Why was the third film abandoned?

I came across a 1992 article about Flirting in the New York Times. This is an interesting quote:

"Mr. Duigan has announced that Mr. Taylor will again play Danny in the trilogy's final film, which is to be set in Paris but won't be made until his star grows a bit older. It seems likely that Danny will finally emerge as a writer, a painter or maybe even a film maker. It's a cinch he won't be on his way up in the world of international banking."

It was also suggested elsewhere that it would be set in 1968, during the Paris student uprising. Clearly then this movie should have been made at some point in the 1990s, given the ages of the principle cast. But why wasn't it? Flirting was a reasonably big success internationally and won many awards, so it's not as if there would have been a problem in creating interest to fund it. Was it down to John Duigan's relationship with Thandie Newton? A disagreement with Noah Taylor or lack of interest on his part? I would guess that a script or at the very least an outline of a script exists somewhere; I hope we find out a bit more about it some day.