Fish were biting out of Lennox Head (3)
I believe the answer is:
cod
'fish' is the definition.
(type of fish)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for cod that I've seen before include "to be paid for when it arrives" , "A foolish sort of a fish" , "Cash on delivery (abbr.)" , "Edible fish" , "Hoax (sl.); fish" .)