Thanks for pointing that out, Kimba - your observation seems very accurate. Trust the media and their sensationalism!
These seem to be the facts (from reading the meat of the article):
1. This is a DRAFT report (called "Get Up and Grow" report), devised by Melbourne's Royal Children's Hospital, and is something submitted as a recommendation to government.
2. The guidelines in the report are intended to help curb the spread of obesity.
3. What the draft guidelines say is that:
Based on recent research, it is recommended that children younger than two years of age should not spend any time watching television or using other electronic media (DVDs, computer and other electronic games).
4. The government has refused to comment on the draft guidelines.
Somehow, that gets reported as the Australian government will ban TV for under 2's!