I think this discussion is putting the cart before the horse. If there is no alternative to this app, what protections should it have? That's the second question to ask. The first one, which hardly anyone is asking, is whether the thing is necessary to start with.
There is one very strong reason to suspect Australians don't need this: the app has only been here 3 days, but the novel coronavirus has been around for 3 months, and it has never looked like getting out of control. Turns out that telephones and old-school contact tracing still work, and they work even better with some help from DNA manipulating virus detection robots. Who would have thunk it?
Plus, at this point, each app user has a 1 in a million chance of being exposed to the virus. Talk about number needed to treat!
Australia should focus on prisons, aged care facilities and concentration camps, where the risks are still meaningful. And we should rack our brains to imagine other ways that the virus could rapidly spread beyond our capacity to contain it. If things keep going right, we won't need this app. If something goes wrong, it will be an unexpected thing that the app can't fix.