Put the heat back on Education Department and tell them that CASA refuses to recognise their Education Standards and what are they going to do about it?
There may also be some legal avenue of forcing CASA to recognise Australian education standards. Maybe the education department can help.
Education is like money it's only worth something if it is accepted by someone. Some companies in non aviation industries refuse to hire people from particular universities or only from others. The onus is on on the supplier of education to have their qualifications recognised.