I can't help you with your current radio, but if it has to be replaced a VHF radio has far better range than a 27meg. In regards to the license, I would say that most users of a VHF radio don't have one. Apparently it's only some small "body" that can actually fine you for not having a license. At $300 to $400 for the course, they can go sing. 

Had the same drama mate I am switching over to vhf when I get the coin together. I know you get heaps more range with vhf I have herd that 27meg is fased out up north too it doesnt get monitered past gero....

check you antennae first before chaning out, sometimes you get reception, but no signal on an old antennae.
I have both VHF and 27meg Marine on mine, I consider it to be double insurance, as they both have postives and negatives.
More boaties have 27megs so you got a better chance of being heard when on the water and in trouble, then again VHF has a line of site range and with higher power and a repeater at Rotto you going to be picked up further out than 27 megs, also most commercial shipping has VHF as well.
If you can afford it, get both, if not go 27megs if you just around metro and no going very far out past Rotto, if you going up north and very deep sea fishing, get both!

since when did you need a license?

How ever I enquired at magnum boating in wangara about 6 months ago and they said somthing about a licence, I dont think its very policed however. While were on the subject is VHF clearer than 27meg I've had nothing but trouble with my 27meg radio.

I think the license is only nessacary if your going to be docking in foreign ports? called something like a ship station operators license.. when i bought my handheld i got told that the license is more a "training" course.. VHF is monitored by nearly everyone, including coastguard, commercial shipping, defence force and pilots, so my understanding was its more to learn the correct terminology as its an international standard.. Mandurah sea rescue offer courses, didnt enquire about the price when i found out it wasnt mandatory.. all i know is i should be heard if i transmit on channel 16, plus regular weather updates.

To legally operate a VHF radio you do need a license and there are penalties if you are found to operate one without a license.

Go the VHF, no one checks your licence, i even work in the radio industry and i don't have one and i install, repair and test them often. as for the recieving and not transmitting it could be that you are picking up someone transmittting from a higher power transmitter and you may just have a really sensitive reciever, bump the squelch up half a turn above the mute point and see if it still happens.

As for the 25W TX power vs the 4/5W of the HF 27MHz frequency, the higher your frequency with the same output power the shorter the distance you will be recieved, also any citizen band like the 27MHz and your UHF in your cars you are not allowed legally to transmit above 5W anyway but there is ways around this *wink wink* so there would be slightly better range on the VHF but if you have islands, hills etc you'll be lucky to break through with the VHF and the 27MHz will get in before it albeit with crappy quality but ina life and death situation who cares as long as someone hears you! 

If you can hear but cannot transmit, is the switch in your mic. working?

I have only VHF installed. I decided on this track 1/ because it is clearer, and 2/ because I wanted to be able to use “Digital Selective Calling”, this is a process where a text message can be sent to the appropriate receivers, either giving a short message, or when linked to your GPS broadcasts your exact position, to such people as the marine police.

It is tied into your Epirb using the same MMSI number. So effectively you have two safety systems on board.

Further if you have a buddy out in another boat, an icon of his boat will (or should) show up on your GPS if all set up properly (later model GPS’s only).

Also, I have done the licence course, and have been checked on the launch ramps twice for the licence.

The transmit of the VHF is line of sight, so the higher the aerial the better. Two power settings for transmit and generally you use low power.

The minus of just having just VHF is that the convoys and club events only use 27meg, so you miss out.

Not all VHF transceivers have DSC.

If you plan to travel north to Carnarvon you won't be able to contact sea rescue from the islands with 27meg ,Vhf does it easily even from the outside except if you are close in to the cliffs.
Exmouth monitor 27 meg but only in the gulf, not on the western side.Vhf is monitored both sides via the repeater on ch21.

grayzee, on your 27 meg you need to check your handset, most of them only plug in so if you can borrow one from another mate just to test, the other common problem is the Aerial plug in the back of the radio gets a ghigh resistance joint and requires to be cut off and replaced,  otherwise simply take your radio out and plug it into another boat to prove the radio itself is good

yep , think handset is fine as when you key mic , the radio reads TX. just no one hears. thinking about it , it must be the co ax to ariel or ariel itself .

will check it properly before binning

I used to have a problem of water getting into the hand set. A simple blow out helps tremendously. Especially in an open boat!! It was a daily practise