I guess I really want him to be happy and I'm struggling now to come to terms with choices we've made for him on the assumption that he was smarter than he is. I've been totally guided by others in his education and thought that they were the experts now I'm not sure and maybe if we do move to Aus we should just let him go with the flow? Thoughts??
I'd say that grade acceleration shouldn't be guided solely by IQ scores. The fact that this one set of scores came out MG doesn't mean that skipping him a grade was the wrong move.
I, too, have a child who appears much more HG than her one set of IQ scores indicate. She, too, looked on the IQ test she took at 7 like a MG child albeit her scores were more divergent than your ds' (higher highs, lower lows). She, too, has skipped a grade and no matter what her "true" IQ, it was the right choice for her.
There are some MG children who need or do well with grade acceleration as well. Personality, drive, and other things come into play.
If, for other reasons, you feel that moving him ahead was a poor choice (say he starts to struggle academically in multiple areas), there is always the option of having him take a year off to homeschool/deschool and having him go back the next year at the grade level he would have been without the skip.
Please don't beat yourself up. My dd whom I mentioned above had some lower self concept scores at 7 as well. We did take that seriously but she really is doing well now (age 12) and has been for a while. It isn't a sign that he'll always be unhappy if you make changes to better support his self image.