I agree, Sunfish and 43Inches, I have been with students attempting a straight stall and suddenly entering a spin with significant loss of height. Sunfish, my guess is that it was not an inverted spin - a "flick" entry into an upright spin will have the aeroplane on its back initially.
I thought the thread was about the regulatory issue, not what was safe and/or smart. VH-XXX seems to have pointed to CASA's view of the convoluted words in the current regs.