The pilot had planned to ferry the aircraft to Rockhampton in accordance with the Visual Flight Rules. He had also arranged to return to Sydney the same day by airline, so as to be able to spend Christmas at home. In order to connect with the return flight, the ferry flight needed to depart before dawn. A weather forecast obtained by the pilot the night before the flight indicated conditions would be unsuitable for visual flight to Coffs Harbour. The pilot said that when he arrived at Bankstown Airport early the next morning he assessed the weather as being slightly better than forecast. Consequently, he departed at about 0350, without lodging flight details, and proceeded to fly north up the lane of entry. Passing Patonga the weather started to deteriorate. Light drizzle associated with a decreasing cloud base caused him to consider whether to continue or return. He then noticed that the directional gyro began to malfunction and would not stay aligned with the magnetic compass. Whilst trying to rectify that problem he also noticed that the ADF indications appeared to be unreliable. With his attention diverted by the instrument problems, the pilot lost visual contact with the coastline and decided to return to Bankstown using the magnetic compass as a heading reference. Whilst in a timed turn to the left the aircraft collided with trees and was destroyed. After regaining consciousness, the pilot managed to extricate himself from the wreckage and walk three kilometres to a farmhouse, over hilly, heavily timbered terrain.