Yep that version is probably the best bet for you! The only difference between the Australian one and the American release is that the Aussie one is missing an extra called "The Troma Intelligence Test" which is missing from all the Aus Troma releases coz the OFLC banned it. That extra is exactly the same on every Troma DVD anyway though and nothing special, just some Troma trivia and if you get it right it flashes to a sex scene and if you get it wrong it flashes to a gore scene. And the movie is fully uncut too.
Last House on the Left:
Yep get that one. That's the same release I have (except that new pressing has a different cover than mine). It's identical to the Region 1 release but actually has an additional extra not on the American one, an extra audio commentary. And the movie is completely uncut too.
Was Last House banned for a while in Australia? Or am I thinking of something else...
Yup, was banned here in any form until last year. Lots of appeals and re-submissions to get it passed, alot under different titles to try to sneak it past as well such as Krug & Company, and alot of different cuts of it as well, but they just banned it every time. I really don't know why after seeing it. There is far more offensive & gratuitous stuff out there than Last House on the Left which is overall just a good rape-revenge flick, and totally groundbreaking too. Got passed uncut last year though for "The Horror" festival at Fed Square, a 2 week celebration of '70s American grindhouse horror classics, and got released on DVD pretty much straight after.