The magistrate also told the court there was 'ongoing conflict' between Dawson and Lynette before her disappearance, revealing that Lyn was going about her normal life, preparing for a birthday party and readying her daughter for school at the time.
He also described Lynette as not being 'financially viable' at the time she vanished and noted she did not pick up her pay cheque.
'That’s when Dawson went quite red and had his face resting on his hands,' Peel told Thomas. 'He was looking down at the ground.'
Thomas also revealed NSW police are investigating allegations of abuse by high-school teachers at Dawson's former workplace Cromer High on Sydney's Northern Beaches, indicating there could be further arrests.
'I’m hoping that any victim that comes forward, even on historic matters, gets justice, our child abuse crime squad are looking into all of those matters,' NSW Police Commissioner Mick Fuller said.
Dawson will be extradited to NSW and is expected to be charged with homicide, before fronting a Sydney court.
Fresh statements from at least two new witnesses led to Dawson's arrest on Wednesday, December 5.