Hi Rob:
There's a good article in Wikipedia that provides some very useful background information about what an IDP is and how it came to be - here's the link:
Wikipedia - IDP.
Essentially, it's a translation of your national driving permit into several different languages. It also provides a standardized way of indicating what type of vehicles (automobiles, motorcycles, trucks) you are entitled to drive.
In theory, you need one if you are going to drive in a country outside of your own, unless there are other bilateral agreements in place that eliminate the need to carry one (for example, Canada & the USA, and most likely Australia and NZ have bilaterals). There is a Europe-wide agreement to use a standardized 'European' driver licence, that eliminates the need for European residents (of the countries that participate in this agreement) to carry IDPs. See this Wikipedia article for more information about that:
Wikipedia - European Driver Licence.
In practice, you generally don't need one in Western Europe, especially if the language of the country you are visiting is the same as the language of your national driver permit. I've spent many years in many different countries, and have only needed to show my IDP when the person asking for my driver licence did not understand English.
If you are planning to go to Eastern Europe, it would probably be a good idea to get an IDP before you leave your home country. Generally speaking, the smarter (better educated) and more tolerant the cops are, the less likely you will need an IDP, and conversely, the less educated and less tolerant the cops are, the more reason to have all your papers in order.
The IDPs are only valid for one year, but I don't bother wasting the money to renew mine every year. I just keep the same one I got about 10 years ago, my rationale being that it's basically just a translation, and nothing has changed on my national driver licence in the last 10 years.
Hope this gives you some perspective on the subject.
Michael
PS: What you will need is an oval white disc on the back of your moto with the appropriate code for your country. I think that is 'AUS', but I am not certain. That oval white disc (sticker) is critical, you 100% need it. See this Wikipedia article for more information about the International White Oval Sticker:
International Vehicle Country Codes.