Once again this will of course run on the same premise of "guilty until proven innocent" from the Online Safety Act. Children's safety is one thing, but forcing adults to give away private details to unknown age verification entities to simply use the devices they already paid for is an absurd proposition.
Private businesses should not have any insight on what's on people's phones, let alone the ability to ban images. Whilst we, as a society, may have an issue on our hands in that sense (I believe that we totally don't), it is for us to decide how to tackle that, not for governments to actively allow and enforce such rules via private enterprises.