NSW agrees to R18+ rating for games

They can, but only under specific conditions.

Part of the agreement for getting this R18+ rating going was that games that have been refused classification, and appealed that classification, taking the RC to the ratings board, cannot be resubmitted. After all, if they could this would allow publishers to submit over and over until they get what they want. When it's absolutely finalised and has been refused appeal, no publisher can resubmit the game, regardless of the new R18+ rating.

However, if the game was RC'd but never had the RC appealed, the publisher could theoretically appeal the RC after the R18+ rating is introduced, possibly getting the game to go through.

There's two other ways that might get a game uncensored too. The first is to release a mod/patch/update that unlocks or adds gore, and submit that to the rating board. That might work, though I'm not sure of the legality regarding mods that increase the shelf rating. The second option is to re-release the game with a change, eg: "Mortal Kombat Australian Edition". A new release would require new classification, and could get the R18+ stamp. The downside to that is that the publisher would have to submit that new release for Microsoft/Sony/whoever certification, which takes time and money that the publisher is unlikely to spend.

Those hoping for Mortal Kombat probably wont ever get it. As far as I'm aware Warner Bros. appealed the original refusal of classification, which would disqualify it for resubmission for R18+ unless they were to completely re-release/package the game. If a GOTY edition with all the DLC comes along that could be submitted

Yes, it is stupid. It is stupid to change a system and entire classification ruleset and not allow products to adapt or be classified under the new structure. It makes no sense.

But that, sadly, is what was agreed on (as far as I'm aware).

The ABC article seems to be speculating, much like we all are. As JackSlack said it will also depend on what the guidelines end up being. If the original draft goes through then yes, games with higher content will be allowed under the R18+ rating.

But I'm 90% sure that refused classification games that have already appealed the decision, only to have that appeal denied, cannot appeal a second time regardless of the new rating. Not unless they resubmit under the guise of a 'new release' (eg: Mortal Kombat Australian Edition").

It's something O'Conner and co have stressed quite a bit, that games refused classification wont be resubmitted. I could be wrong, but I'm pretty sure that was the price we had to pay.

Im not sure how it works for film, but as said the new release policy would still theoretically apply for games. A GOTY edition or repackaging of the same game would technically require resubmission to the Classification's Board, which could change the rating.

Its possible that this rule regarding current releases is exclusive to the way games are rated. I think it was the condition some partied demanded for the R18+ thing to go ahead, as they were worried all this RC'd games would suddenly be put through.

Pretty much. RC'd games getting the go ahead to release was one of the most vocal concerns from the opposing parties. They all seemed shit scared your RapeLays and what have you would flood the country if we allowed an adult rating.

Well, its not really surprising that those opposing freedom of choice and expression also happen to be hyperbolic and irrational.