Yes all handguns are banned in Australia
Don't believe what you hear from the media they are hardly ever correct, or atleast telling all the truths/facts.
One crash course for current Australian gun laws coming up;
Cat A - air rifle, shotguns (not pump or self loading) rimfire rifles (pump and lever ok but not self loading)
Cat B - Black Powder, Centrefire Rifle (lever, pump ok but not self loading)
Cat A & B are QUITE easy to get if you have a clear record.
Cat C - Self loading rimfire rifles up to 10 shot mag self loading and pump shotguns up to 5 shot cap
Mostly for farmers etc but can be had by some sporting shooters for shooting clay's if they have a medical certificate saying they need one (many people still have Cat since medical certificates are not very hard to get if you have ever had a shoulder injury etc)
Cat D - Self loading Centrefire rifles, Self loading rimfire above 10 shot mag, self loading and pump shotguns above 5 shot cap
(Not so easy to get)
Cat H - Handguns
This is where it gets interesting
Revolvers min barrel length 100mm not greater than .38 cal
Semi auto min barrel length 120mm mag cap 10rd, not greater than .38 cal
There is a large cal permit which more and more people are able to get (depends on wether your club is approved) which allows up to .45 cal in handguns
These restritions do not relate to black powder firearms
Cat G - Collectors
Can have anything even machine guns and rocket launchers but the more "evil" the firearm the more disabled the firearm is by law ie any machine gun a collector has will never fire a live round again it will have a welded rod down barrel, action welded up etc
Collectors can have all handguns but are required to temporarily disable them ie remove firing pin. Not hard to make the firearm work and of course many do.
All these Cat's bar C & D are fairly easy to obtain provided you have a clean record, are a member of a club, and have an approved safe.
p.s Collection is several times larger than what is in pic