It's completely understandable for the government to give Australian based airlines an advantage after the last 18 months. How many airlines overseas have gone bankrupt? How many that didn't are at least in part nationalised? (EK, NZ, SQ, QR, EY.... all of the ones mentioned in this thread!)
If it's legal and above board, it's in the national interest to do so.
And how many of those airlines kept flying? QF basically shut down any international services except for cargo. If it hadn't been for those international airlines we'd have been completely isolated.
Any 'advantage' that leads to higher prices is not good for consumers.