Mt Beauty is in a valley surrounded by higher terrain.
"Mr Bland also recalled that Tawonga Gap was in cloud. The lookout at Tawonga Gap is approximately 550 metres (1,800 ft) above Mount Beauty airport. Reference to these landmarks supports the lower end of the range of Mr Bland’s estimated height of the cloud base and I am satisfied the lower height of 2,000 ft “at best” is more likely. "
The coroners report is pretty damning of RAAus