Thanks guys, so I would need to wait till June 2016 - a month before ancestral visa expiry to do the traditional ILR route
I heard the fees were going to go up so I thought I would get in before they do but it doesnt sound like that will be possible.

Hi, I am hoping I can get some advice. I first came to the UK in August 2004 on a working holiday visa. I then got an ancestral visa. I tried to apply for indefinite leave to remain when that was expiring but was declined - as I was out of the country for 100 days in Australia. I therefore had to ap...