Depends how heavy it is. I think VIC is similar to NSW. If it's similar weight to a 1200 sedan, then it should be ok. Although my guess would be that it's too light. You would be best to to get a 1.6 turbo / supercharged toyota motor (I know I shouldn't suggest this). Or try a non-turbo SR18VE. I think the SR would be too big though.

As for the argument that turbos are only good for drag racing. I think that's rubbish.

My original stock CA18DET was driveable. I used to only use 2nd and 5th when motoring about town. If you install an oversized turbo with only a 1000rpm powerband (@5000-6000rpm), then I agree it's a drag only motor. If you size the turbo right, you can get considerably more power throughout the usable rev range. You then modify the gear ratios and flywheel to suit. If you can't get the power down, increase the weight with ballast or get better tires.

Non-turbo is only good for where registration, insurance and race-class rules apply.

Chris