There are laws for dimensions in NSW and that rack would mean your bike hangs further out than the allowed amount. I love the rack idea but I reckon it'd be illegal here. I have a Gripsport rack on my ute and the furthest legal point of the load is one centimeter past my headset meaning the handlebar past that is longer than the allowed dimesnion. You'd be a fair prick to book a guy for it but hey, you can't even drive a car around with an empty bike rack legally now.
If you hate your tail and your bike then yep, get a tailgate pad. They wreck the paint on your tailgate and they rub the buggery out of your bike, especially single crown forks. On paper it looks like a simple idea but they do leave some serious marks and even dents on your tailgate. If you can get a towbar mounted carrier then aim for that.
Cheers , Picked up a 2010 dual cab Triton with low kms that already has a couple of small dings at a steal that I will be using as my weekend knockabout car ,
While I wont be going out of way to wreck it , lets just say i will be prob more concerned about my bikes and will look more into that side of things ,
got a good tip off another forum , get a swimming pool noodle , cut it open length wise , place it over the top of the tailgate before putting the pad on to give it extra cushion at the point of contact with the downtube .