Reading a little further, the court made a comment about how it can only apply the law as it is after Gillard fucked with it and it isn't empowered to give its view on that law as it now is. So it sounds as though the judges may be saying "yeah, it's fucking insane, but you essentially removed sex based protections when you altered discrimination law and this is the result". Although that doesn't explain why they held up his cross appeal for direct discrimination and punished Sall still further (or does it?).
They may be right. It might actually take a further High Court loss and then subsequently a complete overhaul of the law to take it back to what it was originally before it becomes legal again for women to be able to congregate without men in Australia. Insane. Wasteful. Utterly absurd.
Fucking hell, I backpacked there years ago as a solo female traveller and there were lots of female only dorms in hostels, which I always went for if I could (most places automatically put lone women there). Women who backpack there now not only can't sleep and change in a female only dorm, they have to accept someone like him in there and be gaslit and coerced accepting he's a woman.