In NSW you are not required to hand it over to police.
From the site:
"You don’t need to hand over your device to the licence checker. If a licence checker is struggling to view your digital driver licence, adjust the tilt of your device or turn up your brightness settings. "
Isn't this the same state where they have been strip searching 12 year old girls without a parent or guardian? Most police I have encountered are great but good to know how to protect your phone incase you encounter one of the rare idiots.
From the site: "You don’t need to hand over your device to the licence checker. If a licence checker is struggling to view your digital driver licence, adjust the tilt of your device or turn up your brightness settings. "