Dick,
I strongly suspect that you are not in possesion of all the information or the FULL transcript. I am. I have also interviewed personally, at length both the FIS 5 FSO and the Williamtown controller.
The delay between MDX being offered to track via WLMTN is 5 minutes and 29 seconds, 08:50:31 (offered to track over WLTM) to 08:56.00 (turning to Craven).
During that time, there was near constant communications between FIS 5, Sector 1, and Williamtown, to get clearance through the Williamtown zone.
Betwen 08:52.22 and 08:53.00, Williamtown controller said to FIS 5 that 7 or 9 was available. It then went to Sector 1, who informed them that their sector was non-VMC.
I would hardly call the area SWS of Taree 'Tiger country', which it the area he would have had to hold in. Out to the west, over the Tops, certainly. But the area he would be required to hold in, and only for another 30-40 seconds, is quite ok.
Most importantly, I reckon the fact that the pilot was not able to talk directly to a radar controller did contribute to the accident. That was because when the pilot turned away from the correct heading, the flight service officer didn’t tell him because the FSO did not know!
MDX was not under radar control, and was outside the area of responsibility of Sector 1 and 2. He was essentially "OCTA" in that area. Also, the Williamtown Radar only operated out to 48nm.
As I said, I suspect that you are operating under not having all the information regarding this. If you like, PM me, and I will share with you everything. It will very much open your eyes about MDX!