The UK and the US have wanted to do this for a long time. Australia is the first to do it. Essentially, law enforcement will be guaranteed backdoors for encrypted data, making it easier to see confidential information from selected targets.
Australia is now the first Western nation to ban security, following a decision by its parliament to pass a bill forcing companies to hand over encrypted data to police upon demand. The government will be allowed to demand this without judicial review or oversight of any kind, beyond the requirement to get a warrant in the first place.
These secret backdoors weaken security systems and provides no privacy for those with data online. Healthcare data is online among other confidential information that will be easier to hack with these mandatory backdoors.