Australian music producer performed cover of Grease free on discs (10)
I believe the answer is:
didgeridoo
'australian music producer' is the definition.
The definition suggests a singular noun which matches the answer.
'performed cover of grease free on discs' is the wordplay.
'performed' becomes 'did' ('do' can be a synonym of 'perform').
'cover of' suggests removing the centre (only the letters which cover the word).
'free on' becomes 'rid' (to be free of something is to be rid of it. I am not sure about the 'on' bit.).
'discs' becomes 'OO' (two O's - O looks like a disc).
'grease' with its middle taken out is 'ge'.
'did'+'ge'+'rid'+'oo'='DIDGERIDOO'
Can you help me to learn more?
(Other definitions for didgeridoo that I've seen before include "One Aussies played" , "musical instrument" , "Aboriginal instrument" , "wind instrument" , "Primitive blower" .)