I've got a welt foot ordered and hopefully it will arrive Friday. That website gave me the info. on ordering what I needed locally. If it doesn't work out I will contact cutsewservice as it does appear that they will export to Australia.
Yes there is a guide above the needle and then a needle bar guide which has material in it. There is also two small wire hoop type guides above that and then the take up lever at the top. Looks like the thread self aligns but the thread falls ever so slightly to the left of the needle before threading it through the eye.
I think that because I have been attempting to sew welt with a regular foot, I have been lucky NOT to have this problem (thread cutting) from word go. Once I get the proper feet I will reassess the problem if it still exists. In the meantime I can practice doing flat seems, adjusting tensions and see what effect that has and try some of the other threads that came with the machine.