Going by the online programming guide, SWR FM seems to have a decent enough balance between a listenable music format during daytime hours and more alternative programming during off-peak timeslots.
Is SWR’s “70s to Now” music format too close to what commercial radio is running? That’s an interesting question. If we still had Vega 95.3 running their “40 Years of Music” format I’d probably agree, but as things stand now I don’t think any Sydney commercial music radio stations (including fringe ones like The Edge and C91.3) do a massively wide variety of music from the 70s until now - most if not all of them stick to specific niches. If SWR’s peak listening period music format was a serious threat to the viability of Sydney commercial stations, they probably would’ve complained to ACMA well before now.
As per @NDY I think for as long as SWR aren’t turning down people who want to do a specialty program, having a coherent music format during peak listening periods which fills a niche not available in the area shouldn’t be a major issue - especially if (as I suspect) it’s these hours of radio which help the station make money.