I spoke to the pilot flying the Tobago at Launy. He said that he had the Virgin aircraft sited at all relevant times and there was never ever any chance of a collision. That's how alerted see and avoid works all around the world .
The system worked as designed . Because we added the extra mode C transponder mandate in Australia his aircraft appeared on the TCAS and that was then used to reverse the proven airspace system .
Virgin aircraft fly everyday in class G terminal airspace with no transponder requirement for VFR and you accept this because that's what we have done for years. In effect your minds say that if it's the way We have done it before it must be acceptable. If Launy that day had been like Ballina there would have been no incident reported as a transponder would not have been required in the VFR aircraft. Remember the Virgin crew never sighted the Tobago. It only appeared on the TCAS.
The aircraft passed a mile apart- clearly adequate for an alerted see and avoid system in good VMC. Such separation happens all the time in 100s of G airports in Australia every day.