Further to my last post - I just checked the "Australian Road Rules" which is referred to from the South Australian dept of transport...
"A driver must not overtake a vehicle unless:
(a) the driver has a clear view of any approaching traffic; and
(b) the driver can safely overtake the vehicle."
Again there is no restriction which forbids you to overtake if there is any approaching traffic. Obviously a "no overtaking" type sign would override this, but I've never seen any. When it is actually forbidden to overtake then they just paint a double white or unbroken centre line.
I'm now really curious to know if there is anywhere that this practice is actually illegal. I still don't think it is but am keen to know otherwise...
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