UncleBob said..Planeray said..
Yeh, no hp restriction in NSW - it's based on speed (10 knots off the top of my head).
I also looked into the Torqueedo electric. Weight is amazing, from what I've heard, equivalent to 3.5 hp power, but price is a doozy - $3000 ish. For that price, you could buy three normal outboards.
Actually incorrect, any boat with an engine exceeding 4 kilowatts (5 hp) requires registration in NSW.

UncleBob is correct, the 10 knot thing is for licensing purposes ...
"The speed at which a boat is driven determines whether you need a licence. Anyone who is the operator of a power-driven vessel operating recreationally on NSW waters, at a speed of 10 knots (approximately 18.5km/h) or more must have a general boat driving licence"
"The following vessels must be registered with Roads and Maritime when occupying NSW navigable waters:Power-driven vessels that are powered by an engine with a power rating of 4.0 kilowatts or more (greater than 5 horsepower)"