The Church and Toleration

The article cited in Rick's earlier post states that the Catholic Church supports Australia's Racial and Religious Tolerance Act, as well as the prosecution of the preacher who made anti-Islam statements. This strikes me as a remarkable disregard of subsidiarity's import, as well as the Church's own ultimate self-interest. On what basis would the Church cede to the state its authority to define and pursue its own vision of appropriate religious discourse, especially as applied to the expression of the Gospel? If the Church is convinced that its own articulation of differences among religious communities will never run afoul of the modern state's idea of how religious folk should talk about each other, does the Church's support of the law suggest (at least in Australia) a broader abdication of its prophetic role?

Rob