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Kotaku Australia asked Nintendo about the situation and their response is below.
It appears Australians won’t have access to Control: Ultimate Edition or other cloud gaming titles on Nintendo Switch (like Resident Evil 7).
A local representative from Nintendo told Kotaku Australia, “The regional availability of any individual game, regardless of its distribution method, is determined by the publisher.”
No further information about cloud gaming for Nintendo Switch consoles in Australia was provided, so don’t hold your breath for Switch cloud gaming in Australia anytime soon.
I'm surprised they got any response at all from Nintendo as the normally don't comment. It's them kinda passing the buck.