Yes it is a postal vote application form, but what I've read in the media is the envelope provided means it doesn't go direct to the Electoral Commission. It goes somewhere else for the information to first be collected by someone other than Electoral Commission and the form is then forwarded on to the Electoral Commission.
If you really want a postal vote application form you know where it has come from, you can visit the AEC site and print your own postal vote application form. (http://www.aec.gov.au/election/pva/files/pva-180316.pdf)
If you do wish to use the form provided by your local member or political party, you can also discard the envelope and use your own envelope. The address for where to return your form is on the reverse of the form. The address is currently Australian Electoral Commission, Reply Paid 9867, [Your capital city], where you enter your capital city. No postage is required if you post from within Australia.
Kelvin Eldridge
www.JustLocal.com.au
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