Thanks for all the comments. I am going to contact the buyer to give him the option of getting a full refund now if he wants it. If he is prepared to give it more time for the parcel to arrive then even better.

No guarentees that I will get any money back from Aus Post either. I lodged the claim yesterday so lets see what they do.

With regards to pack and track, I was told there is tracking online but if it gets lost no claim is possible. My local post office said pack and track is the biggest waste of time as it costs the same as registered which gives the same amount of tracking on Australia Posts system plus you get $100 insurance included. Also registered requires a signature on delivery whereas pack and track could be left at the door which means anyone could pick it up if no one home. With no insurance I would lose both the money and the items.

I guess I just have to wear this one and chalk it up to one of those things.