Hi, 
You can dropship in Australia.  I have it setup for international orders.. 
Further, I used to sell directly to Australians on a very regular basis, particularly the "TV projector kit"..  
 
 
I don't believe it would be illegal..  I have never heard of dropshipping being illegal in any country.. 
 
Here is the item I used to sell to Australia all the time..  I have probably sold it to 2000 Australians, maybe more.. 
 
For putting up auctions, use these materials here: 
When you have sold it, you buy it from me here and tell me to ship it to your customer: 
 
 
Of course, there are tons of other items as well, some very expensive: 
 
 
I would prefer to avoid selling guitars or name brand items, as I have done it in the past with guitars and its expensive..  Usually $67 to ship to Australia..  With the name brand items, the issue maybe your electricity and setup..  I think you are on a different voltage and use different plugs than us.. 
 
 
 
Sincerely, 
 
Anthony W. 
 
--- On Mon, 12/15/08, Krystle krystle <krystle319@aaaa.com> wrote:
From: Krystle krystle <krystle319@aaaa.com>
Subject: RE: Powerseller Ebook Website + Ebay Business.
To: "Anthony W. " <optasia_mail@yahoo.com>
Date: Monday, December 15, 2008, 4:50 AM
Hi andrew! When i said my n95 i meant nokia n95 because my pc broke. I wont be
able to access an actual pc untill thursday. With setting up drop shipping, am i
allowed to dropship in australia? I think it might be illegal lol thanks 4 being
helpful and patient with me. 
-----Original Message-----
From: Anthony W. <optasia_mail@yahoo.com>
Sent: 12/15/2008 5:56:02 AM
To: Krystle krystle <krystle319@aaaa.com>
Subject: RE: Powerseller Ebook Website + Ebay Business.