Just to clarify in section 78(3) it states “despite any other section”. It is fair to say section 78 takes priority over all other sections and this is where they are deriving “ The law allows you to drive onto the wrong side of the road or move into a red light“?
That's correct to an extent. The word "despite" literally means "without being affected by" - but when dealing with 78(2), you must also take into account the required element regarding safety.
The wording of 78(3) means that rule 78 has "conditional" precedence over any other road rule. So if you have no choice but to break another rule in order to comply with rule 78(1) or 78(2), then 78(3) effectively negates the breach. The condition however, is that you must comply with 78 to the letter, particularly when it comes to the words "as soon as the driver can do so safely" in 78(2).
So the key is that you must be acting "safely" at all times during the event. If you do anything that causes a danger to yourself or another road user, such as causing an accident or a near accident, then you would be liable for either breaching 78(1) or 78(2), or some other offence under the road rules (such as in this scenario, running a red light). Things would obviously get a lot more serious if you do actually cause an accident.
Another thing to keep in mind is that 78(3) allows you to breach the rules only for the purpose of complying with 78(1) or 78(2). If for example, you move forward through a stop line at a red light, you don't "automatically" have the right to continue on through the intersection and go on your merry way. In other words, if it's safe to get out of the way and stop, then that's what you must do - but you must also give consideration to what will happen as the traffic lights go through their normal cycle. If it will not be safe to remain where you are once the lights change, then you should move on as soon as you can safely do so, which may or may not be when you first cross the stop line to get out of the way. So as you can see, it's not always as simple or as clear cut as it seems.
The intention of rule 78 is two fold:
1. to ensure that emergency vehicles are not impeded unnecessarily; and
2. to allow drivers to break other road rules when necessary in order to comply with #1.
As long as you're aware of everything around you and you make a safe call, 78(3) will always apply. But getting it wrong could be a disaster, which is why the safety element is mandated in the law itself at 78(2).
It's also interesting to note the use of the word "must" in 78(2) - which makes compliance mandatory. So technically, if you're sitting at a red light and an emergency vehicle comes up behind you with their light or siren on, then you are actually required by law to run the red light if it's safe to do so and if doing so is the only way you can let the emergency vehicle through. Weird huh?
This law is from the National Road Rules (NRR) and has been adopted by all states and territories, so it is now very consistent across the country, but with varying penalties. The one notable difference is Victoria, where the rule explicitly includes "enforcement" and "escort" vehicles. All states and territories include 78(3) with similar wording that results in the exact same intention as the NRR. Also, as escort accreditation becomes more standardized, some states have added an additional rule regarding escort vehicles (usually rule 79A).
The last thing to touch on is rule 79, which has also been adopted nation wide. As this question originated from QLD, I'll use the QLD wording again:
79 Giving way to police and emergency vehicles
(1) A driver must give way to a police vehicle or emergency vehicle that is displaying a flashing blue or red light (whether or not it is also displaying other lights) or sounding an alarm.
Maximum penalty—20 penalty units.
(2) This section applies to the driver despite any other section that would otherwise require the driver of a police vehicle or emergency vehicle to give way to the driver.
This one simply states that you must give way to emergency vehicles. Duh, right? It provides at 79(2) that emergency vehicles have right of way despite any rule that normally requires the emergency vehicle to give way to the driver. It kind of works like 78(3), only this time, for the emergency service vehicles themselves instead of other road users. But unlike 78(3), it's not a blanket override - it only has precedence over rules relating to right of way.
If you think about that for a moment, you'll realize there's something really odd here. Rule 78(3) gives everyday motorists the ability to break
any road rule, whereas 79(2) only gives emergency services vehicles the ability to break rules related to right of way! Weird again huh? But it does all make sense.
As always, there are minor differences in wording across the country, so anyone reading this should carefully check the actual wording of rules 78, 79 and 79A (if it exists) in the Road Rules for their own state.