I won’t bore foreign readers with all the machinations of our various governments in response to covid, but the long and the short of it is that the two biggest two states and one territory (New South Wales, Victoria and the Australian Capital Territory) are currently in the middle of a (small, by world standards) delta outbreak. The plan in those three states is to finish vaccinating everyone (which is a few weeks away) and then open up. The reason why we’re not already vaccinated to those levels is also quite a saga (mostly federal government incompetence, in short). Within a few weeks the double-dose vaccination rate will be at similar levels to Europe and the more vaccinated parts of the United States, and life should be pretty similar to those places - if you’re vaccinated, life is mostly back to normal. The Worlds 2022 host city, Wollongong, is in New South Wales.
The other states, including the host state of the TDU, are quite literally covid free, and to do this they’ve shut their borders to the entire rest of the world, including other Australians. It’s unclear, to say the least, when this will end.
Worlds 2022 will happen; it’s just not clear whether half the country will be reopened to visitors by then!