Welcome to the forums Jack!
Your brumby sounds pretty good, and already has a lot of good modifications done already.
Check out that link that Tim has given you. Very very cheap, simple and reliable modifications, that won't put any greater significant strain on your motor.
In the ways of traction aids, best and easiest way is to source an L series RXTurbo rear diff, as they are Clutched LSD. Assuming your ratios are 3.7:1 (most common ratio on brumby), this is simply a matter of bolting it in - no fab work required.
1" Can yield an unbelievable amount of stress to your drivetrain. I have a 3" Lift kit in my L series, and decided to increase just the strut tops to 4". Ever since I did that, I broke many driveshafts!! Went back to 3" Strut tops, and the car seems happier. Even the shaft angles are something to be seen to be believed when increasing springs/struts by an inch.
Chances are your king springs are of standard height... they increase the height back up an inch to factory (read: 1989) height levels. The standard springs are quite soft and saggy, and it most well be that the standard height spec king springs (which are 33% stiffer than standard) have restored your brumby back to its original height.
You would be well suprised of your brumby's current capabilities. I would highly reccomend joining the QLD 4WD Subaru club, one of the only Subaru 4WD Clubs remaining in Australia that are Subaru purists. The NSW club is now mostly full of non subarus, and I find it quite annoying that I attend this club's meets for offroading my subaru, yet I was being put down by members of the club, that drive non subarus for owning one.
They also seem to have some exciting and interesting meets. One of the reasons I'd like to move up on north
Again, welcome to the forums, I hope you find them entertaining and informative
cheers
Alex