To set up a location for a particular country:
  1. In the administration panel, go to Administration > Shipping & Taxes > Locations.
  2. Add a new location zone by clicking the + button on the left of the page (for example, you wish to define the location zone Australia.)
  3. Select Australia in the Countries section on the right side and click the <- button to move it to the left box.
  4. Select all the Australian states and territories (e.g. Australia: New South Wales and Australia: Australian Capital Territory) in the States section on the right side and click the <- button to move them to the left box. 
    NOTE: If the country has states, provinces or counties you should necessarily add them to the left section. If the country does not have any  administrative-territorial entities leave the States section blank on the left.
  5. Leave other fields blank on the left.
  6. Click the Save button.