In parts of Australia, a legendary character (5)
I believe the answer is:
faust
'character' is the definition.
(Faust is an example)
'in parts of australia a legendary' is the wordplay.
'in parts' indicates the answer is hidden within the clue (I've seen 'in parts of' mean this).
'FAUST' is hidden in the letters of 'of australia legendary'.
(Other definitions for faust that I've seen before include "Goethe's two-part tragedy" , "Goethe play" , "Cautionary tale" , "Goethe's damned soul" , "He sold his soul to the Devil in exchange for knowledge" .)