I think I may have some information. First of all, some explanation of the terms:
3G == UMTS
4G == LTE
We can use the terms interchangeably.
All Apple watches (since Series 3) have been sold since around 2018 with an optional cellular radio in them - and these watches "support 3G and 4G". Even the series 9 supports 3G and 4G (no 5G support).
Saying that something "supports 3G/4G" is too vague, and we should be referring to the complete list of radio bands within that spec. E.g. UMTS 800MHz, 850MHz, 1700MHz and 1900MHz. When Telstra says they are switching off 3G (aka UMTS) it means that the 3G radio in your watch will stop receiving a signal on those bands. The LTE radio is still there and will be used. However .. and here is the catch. The older watches didn't support as many LTE bands as what Telstra are using today. Look at the Apple spec for the Series 9 watch. That model supports more LTE bands, hence, why Telstra says you'll have a better experience, than with a Series 4 watch that only has a subset. You might be lucky that where you live/work/roam, you'll have no problems with your Series 4 watch. But Telstra is telling you that you might roam into a city/area where they use an LTE band that your old watch does not support.
What LTE bands does the Series 4 support? According to GSM Arena:
1, 3, 5, 7, 8, 18, 19, 20, 26 - Europe, Australia
What LTE bands does Telstra use in its LTE radio access network?
It depends on which AU state/territory you're in
OzTowers.com.au, Mobile phone bands used in Australia. Telstra, Optus, Vodafone, NBN. 2G, 3G, 4G.
I don't know how trustworthy these websites are ... but in my estimation, bands 28 and 40 are the missing ones.
Something along those lines...