It's not scheduled to be blocked at all. Again, that is pure hyperbole - very "slippery slope". Some internet content has simply been "officially reported" as potentially violating an Australian law.
Should it continue to be visible on the Internet in Australia and should the original complainants wish to pursue the matter, legal action may ensue. As with Gutnick, it will require them to launch a case in the hosting country (i.e. USA) in which they will need to prove that (1) Australian law has been violated, and (2) that law is subject to international reciprocal jurisdiction with the USA.
Meanwhile, there is nothing stopping the USA hosting that website, and nothing stopping Australians viewing the content.
Jeepers - hyperbole or what!
No-one is going to be handed over to anyone in these situations. The US website hosts will not be required to appear in an Australian court. Actually the opposite would be required, if anything - the complainants would probably be required to appear in a US court, to explain why the "offense" is subject to international reciprocal jurisdiction and why the US hosting site might be subject to Australian legal response. I suspect if it ever got that far, the arguments would be VERY dull and dry, and over rather quickly.
Incidentally, if it was ever decided they WERE subject to Australian jurisdiction, the worst that would happen is that page or two would get banned, not the site. How that might be done is unknown, and frankly I think it would be ludicrous and infeasible in law and in practice. Which is why it will never get that far, and why the US hosting site owners can probably sleep quite easy at night. Which means I agree with your sentiment - this is a totally pointless waste of time except for the lawyers, and just a very poorly thought-out vote-grabber ahead of an election.