Longest geographically connected Australian power system is undergoing an unprecedented transition, under the effect of increased integration of renewable energy systems. This change in generation mix has implications for the whole interconnected system designs, its operational strategies and the regulatory framework. Frequency control policies about real-time balancing of demand and supply is one of the prominent and priority operational challenge requiring urgent attention. This paper reviews the Australian electricity market structure in presence of wind energy and its governance. Various issues related to increased wind generation systems integration are discussed in detail. Currently applied mitigations along with prospective mitigation methods requiring new or improved policies are also discussed. It is concluded that developing prospective frequency regulation ancillary services market desires further encouraging policies from governing authority to keep pace with current grid transition and maintain its security.