Hi, I have today heard from Waverley Cemetery. Whilst they do charge for carrying out a search for grave locations, they did actually confirm the following for me :
"A quick check of the records shows a listing for a N M Merrall (aged 8 days) interred in a common grave 5 December 1917. Common graves were used for multiple interments of infants or for destitute burials. Common graves are unmarked and can not have any memorial stone placed on the site". 
So I think my next step is to order the transcription of the marriage certificate to confirm it was definately my Alfred who married Daisy Gouge / Doig.
I would also like to confirm when Alfred Merrall arrived in Australia and who he travelled with, as there is still the conflicting information on his death transcription, saying 'time in Aust Colonies, 18 years in NSW (which would have been 1925), but if he did marry Daisy Gouge, that would have been in 1916!! and his daughter born in 1917! 
Can anyone please give me advice on where I could find out this information? Unfortunately I have no idea when he would arrived in Australia or on what ship, etc. All I know is that he is shown on the 1901 Leicester Census, England.
Thanks.
FEK33
