This has been done to death but for the record...
R34's are required by law and SEVS compliance to have the HID globe and ballast removed from the car during compliance. They are to be fitted with standard Halogen globes.
Modern cards with HID's like my Audi have a number of added features that the R34's do not including auto levelling lights and washers. This avoid the dazzle effect over peaks and during rain. I'm not saying this helps, it's just a bullshit ADR and must be complied with.
Personally I used to drive an R34 which was imported personally during the switch from RAWS compliance to SEVS. Seeing the car sat in my garage uncomplied while Crossover gained certification I had the chance to pull the Xenon headlight assemblies out and put in R34 4 door Halogen assemblies. I put them back in after compliance seeing the ballast for the HID's plugs into the same loom as the Halogens (from memory). So there are cars around like mine that still have them and probably lots of cars from the early RAWS days.
I also got pulled over in Knox for my lights and other things. Pettet told me I was pulled over because my "lights looked too blue" even with stock globes. I never pulled them out and I also went to McCloud for EPA and Vicroads. Both places did not even look at them, know or care.
Lights are not an EPA concern, they are however a roadworthy item. I got a road worthy no problems with my lights in.
So, at the end of the day they are 100% illegal under Australian law and SEVS compliance, whether anyone but the cops care is anyone's guess but in my experience. No.