I played this some time ago. The Italians are attacking with a formation of inferior quality, with no superiority whatsoever, on a narrow front. The result was quite expected. The Australians placed 2 platoons to engage the approaching Italians, which fell back after causing some morale disruption. While this was happening, the remaining infantry platoon and the HMG dug-in in front of the victory hex (1821). The delaying platoons took up position on either side behind the victory hex. The Italians, not having time, or enough luck, for recovery, arrived strung out. The Italian mortar was in able to disrupt the Australians effectively. No Italians were able to get past the block.

Since the Italian companies were binary formations it would not be unreasonable to give the Italians one more INF and one more LT. This might give them a reasonable chance of reaching the victory hex.