As it turns out, it is still illegal to rip CDs and DVDs, even if you have no intention of distributing them. Fortunately our government is doing something sensible (you could argue, for a change) and from July backing up physical media will no longer be a crime -- as long as it's for your own personal use.
Copyright holders no doubt want you to have to buy multiple copies of your media, one for each device you own. It doesn't matter if you bought a CD, how dare you try and deny them out of profit by not buying a digital copy for your phone/laptop as well! It's an outrageous tactic I know, since those of us who prefer CDs over iTunes still want to be able to make our own playlists. These massive holes in copyright law are precisely why the government has stepped in; it's just surprising it took so long.
As it stands, this law definitely falls under the category of 'not-actually-enforced.' Regardless, we commoners can now rest easy knowing that, from July, sticking a copy of Disney's Greatest Hits onto our phones won't land us a court date. [Slashgear]