Outlast 2 won't be released in Australia

Outlast 2 is coming out on April 25, however, as reported by Kotaku, it has been refused classification in Australia, and therefore won't see release there.

Kotaku received a copy of the report from the Classification Board, explaining why the game was refused classification, and it has to do with sexual violence, due to it being a game they deem to "depict, express or otherwise deal with matters of sex, drug misuse or addiction, crime, cruelty, violence or revolting or abhorrent phenomena in such a way that they offend against the standards of morality, decency and propriety generally accepted by reasonable adults to the extent that they should not be classified."

The demo for Outlast 2 was rated 18+ when it came out, so this rating is a little surprising. Do you think that refusing classification was reasonable based on those grounds?