That would actually still be illegal in Australia (at least, in all the states I've checked). For NSW in particular the The Crimes Act (1900) s91fb[1] states that materials that "appears or are implied to be" child abuse material are legally defined to be child abuse material. The criterion is further expanded by saying that the judgement of whether something qualifies is by "the standards of morality, decency and propriety generally accepted by reasonable adults" (among other restrictions). Though, as this article proves, Australian police are particularly well-known for being allowed to break laws for the purposes of an investigation.

Given that loli isn't legal in Australia, I doubt that photorealistic artificial child pornography would fare better.

[1]: http://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/nsw/conso...