Lee, yes, as an Australian, you would need a passport to enter Canada. For the most part, Canadians and Americans can travel between the two countries without a passport, just a driver's license and birth certificate. But a passport always makes the most sense.
Don't know why RSSC collects them. Did they always? I remember them doing it in 2003, but not sure they did it in 2000. Anybody remember? I always assumed it was 9/11-related.