Get the Shelter retipped and save your money to buy a better tonearm.
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Only interested in MC. I'm in Sydney. As I mentioned, Denon DL 103R can be gotten for $330 out here.
Phono stage is a Lehmann Black Cube with external psu. That could be upgraded too, & the table, but funds don't permit that at this stage.
Re getting the Shelter retipped, that means shipping to the US. Not impossible but lotta mucking around. Who does the retipping btw?
In the USA I have used Soundsmith and Phono Cartridge Retipping both with excellent results. In England, Expert Stylus does retipping, with good reviews, but I don't have personal experience. Just type cartridge retipping in google or Audiogon for additional comments and their websites.
That Rega tonearm is good for the money, but will not let you achieve optimal performance from your phono cartridge.
Garrott Brothers retipping service has been owned and operated since 1992 by Audio Dynamics in Melbourne, AU.
You can also facilitate a Garrison retip through Decibel Hi-Fi. The linked page includes their retipping rates, which are well within your budget and give you back your cartridge worth around $1700 AU.
I would not replace a Shelter 501 with a Denon 103 AND the 103 is not a good cartridge for that light to med weight tone arm. A much better choice would be a Dynavector 10X5 MC (2.5mv) for that arm, IMO. Lots of jump factor with this cartridge, you cant go wrong. Keep your tonearm and change to a proper cartridge is my advice. Also, I agree re tipping the Shelter might be the best option IF your changing your tonearm (only use Soundsmith for that, imo), but that Dynavector is really nice with that arm.
I don't know what the Dynavector costs in Australia; but in the USA it's a bit over your budget. I think the Denon DL-301 MKII is a better match for your RB250 than the 103R. I really like the sound of mine on a Sumiko MMT; but it's my first MC, so what do I know.
I think re-tipping the 501 would be a tad cheaper, unless you don't like it's SQ. In that case you could sell it and add the cash to your budget and get the Dynavector or maybe even something a bit better.
I second Dynavector. A much better match for Rega arms. If you can stretch a little to the 20x2, you'd have your choice between low output and high output MC versions.
For consideration: I've seen many RB300 and RB600 arms come and go here on A'gon for well under $1000...would be a drop in replacement/upgrade for your RB250.
FWIW, I also agree that the Denon 103 would be out-of-sorts on a Rega arm. Because of it's stiff compliance, it really thrives with a much heavier arm.