This is a complex issue, so you need to study the rules carefully in your state and get expert advice.
Remember that if you run an illegal mod and there is a crash your insurer can use the illegality to get out of paying out. Insurers are always keen to save money. The insurers like assessors who find ways to reject claims against them.
This happens a lot more than many people realize.
For example, this morning I followed an 80 series with tyres sticking out well beyond his flares, so he is instantly illegal and can be fined on the spot, his vehicle can be declared unroadworthy and have to be towed and his insurance could be voided.
Many of the vehicles you see in magazines are actually illegal. It's the owner who cops the penalties.
Saying there are a lot of people breaking the rules doesn't reduce the fact that the rules are still the rules.

