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Aidan, post: 87524 wrote:
I really would not worry about server location I have never known it to be a hindrance assuming the setup is of average speed or better!

Take a look at workathomefiles.com for example – no .com.au, not hosted in Australia, but does very well with minimal effort on Google in Oz!

Agree with Aidan on this one – your domain name and hosting are only two of the many signals that Google will use to determine if your site is an Australian site.

Google Webmasters is another signal and also the links pointing to your site is another indicator. If a series of .com.au or sites known to be Australian point to you, that helps more so than your domain suffix and hosting location in my experience.