Exact meaning of "Tyranny of Distance"
Solution 1:
I'm not from Australia myself, but I believe the phrase "Tyranny of Distance" is used to emphasize the effect of geographical remoteness on shaping the country's identity. In particular, its distance from its colonizer Great Britain affected the development of Australia's culture and attitudes of its people. Your assertion is correct that the word "tyranny" is being used metaphorically to indicate something that has a strong influence.