1000/50 would most likely be a DOCSIS modem for coaxial cable, VDSL2 is for copper phone lines.
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I'm not a very knowledgeable network head sorry. I just got this warning after selecting no modem..
By selecting this option you are stating that you have a compatible nbn® modem that you will use to connect your service. If you are on an nbn® FTTN/B connection you will also need to ensure it supports VDSL2.
It might be best to call the ISP to confirm.
From how I read this diagram, if you are able to get a 1 Gbit plan then it will be either cable or fibre. In that case they will install a Network Termination Device which is the actual device that converts the signal into Ethernet. From there you can connect to your own WiFi router, or the NF20Mesh (but its modem functionality is unused).
1000/50 is not available on VDSL NBN connections (FTTN, FTTB, FTTC)
The house has FTTN.
So the maximum speed tier you can subscribe to will be 100/40
Honestly, a great modem router for this is the Telstra Smart Modem Gen 2 (model number DJA2030 or DJA0231). You can often find them unused on Gumtree or Marketplace for under $50. They are not locked to Telstra (work fine on Aussie Broadband) and come with a built in SIM card that will kick in if NBN is down.
That would be my recommendation.