Bio risk is definitely the reason that the WA govt has given as to why the waste can't be returned. It's been law for years and applies broadly to everyone. This issue was covered here back in the day and it will be available online if you don't believe it. The malaysian minister would be well aware of this and knows there is zero possibility that it could be returned.
The waste is not regarded as radioactive internationally, including Australia because the radioactivity is way too low. The radioactivity of the waste is less than a banana and you can eat that! Malaysia have their own definition of radioactivity which is 10 times lower than the international standard. This is why it's shipped through Perth in bags and shipped internationally but not labeled or treated as radioactive. When it arrives in Malaysia, hey presto, it's radioactive (according to their unique definition) The concentrate shipped from Australia has the same level of radioactivity as the waste, very very low, there is no change.
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