EB also emailed me this evening:
FREQUENTLY ASKED QUESTIONS
Q: Do I have to purchase Reaper of Souls to play on the Australian servers?
A: All Diablo III players will be able to take advantage of the new local game servers right now, at no additional cost.
Q: Will I need to pay any fees, register to transfer characters, or level up from scratch?
A: No! Because the local Diablo III game servers will be linked with the existing Americas region, all characters, gold, and experience will be unaffected. The introduction of Australian servers will be an immediate benefit to the player, providing a smoother, more responsive gameplay experience.
Q: Will I still be able to play with my friends who are on servers in the Americas?
A: Absolutely! Because the Australian Diablo III game servers will communicate with the servers in the Americas, you will be able to seamlessly play with friends who have already started their adventures there. You will simply play on the server of the person who hosts the game, whether that be Australia or America.
Q: What about Hardcore characters?
A: Playing Hardcore characters with high latency is frustrating, especially if this causes you to die. To maintain the quality of the experience, Hardcore characters from ANZ will only be allowed to play on the Australian game servers. In the event that the Australian Diablo game servers are at full capacity, you will be placed in a queue.
Latency has gone from ~300ms on Telstra Cable to 38ms. Might be able to get back into HC now