Being a Singaporean and living in Singapore as well as experienced our own immigration system, it surprised me that Australia really did a very good job at managing their immigration borders. I have deep respect for that. I know it can be very stressful to avoid getting fines, but i think they do things logically and they really look at you and decide whether to check us further. It is considered a breeze to get clear through the customs. I declared all items like my baby's medication and milk powder. They let me through, because they know that I have nothing to hide. So what i want to say is, just declare and don't hide any food or medical items even if it is legit to do so.
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