If they are a bit lumpy like pimples or causing newer leaves to curl over it may be psyllids

Here is a link that might be useful: lilly pilly psyllids

Those pimply spots are caused by psyllids and once they are there, ther is little you can do about it -
unless you want to take each affected leaf off and burn it [though the little buggers will likely no longer be there.
Their numbers have probably increased because of the great summer wet we have had this year in SEQ. There are
no chemical remidies for them, though there were some inconclusive trials done last season.

The only prevention I can think of is a soil drench using a good quality formulated Neem Oil mixed with water
and poured regularly around the based of the affected tree [if you only have one or two] as soon as the weather gets hot.
I have plenty of lillypillies with the problem and have learned to live with it.

From my experience, most people just live with the Lillypilly psyllid as not much can be done.
Of the Lillypillys, Syzygium paniculatum (Esp.) & cvs. and
Syzygium australe seem to be most prone to the psyllid while Acmena smithii & cvs are concidered the hardiest of the Lillypilly group.

Which do you have? Syzygium or Acmena.
Syzygium = X shaped scar on the bottom of the fruit (Berry)
Acmena = O Shaped scar on the bottom of the fruit

If you cant live with the psyllids, try replacing them with
Acmena varieties over a period(years) so as not to lose tree amenity to your place

Im in Sydney and have two potted Lilly Pillies, one of which started showing the pimples on the leaves. I have had good success with removing the affected leaves and spraying the foliage with Confidor every two weeks until all signs are gone.

I now have a problem with the same plant which is dropping leaves and the leaves on whole branches are drying out and dying. This has been steadily occuring over a couple of months and I am concerned the plant will die. It is still producing new healthy growth. I will try to repot as it has been too long since the last. Both plants live on the balcony facing north and have been quite happy till recently. A nearby hebe passed away a few months ago in the same circumstances, slowly wilting and dying branch by branch while the remaining branches stayed healthy until it was their turn. From first signs to eulogy took about 4 weeks. Any one have any ideas?

Hi, I also have the same problem as Steve, my lilly pilly's leaves are slowly turing brown/dying dropping off one branch at a time has been going on for months any help would truly be appreciated