Well, not banned, more like refused classification, and...hey, wait a minute, weren't we supposed to be over this shit?
Turns out that, nope, despite the Australian government nominally approving the creation of a strictly adults-only classification rating for video games, some titles are still being deemed by officials as being too much. The latest example being Hotline Miami 2.
The reasons for its refusal haven't been explicitly released, but the Board's initial statement (obtained by Kotaku AU) says:
The computer game is classified RC in accordance with the National Classification Code, Computer Games Table, 1. (a) as computer games that "depict, express or otherwise deal with matters of sex, drug misuse or addiction, crime, cruelty, violence or revolting or abhorrent phenomena in such a way that they offend against the standards of morality, decency and propriety generally accepted by reasonable adults to the extent that they should not be classified."
Note that "RC" means "Refused Classification", which under Australian law means it can't legally be sold in this country. Which is, in practical terms, a ban.
UPDATE - Kotaku AU now has the exact reason the game has been refused classification.
In the sequence of game play footage titled Midnight Animal, the protagonist character bursts into what appears to be a movie set and explicitly kills 4 people, who collapse to the floor in a pool of copious blood, often accompanied by blood splatter. After stomping on the head of a fifth male character, he strikes a female character wearing red underwear. She is knocked to the floor and is viewed lying face down in a pool of copious blood. The male character is viewed with his pants halfway down, partially exposing his buttocks. He is viewed pinning the female down by the arms and lying on top of her thrusting, implicitly raping her (either rear entry or anally) while her legs are viewed kicking as she struggles beneath him. This visual depiction of implied sexual violence is emphasised by it being mid-screen, with a red backdrop pulsating and the remainder of the screen being surrounded by black.