Australian here. It was customs and don't believe a word of their bull****. Ask them for their proof. They won't be able to suply it. They may supply a photo of them cut, but that's not proof they didn't do it. Time and time again I hear of cigars coming into Australia, opened by customs, cut down the middle (to check for whatever) then a bill for duty. This story is NOT unique, they are trying to worm their way out of it. Stick to your guns for all of us who face this situation. If we all push against them they may finally stop cutting our cigars up.
Down here in the apple island I reckon that's exactly what they are aiming, cut it completely.