Heh... under current Australian law, it's not legal, but it's one of those things "everyone" does.
Plans have recently been declared to create "fair usage" copyright provisions for music, which have not existed up until now, whereas they have existed for printed material for education purposes etc.
The Australian recording industry in the past has declared that although they pursue prosecutions against piracy (bootleg selling), they haven't attempted to pursue individuals for copying, for their own purposes, recordings which they have legitimately purchased.
Pleased to have been a Microsoft MVP (Windows Desktop Experience) 2007/8, 2008/9