Minutes ago Jeff Strain, the Executive Producer made a forum post claiming that State of Decay has been refused classification by the Australian Classification Board. We are currently waiting on confirmation from the Classification Board itself, but Microsoft has informed us that Jeff Strain is correct. Yes, State of Decay has been refused classification.
“Today, State of Decay was given a Refused Classification (RC) rating by the Australian Classification Board," said Microsoft, in a statement sent to Kotaku, "meaning that the game cannot be made available to Australian customers at this time. Microsoft is currently evaluating the options with regards to the title’s classification.
"Microsoft operates within the legal requirements of the Australian Classification Board when it comes to the rating of all its first party gaming titles and agrees that not all content is suitable for all audiences. The Australian Classification system plays an important role in ensuring that Australians can only access age appropriate games and content."
Reading between the lines, it seems as though Microsoft is considering a resubmission, but has yet to make a final decision at this time.