Ok, so I’ve now read the act in question. This is my take on the act, though of course it’s only my non-legal, uninformed opinion, so read it yourself if you’re interested.
My summary:
The Act in question appears to be the “Serious and Organised Crime Act (2008)” (you can search for it [url="http://www.legislation.sa.gov.au/index.aspx"]here[/url] if interested). The Act only applies to “declared organisations”. To become a “declared organisation” the police need to submit a request to the Attorney-General, including the Commissioners support. The Attorney-General must then publish a notice in the Gazette and in a newspaper circulating throughout the state. That cracks me up – who reads messages from the Attorney-General!?!?!?!

The named organisation then has 28 days to submit an appeal.
The Attorney-General then considers all the police evidence, as well as any appeals submitted by the public. If he considers that the members “associate for the purpose of organising, planning, facilitating, supporting or engaging in serious criminal activity”, they can become a declared organisation. The organisation can become declared even if not all members associate for the above purpose, (i.e. it applies if sufficient numbers do so, or those who do so are of sufficient influence within the organisation) and even if members also meet for other non-criminal purposes as well.
Once the declaration is made, the Attorney-General must again make a public notice in the newspapers.
The police then may serve a person with the control order. The control order basically says they can’t be near certain people, certain places and possess certain things. So you can’t associate with anyone else in the declared organisation (through any means – including electronic, phone, in person, etc) and you can’t have prohibited weapons or dangerous articles (guns, knives, bludgeons, other lethal weapons, lock-picking items, etc)
The control order may be served on the person, or if they think the person is inside the premises which they are unable to gain entry to, they can leave the order with someone over the age of 16, or attach it to/near the front door. Or, if the police officer deems it as urgent, the person may be verbally told the order and told where to go to pick up the actual order paperwork the following day. The person has 14 days within which to object to the control order.
It appears that though the person may object to the order, they do not get access to any of the police information against them. Unless I’m reading it incorrectly, it appears that they must defend themselves without knowing the evidence against them.
If the control order stays in place and the person fails to comply, the penalty is imprisonment for up to 5 years
The control order also seems to act as some sort of quasi-warrant, as it enables police to search the premises specified by the order, or any vehicles that is approaching, is in, or has recently left the premises.
A person who associates with a member of a declared organisation, or with a person who is subject to a control order 6 or more times within a 12 month period can be imprisoned for up to 5 years. To be imprisoned, you need to have known the person was a member of a declared organisation, or subject to a control order (or deemed that you should’ve known). Also if you have a criminal conviction under the regulations (under the explosives act, lottery and gaming act, firearms act, controlled substances act, etc), you may not associate 6 or more times within 12 months with another person who has a criminal conviction under those acts.
There’s a bunch of exceptions for people who are associating due to performing tasks under various acts (education acts, welfare acts, correctional acts, health care acts, etc) or during legal proceedings. It looks like they’ve also beefed up the protections against reprisals on police officers, which I fully support – the cops have a tough enough job already.
So – overall, I think the law will be popular if introduced into NSW. Basically it restricts (or more likely provides an easier way to chuck in jail for 5 years) anyone who is already a criminal and associates with other criminals. I personally don’t think that’s such a terrible thing, as if someone was a criminal and is now trying to go straight, they’ll probably not be hanging around much with other criminals. So they’re only further isolating the criminal from the non-criminal.
There are two parts which concern me. Firstly, it's kinda hard to object to or defend yourself from a control order when you don't know the reasons why it was approved. I guess you're left with general protests if you're innocent and general protests if you're guilty.

The other part that concerns me is the lack of controls on becoming a ‘declared organisation’. Any group could theoretically become a ‘declared organisation’. There is nothing in the writing of the law that mentions anything about motorcycles, therefore I don’t believe ksrc is at any more theoretical risk than, say, a knitting club. However, the bit that concerns me (that didn’t even enter my mind until I’d read the act) is how easily certain other groups could be targeted. I’m thinking of quasi-political groups, say for example, pro-euthanasia groups. After all, they've already added euthanasia groups to the banned internet list... I see it as open to abuse - not police abuse as I originally was concerned about, but political abuse.
And as far as the "terrorist" comment goes - the police, politicians and media all need to get a thesaurus. That word is getting overused to the point of becoming a bingo. It has a meaning - don't dilute it by redifining it to include anything you don't like!