Good God Almighty...what absolutely breathtaking *stupidity*! And *cruelty* for that matter!
It may seem cruel but at the time it was the first time any offer had been made to bring the remains home at all - the option had not even been offered in previous wars. People wanted this option and so the government decided to offer it but at cost. No profit was being made - it was a very expensive process as it generally required a dedicated flight.
Part of the reason policy changed in 1966 was that the level of commitment to the war changed in that year and so Australia was now running regular troop convoys to and from Vietnam. This made repatriation of remains much cheaper (there was no longer a need to charter an aircraft specifically to do it).