Can they take your Music away?

You can only receive so many warnings before the police will have to do something about the noise. Just like driving infringements like driving without a licence/suspended licence do that too often the police can impound your car. I think the police did the right thing, they want the area to be peaceful and anger free. With the music being loud an lots of complaints about it it's the police's duty to the community to put an end to the complaints.If the police do nothing it won't look that good for them, the PM and the premier etc won't look good because they are in control of the justice system as well and they have votes to worry about. If the people aren't that happy with them they won't get voted back in.

If there are multiple complaints and the people refuse to listen to warnings then yes, the authorities are allowed to confiscate the music system. It's happened many times before at a house in our neighbourhood where there were many house parties, and the neighbours reported them.