wow, I thought vic was the nanny state not the whole of Australia. I'm sorry but people get hurt everyday. You don't stop driving a car because people crash, people won't stop riding bikes because they fell off, and I'm sure people won't stop exercising their dogs by riding bikes because they could get injured.
Life is full of risks, dogs get run over by cars all the time, they get stood on, they get (accidentally) boiling water poured over them etc etc. If you take the necessary precautions with yourself and your dog (i.e training your dog to run calmly and controllably with the bike, wearing protective clothing etc etc) you are taking risks, but they are known, understood and prepared for risks.
riding a bike is dangerous at all times, anything can happen, are they going to outlaw bikes soon as well? what about scooters? skateboards?
I know there is a lack of common sense as a whole in the community, but everyone here is an intelligent, caring individual who has their head screwed on straight. Just think about these things first
"In order to really enjoy a dog, one doesn't merely try to train him to be semihuman. The point of it is to open oneself to the possibility of becoming partly a dog." - Edward Hoagland