The version I knew was "Those who would sacrifice liberty for security will achieve neither", but this passage seems even better. :)
It's a real shame that Australia is following the way of the United States in terms of "national security". The way I see it, if we radically alter our lives by making them more complicated and difficult, the terrorists have won already.
I remember listening to Lawrence Lessig give a talk on IT Conversations about copyright law and how a restrictive change can be implemented very easily, but it can take a very long time to undo. I think the same applies to this as well.