The only illusion is that woven by conspiracy theorists who have half the facts and half an idea that fits an agenda.
The Aus government, like many western governments, have a lot of personal data and a duty of care to protect that data. Look at the number of data breaches by private corps vs governments and you will see they do a much better job of it. If people wanna post their intimate details on social media and cry about it, they should be crying to the corporations, not the government. The average Joe/Jane's data that they willingly give out online is no business of government and nor should it be. You can do what you like with your personal details.