unixman it will be banned from the network
Maybe, but I don't see anything in the article about "banning" devices. Here's a likely scenario (idk, haven't read anymore than skimming the article): Samsung phones might default to 2G when calling triple zero. The cellular provider/emergency services are moving to 4G only for triple zero. Therefore, if you want to use emergency services, your phone needs to be updated in order to not default to 2G anymore. Maybe they're getting rid of 2G altogether?
Thus, if your phone tries communicating over 2G at all, your IMEI is being marked as incompatible with the inevitable changeover. If they "banned" you from the network, you'd likely go to your cellular provider to complain you no longer have any service, at which point they can tell you to update your phone. Not a bad solution, if that's what's happening. Plenty of older/non-tech folk don't understand the importance of keeping your phone updated.
unixman Can telcos collect what specific version of operating system I am running
No, but I'm unaware of regulations in other countries. Maybe Australia has an agreement with phone OEM's in the region to send that sort of information.
unixman if choose not to update my samsung device
Anyone that cares about security and privacy should keep their phone updated. If you feel you'll get a worse experience by doing so, it is indeed time to get a different phone/OS, one you trust more.