Thanks for the correction Ron - slipped into old habits there for a moment. I did not want to complicate the issue with actual distributions but it has already happened. So time for a more in depth explanation.
Firstly you need to understand how closely related these subspecies are. You could take any two mature animals of opposite sex and expect to get viable and fertile offspring. In evolutionary terms, all the subspecies originated from a common ancestor. The different patterns that have developed are in response to environmental selection. You only have to look at Diamond hatchlings which are marked more like a baby Coastal. The darker colour of diamonds suits to the colder regions it occupies by increasing the rate absorption of the sun’s rays. Where temperature wasn’t so important and camouflage was, you have the development of the Coastal (Eastern) Carpet colouration. And so forth.
For these different forms to develop as distinct groups, they need to be genetically isolated from one another. So some mechanism needs to exist to prevent interbreeding and gene flow between the developing differentiating populations. The barriers can be Geographic e.g. distance, a region of unsuitable habitat; Behavioural e.g. breed at different times; Chemical e.g. depend on different pheromones to stimulate sexual attraction; Visual e.g. male-female recognition is through colours and patterns. Whatever the barrier or barriers were, they now seem to have disappeared to a large degree.
A Possible Scenario
[These are my thoughts only based on logical possibility and nothing else]
Diamonds can be found along coastal NSW to the mountains almost to the Queensland border. Natural intergrades can be found south to just north of Newcastle. What this suggests to me is that coastal carpets have extended their range from Queensland to mid-NSW and that some time after doing so, the natural barrier to them interbreeding has broken down. It could have been pheromone based and one species has crossed a pheromone trail of another species at the same time as suitor of that second species comes on the scene. Looks funny but smells right, so it mates. The offspring may well react to either or both pheromones, come their turn to breed. It would seem apparent that there were pockets and areas of surviving Coastal Carpet populations but land clearing and human activities have almost certainly fragmented and reduced these, if not entirely wiping many out. I say that because the intergrade genes have not been totally subsumed by the Diamond populations. Irrespective, it is not a simple and well defined area of overlap and what applies to one area may not be the case with another.
Blue