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Many would answer because we are regulated by a "Nanny" Government, others still would imply it's due to too many do-gooder Bureaucrats (whom we don't get too elect) but I'd argue it's a little of both, Legislative bodies set out to regulate Australians in their day-to-day activities with the intent of reducing fatalities (think helmet/seatbelt laws) whilst Bureaucrats (and Law Enforcement/Judicial Authorities) monitor & interpret the application of the written Law.

On the other side of the coin, many things are banned in Australia because it was finally recognised how much damage was done within Australia by the lack of regulations on introduced species and items in the early years of European settlement. Many plants and animals are now banned because of the irreparable damage introduced plants and animals have done in Australia, specifically, causing the extinction of so many native species. Many items are banned because they potentially carry dangerous and destructive species such as fire ants (too late for that now), European honey bees and other insects and suchlike that would lead to great destruction within the environment.

In addition, Australia has exceptionally high standards for what drugs and pharmaceuticals are permitted into the country. While certain pharmaceuticals might be found to be beneficial overseas, Australians authorities tend to be more cautious that sufficient testing is done before allowing them into Australia.

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Q: Why are so many things banned in Australia?
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