ebay/paypal proceses and requirements aside, the original question is

does Australia Post compensate for lost unregistered parcels?

If I get to my local PO this morning I will ask them the question. I will also ask if I can have a look at their Registered Post prepaid envelopes. I am tired of the conflicting information so if it came to it I personally would refer back to whatever is in hard copy print eg info on the envelopes and info on the postal guides.