That is appropriate. I believe the confusion arises from two important cogs in the wheel of safe aviation. First, CASA must, out of necessity, delegate various regulatory powers to industry. This is not self-regulation however. The delegates become representatives of CASA and are required to act as though they were CASA employees.
Delegations can be, and are, revoked.
This is standard practice in many, if not most, countries, and particularly the more mature aviation nations. The second point which has led to this misunderstanding is the move towards a systems audit approach. This was started nearly two years ago with the large airlines, and is now being rolled out in varying forms to all segments of industry. In the old days of the Department of Civil Aviation in its heyday, the approach to regulation was totally prescriptive and totally hands on. Operators were told exactly what they had to do, exactly how to do it, and Examiners of Airmen and inspectors checked that it was done the 'right' way.