I agree, Australia was in a very poor strategic position in early 1942 due to the legacy of PM Bob 'British to his bootstraps' Menzies' wholehearted commitment to the Commonwealth war effort. When the new Curtain government wanted to bring AIF troops home to face the very real threat from the Japanese he was bitterly opposed by Churchill who wanted to keep them in ETO/MTO. Churchill even at one point unilaterally ordered troopships carrying returning diggers to divert to Burma to protect British interests, bugger Australia! By that stage we had already lost the entire 8th Division and supporting forces due to Brit incompetence in Malaya and everyone's misplaced confidence in 'Fortress Singapore' and the Royal Navy.
It was only after El Alamein that the last major AIF units returned home to fight the Japanese, who by then had been stopped anyway and were on the strategic defensive as a result of Midway, and the New Guinea and Solomon Islands campaigns.
My late father fought at Tobruk, El Alamein, New Guinea and Borneo (the latter a useless campaign, akin to the wasteful 'mopping up' operations designed to keep Australian forces occupied), and like most Aus veterans didn't talk about it much (too horrible to remember really, especially New Guinea and Borneo; and no debriefing or counseling in those days), but I remember him saying how they were pissed off (not his words!) cooling their heels in Palestine in 1942 when they wanted to get back home and fight the Japanese!
Anyway, for a very good overview of the air warfare of the crucial 1942-43 period, an excellent read is
Fire in the Sky - The Air War in the South Pacific by Eric M Bergerud (2000). Well written, tells the story from both sides, good info on tactics etc, and really is essential reading for anybody interested in the Pacific war. I purchased my copy from Amazon, but apparently you can download a free copy from here
http://ebookee.org/Fire-In-The-Sky-The-Air-War-In-The-South-Pacific_592891.html. (I haven't checked out the site). Meanwhile 'Hurricanes vs Zeroes' sounds like a worthwhile read.