Upvote:2
It is also true for private Vila. Wherever you stay in Indonesia, even just 1 day, you need to register (also true if you are Indonesian).
The man renting the house can do it for you. He just needs your passport info.
All in all, police in Bali is said to be rather lenient. So don't be to scared about paperwork.
Just one important thing: they are known to control the driving licence of any white man riding a motorbike (they would give you a fine, but of course no receipt).
I know you can get a temporary Indonesian licence from your Australian licence, but I have no idea about the procedure.