Backpack will do fine, especially for Oz.
Bill's right, you do need more strength as you'll be supporting more weight, but overall I think control improves because the bike becomes more managable. For explanation of this opinion, consider that standing up on the pegs increases control, even though the CoG of the bike-rider system is now higher.
Depends mostly on what sort of riding you want to do, alloy panniers and packing everything on the bike favours a more long-distance, border-crossing, foreign city, less off-road approach. Carrying a backpack with most of your camping gear in it favours a more off-road, wilderness approach.
I met a man in Warburton who rode the CSR unsupported, on a TTR600. He was carrying all his camping gear and food on his back, a good 30 or 40 kg, and a bumbag tool roll. All he had strapped to the bike was fuel, water, a tent and his sleeping bag (fuel and water strapped low on the sides and the bulky, but light, tent and bag on top).
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