The key sticking factor in developing a nuclear industry would seem to be the political risk. Would any company take on the risk of building a nuclear power plant while the likely alternate government is opposed to the plan?
With a construction lead time of 10-15 years, this is likely to encompass at least one change of government, and a likely 2 full rotations of the senate. Without significant financial guarantees it is difficult to see why any company would take on the risk of having a billion dollar venture, with a high likelihood of crashing down on change of government. As the report summary states on page 10:
An efficient and predictable regulatory process is an essential prerequisite for a nuclear power
industry. With its high capital costs, nuclear power is very sensitive to delays and uncertainty in obtaining approvals.
While this is mostly talking about governments altering the requirements, an opposition hostile to the very idea would seem to pose an even greater risk. This means the government initiating the deal would essentially need to tie some sort of financial guarantee into the project. While a policy reversal for the ALP once construction has begun would not be out of the question, the chance that they may decide to roll back these changes as well makes it a very risky regulatory environment.
Personally I think this is a shame, as we should have all options on the table to reduce CO2 emissions and nuclear is still one of the few viable base load power sources.
Update: Of course the political risk is not only federal but also regional, with several States already coming out and saying they would fight it in the courts, although given the recent WorkChoices decision it appears unlikley they would win according to this report.