It's been 2 weeks. I said one week since I asked for feedback. I will consider it a lesson learned, unless this guy meets with an unfortunate accident. :
Then again, this guy has no bad feedback and lives on the other side of Australia, it should have been delivered about a week ago by now but perhaps if it were returned to sender (for whatever reason) I'd get it back about now.
I doubt the guy is lying about not recieving it so it's probably lost in the post.
You just can't win as a seller, you either do what I do, offer cheap postage with risk of stuff like this happening, or you charge higher postage costs just to have tracking info which may deter a lot of sales because of the postage cost. PayPal and eBay already makes plenty money out of me alone, they should be paying this guy back instead of me. Especially since PayPal still owe me money from an item that I didn't recieve but couldn't get the funds from that particular seller.