I doubt that he imagined that he could write a law that would force the encryption algorithms to yield to the ASIO. It was all about using a big stick to force people to help break encryption, by inserting back doors etc.
Sure he was a lawyer and banker and probably never should have been involved with things like encryption and the NBN, but that's politics for you.
He was a lawyer, so would be quite aware of the meaning of the words he was uttering.