Yeah, we have licenced brothels in most states now. I think Tasmania is the only one lagging behind, and maybe Queensland. Soliciting on the street is illegal, of course, but legal licenced brothels were set up for a lot of good reasons: to stop corrupt cops extorting them and being bribed; to make the industry safer for the girls who work in it; to get solicitation off the streets... lotsa reasons.
The news story reminds me of the reaction to US servicemen in Darwin during WW2: "They are overpaid, oversexed, and over here."