Personally I don't think the filtering will ever become law. The Australian govt are pandering to a single evangelical senator (Steven Fielding) who's vote is critical in getting a lot of their legislation passed. My guess is that they're holding out filtering as a carrot to get other things through. They know it'll be blocked by the other parties if it ever comes to a vote so they don't have to worry about it.

[Edit] Yes, it is embarrassing all the same!