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.

http://auspost.com.au/media/documents/AP_TCs.pdf

Ap have changed the format of the terms and conditions to a pdf format

page 55

clause 73.1, .2 and .3 expains APs compensation scheme.

the word discretionary (IMO) is generally misunderstood

ie if your item meets the parameters in the clauses and AP also concurs then the claim is not discretionary it is automatic.

Claims may not be paid if  AP proves that  the item was delivered or that with a damaged item claim that it was improperly packed then they MAY not pay any compensation or be liable for it