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I know nothing about EQ mounts, but you certainly need to point to the South Celestial Pole, rather than South Magnetic Pole.
For Melbourne, the South Pole is 11 deg East of magnetic south. So, when facing towards magnetic south, the South Pole is 11 deg to the East (your left hand). (Sorry if that is too simplistic, but I keep forgetting it myself - is it to the left or to the right???).
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