She returns to E. Australia (3)
I believe the answer is:
zoe
'she' is the definition.
'returns to e australia' is the wordplay.
'returns' says the letters should be written in reverse.
'australia' becomes 'oz' (informal name for Australia).
'e'+'oz'='eoz'
'eoz' reversed gives 'ZOE'.
(Other definitions for zoe that I've seen before include "___ Ball, broadcaster" , "Girl's name" , "Girl" .)