Airports in Australia were and often still are government-owned. Local, regional. airports (say, Rockhampton, Bathurst, Margaret River, Byron Bay) are owned by the local council. Large airports, such as this one, were owned by the Federal government, initially fully, and then partially sold off (i.e. the assets were wound up into, for example, "Sydney Airport Corporation", which officially runs the place).

In the last... Decade or so, these airports have been, largely, fully privatised, I believe, which means the government has sold off their share, and absconded all responsibility for the running of the place. Meaning that the now privately-owned "Sydney Airport Corporation" can do whatever it wants, such as this, without fear of public backlash, because they only answer to shareholders and private investors now, and not really Joe Public, i.e. the majority of their customers...

That make sense?

"Woke government" is a thing, sure, but they're not gonna be putting drag queens in the arrivals lounge, to say the least... "Woke corporate", on the other hand... You get the idea.