Already a Group 1 winner in New Zealand, Sword Of State was striving for an Australian Group win before he retires to stud at Cambridge Stud in the spring.
If he had his head down instead of up on the line he would have gained that victory.
He will improve with the outing, though, and could get a shot at farewell Group 1 glory later in the campaign.
While Walker had to settle for two seconds on the Gold Coast, he captured one of the domestic features when Lord Cosmos came from well back to win the Waikato Stakes at Te Rapa.
The son of Pierro was forward enough to contest the Karaka Million in January but shows the finishing kick at the end of his races to suggest he will carry his form into his three-year-old season.
He was another feature race winner trained by Te Akau ridden by Sam Weatherley, who was only at Te Rapa after the Australian campaign of his family's horse Mali Ston was cut short by a virus.
Earlier at the Te Rapa meeting, Michael McNab rode a double on Tevere and Osaka in their open handicaps to increase his lead in the national jockey premiership.
McNab is now 15 wins clear of Craig Grylls and $1.08 to win the premiership when the season ends on July 31.
"I thought the good books of rides might dry up but I had a good one and as long as I can keep getting those then we are on track," says McNab.
The first jumps race of the winter went to Ginger Too who relished the good track conditions at Te Rapa to have too much speed for hot favourite He's Ric in the $30,000 Hurdle. What was concerning for jumps fans and the industry was two of the eight final acceptors had to be scratched because only six riders were available for the race.
With the numbers of local jumps riders being hit by lack of regular opportunities, others leaving to work in Australia and border restrictions having made it harder for overseas riders to winter in New Zealand, the jumps community is going to need to come together soon or face issues when more horses are ready to race but can't find riders.