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' says the answer is hidden in the clue (I've seen 'in part' mean this).
'FAUST' is hidden within '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" .)