Hi Monica -
My husband's situation was similar -- leukoplakia (the white patch) initially identified as moderate dysplasia but reclassified as SCC in situ once the whole thing was removed in outpatient surgery. The ENT who removed the leukoplakia (not a cancer specialist, since my husband hadn't yet been diagnosed with cancer) was also talking about a possible neck dissection.
I encouraged my husband to seek a second opinion at a top-ranked cancer center about an hour away, and the doctor there (who sees only H&N cancers) said surgery was not necessary. My husband did have a clear PET scan, so there was no suspicion of nodal involvement. He has been followed regularly at the cancer center (supplemented with regular VELscopes by his dentist) and all is well -- knock on wood -- after 4+ years.
I don't know how the Australian medical system works, but if there is a cancer center you can go to for a second opinion, then I suggest you do so.