It's not banning, they are not classified.
The problem is that in Australia games have the same rating system as films, but without the R rating, which is given to films that only people above the age of 18 can watch. Thus games of a particularly mature nature cannot be sold because they're too strong for an MA (15+) rating but there is nothing stronger to rate them as. There is a fairly strong movement to introduce an R rating for games. All the states support it but one, but unfortunately there needs to be unanimous approval for it to be brought in.
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Spending as long as I do here, it's easy to forget that Oddworld has actual fans.
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