VH-UCI was operating on a training exercise involving asymmetric flight and had been cleared for a touch-and-go landing on runway 29. The aircraft touched down before the slight rise in the runway and the pilot was unable to see all the runway ahead until reaching the top of the rise. At this time, while travelling at about 95 knots, another aircraft was sighted crossing the runway, in front, from right to left. The take-off was continued and the aircraft cleared each other by about 250 metres. The other aircraft, VH-TFE, had been cleared to taxi but instructed to hold short of runway 29. The pilot acknowledged this instruction but thought he had been cleared to cross the active runway.
