Is Fuzzy quoting the actual current by-law in his/her block or interpreting reports of changes to be made in NSW in 2014? The Model By-law in NSW, adopted by most blocks, gives a positive direction:
“1. An owner of a lot must ensure that all floor space within the lot is covered or otherwise treated to an extent sufficient to prevent the transmission from the floor space of noise likely to disturb the peaceful enjoyment of the owner or occupier of another lot.
2. This by-law does not apply to floor space comprising a kitchen, laundry, lavatory or bathroom.”
Bare concrete throughout living/sleeping areas would most likely fall foul of this.
Otherwise you may be opening an argument about whether your proposed action would amount to ‘installation’ through removement of a presumably deliberate concealment.