Just updating this in case someone stumbles upon this post, like, ever...
According to Immigration, the ATO will not process with ANY visa active on your immigration account, also a tourist visa. This is what you need to do. They say it takes 4 weeks to process. I've been waiting for 2 weeks now
REQUESTS FOR TEMPORARY VISA CANCELLATION ONLY – There is no fee for visa cancellation.
You can do this by either completing Parts A, C and D of the Form 1194 or sending a written request by email to Super.Hobart@border.gov.au with the following information:
a clear statement that you wish to have your temporary visa cancelled
your full name and date of birth (and those of all people who hold a visa because they are a member of your family unit, or hold a visa only because you hold your visa.)
passport number when you visited Australia
subclass of the temporary visa you wish to have cancelled
current residential address
the date that you departed Australia.
If you hold a permanent residency visa, please note there is no provision in the Migration Act 1958 to cancel permanent visas at the request of the client.
You will be notified via email once your visa is cancelled.