Yeah as someone outside Australia I've been surprised at how biased and simplified the reporting has been. A complex constitutional issue is being painted as a simple "good people, bad people".
When I read about the changes myself (after having to go hunting for some actual detail - the reporting is pretty poor on this) it honestly seems more like virtue signalling rather than useful or meaningful reform.
In Australian slang a mob can just mean any grouping of people, not necessarily a criminal group or a group of rioters. It's not uncommon for people to refer to their own ethnic or political grouping as a mob; at least from what I've seen when reading Australian websites.
And by local government I think they are referring to the states and territories governments.