Yep, makes perfect sense to me.
Australian Citizenship did NOT actually start to happen until 1948. Naturalisation was for "foreigners", ie people NOT born in the Empire ! So, for example Aime Verpillot who was among the lads who fell at Fromelles needed to be naturalised before he could enlist. He was Swiss.
My grandfather, born in the Colony of New South Wales in 1880's died in the State of New South Wales in 1940. He too enlisted in the AIF, his papers show he was "British Subject, native born". To me that means he was born in Australia -(it does not mean he was a "native" with Aboriginal heritage) and thus my grandfather was born a British Subject, so to his parents, one born in NSW, the other in London - Just remember that Australia became a Dominion with the Empire after WW1. When these volunteers enlisted, well - it was simply a federation of six British colonies, united under the Empire. (Sun never sets on the Union Jack - that era).
Its just the historical difference/oversight where 21st Century teaching indicates Australia became a NATION in 1901. It was still a Dominion even during WW2, so its probably better to consider that Australia STARTED down the path of Nationhood with the 1901 Federation of the Commonwealth of Australia, where six separate British Colonies were "federated" into one 'national identity'.
Briefly, and I could be mistaken with some dates or the full and proper explanation, but as I recall, After the 1901 Federation of those six colonies, well ummm It took nearly half a century for the concept of Australian "citizenship" to be separated from "British Subject". Aussie soldiers in WW2 were British Subjects, they were not Australian Citizens in any legal sense. That happened after WW2. And it was only a couple of decades ago (1980's) that the separation was further legislated in both the UK and Australian Parliaments - when Britain entered ECU or about then, that Australian born children lost any "British Subject" status, except if their parents were actually born in the British Isles.
The oath of Allegience that the Australian Defence Forces took back in WW1, and still now in 2009, well its to to the Head of State, and the head of state of Australia is Queen Elizabeth II, and that's the way our constitution has been ever since Queen Victoria signed it off. Australia is a constitutional monarchy, our Prime Minister is also one of Her Majesty's Prime Ministers. We are part of the (British) Commonwealth of Nations.
So when William Wass enlisted in the AIF (Australian IMPERIAL Forces) he would not have needed to be naturalised, as he was already a British Subject. Hope that helps, and hope others reading this will understand that there are many details I have overlooked in trying to be brief.
JM