to cancel that contract and keep the consideration.