No, it simply defines over 60% of the Australian population (including myself BTW) as not genuine Australians, then piles social and cultural pressure on said people to abandon their Australian identity to support their "heritage", i.e. genuine f**king bloodline and motherland BS in this case, "for the good of the game".
It's the same xenophobic/racist shit we had to deal with back in the day just repackaged and supported by young zealots, i.e. useful idiots, who know not what they do because they've never stopped to consider the broader social implications, and most of those that have won't speak out because they're scared of the social backlash for doing so.
Whether you realise and accept it or not, you are placing yourself in the position that the race/ethnicity of immigrants and their children and grandchildren (literally their blood in the case of second and third generations) means that they can never truly become Australian/a member of the society they've immigrated to, and will always be an outsider that resides in a foreign country and culture to some extent, and that's A. just plan f**king wrong, and B. a genuinely racist and/or xenophobic position (and those aren't words I throw around lightly).