I don't think that individuals, even in groups can be at war with a
nation. It does take the claim to be in possession of a souvereign
territory to declare war upon another.
So, technically those guys are contraband, rebells at best.

That then brings up the issue that rebels are exempt from the Geneva
Conventions and Aussies could just lock them all up without due process in
a big camp and throw away the key.

Not to forget that Australia could call on her allies to hunt theses guys
down if they were to succeed to bring a square foot of soil under their
control.

Why can't people read more before they act?
Occupy an unhabited Island, declare independence and write to the UN for
recognition. Once that letter is sent off, a process (futile as it may be)
has been initiated and Australia as a self-proclaimed civilized nation
would need to negotiate or invade - using armed forces, rather than
police.
Both would look bad in the public eye and chances are that the occupants
of the formerly unihabited island would be ridiculed and largely left
alone.
Then they can look at annexing Australia...

With all the technology and potential the human race has at it's disposal
I will never be able to understand why people still have to fight over
pieces of dirt. There is enough space for everyone and many more. And it
would be corporations who feed everyone, not governments...

Cheers,
Robert.

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