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thanks everyone, I have managed to narrow it down with your help, its a hoverfly!
Nice shot. It looks a lot like Eupeodes corollae but I don't know if you get them in Australia. It is a pretty common hoverfly over here. There are several very similar species so to get a 100% ID you need to get it under a microscope usually. :)
http://en.wikipedia.org/wiki/Eupeodes_co...
No, i don't think so Christiane.. its way to small for one of them and not agressive in anyway, its only about have the size of a little fingernail