It has primarily to do with things like changing track and modifying the sub-structure of the vehicles in any way, which the "powers that be" simply do NOT want to have to deal with here. Also, vehicles here are usually only allowed to have wheels fitted that are a maximum of 1 inch over manufacturer's specs ... the list goes on. But insurance is the kicker - modified vehicles here cost a LOT more to insure and in the case of a DNA product, the sales-droids wouldn't be able to find a box to tick so they would usually refuse insurance. And no one with even half a brain thinks driving a car around UNinsured is the best thing to do - that said, plenty do. Australia has become an extremely risk-averse nation.
And before other Aussies jump in saying they know this way or that, around the system, I am not speaking from 'no' experience in these matters... and yes, I know there are insurers who will underwrite highly modified vehicles, but the premiums are brutal.
Finally, there are a couple of firms here building Cobra reps - it took my mate around 20 years to get his cobra legally registered. He was driving around a "ford coupé" for a loooong time
- and it was uninsured. It comes down to how much hassle you're willing to go through and how deep your pockets are once the cops realise what you're driving - but my information and knowledge is not current as it has been some years since I went through all the BS finding out, so maybe I am wrong. I invite some other Aussies to find out and show me where I am wrong (in fact, I'd LOVE to be wrong!)