No you're wrong in thinking that. Australia has never been singled out on these grounds and never on the "blacklist". These were the countries that required passport holder to apply for Chinese visas in their home countries, (with exceptions given for those who held documentation of residency or working in a 3rd country and could also apply there): Afghanistan, Algeria, Bangladesh, Congo, Egypt, Gambia, Ghana, Guinea, India, Indonesia, Iran, Iraq, Kazakhstan, Kirgizstan, Libya, Malaysia, Mali, Mauritania, Morocco, Nepal, Nigeria, Pakistan, Philippines, Saudi Arabia, Sierra Leone, South Africa, Sri Lanka, Sudan, Syria, Tajikistan, Tunisia, Turkey, Uzbekistan. There has been no official word that the application restrictions have been lifted for said countries, so we only have anecdotal evidence to go on and that has been a little sparse lately.

The fact that Aussies can now request and receive multiple entry visas from the Chinese has more to do with political and economic relationships and the current warm fuzzy feelings between the gov'ts. However, like US nationals, the multiple entry deal for Aussies (sometimes can get for up to 12 months) is good only if you apply in your home country.