Hey,
Dave's right, you are not allowed within 50m up or downwind of the flags and 500 metres out from the beach. Although most clubbies don't enforce the 500m rule, it is within their right to do so.
Clubbies around Australia are pretty reasonable guys and girls who volunteer their time to keep others safe. They usually just get fed up with thoughtless, self centred kiters blatently disregarding the rules. This happens on so many of our beaches it's no wonder kiters get a bad name with the SLSC in many beaches.
If you are competent enough to stay out of the way, then do it! If you aren't competent enough, rig downwind or practice more before you venture out into the ocean beaches.
Give 'em a break!

Safe kiting to all,