Circumstances Panther Cougar Section [4 X Macchi 32] were completing operations in Restricted Area R527. Williamtown air traffic control [ATC] commenced co-ordination procedures with Sydney Sector 2 for clearance to transit civil airspace in order to recover the section to Williamtown. Due to Sydney ATC internal co-ordination requirements, Sydney Sector 2 were unable to issue a clearance immediately and themselves commenced co-ordination with Sector 1 and arrivals South. At the same time Sector 2 advised williamtown ATC to contact Sector 1 direct for further instructions. Williamtown ATC then contacted Sector 1 only to be told to contact Arrivals South. After establishing contact with Arrivals South, Williamtown were then told to contact Sector 2. As a result of this uncertainty the 4 X MC32 aircraft were diverted clear of civil airspace by Williamtown ATC and the extra flight time resulted in the aircraft landing with eight minutes endurance remaining. Significant Factors 1.The internal co-ordination requirements for Sydney ATC were cumbersome and unnecessarily complex. 2.The Sydney Sector 1 controller did not obey the principles of point to point co-ordination as specified in the Manual of Air Traffic Services [MATS].