I was wondering if anyone could clarifiy the situation on owning lock picks in New South Wales.
Nope. But legal aid can:
http://www.legalaid.nsw.gov.au/asp/index.asp?pgid=586Legal aid is (and I quote) "is not means tested and you do not need to apply for a grant of legal aid to get free legal advice", i.e. they don't care if you're rich or poor. Make it clear that you're trying to avoid breaking the law by calling them prior to doing anything, and they should be able to help.
Also does anyone know if there are any reputable sites which i can purchase them from that ships or is located in Australia?I don't think there's anywhere in Australia that'll ship to non-locksmiths. Outside Australia, Deal Extreme, LockPickTools.com or LockPickShop.com (who kindly sponsor this board, and offer a discount to members) all ship to Australia. Your cheapest option to start with would be the DealExtreme 9-piece "advanced" kit, which is <$AUD10 including shipping.