I can't find Walter STEARN on Austcemindex and if you are searching his name with the cemetery it will bring up 0 inscriptions ie no entry. Try searching his name without the cemetery and nothing. Only 229 transcription entries for Waverley cemetery. I think you have misinterpreted the results.
Inscriptions to 2002 on the CD published by the SAG.
Cando
Agree, Cando. 0 inscriptions to me means no headstone inscribed/ transcribed , i.e. he's not in the 229 that have been transcribed. Did SAG publish a Cd with only 229 inscriptions??
Waverley Cemetery has already confirmed to the OP that he is in that cemetery. It's a huge cemetery, from my memory, and from some general photos on another site I found, very crowded. Remember that Austcemindex is an index of inscribed/transcribed headstones, not a record of all 'inhabitants'. Though you found an inscription somewhere? Was that from the SAG CD?
All a bit strange

Dawn M