I have found more info on my grandfather, but still not enough to give me all the answers.
He was born to ELLA HAZELWOOD and Willam Heal(e)y in 1881 in wangaratta vic and
It seems he had a brother(OR HALF BROTHER) and sister (HALF SISTER)
His brother sister Elizabeth was born in 1879 and James (JIM)his brother was born in the same year as him (1881)to Ellen Agnes (Russell)and William Heal(e)y also in wangaratta vic.

I did think the mothers may be the same person until i found this info out, but now i'm starting to think not.
William and Ellen married in melbourne in 1876.
Ellen Anges (Russell) died in 1888 in Richmond (Melb aust)aged 32 and the family disbanded soon after.

What did my grandfather (Daniel)do from 1888 until 1905 when he married my grandmother Lillian May Gaston in Nhill Vic Aust in 1905????????????

What happened to Ella Hazelwood?
What happened to the other children?
This is the info i am trying to find out.

Also some info i have spells the surname without the "E" and some with.
A story i recollect being told some years ago was that the original spelling of the surname Heal(e)y had no "E" because my grandfather was catholic, and when he wanted to marry my grnadmother added the "E" and became a protestant.
Don't know if this is correct or not.