State of Australia (8)
I believe the answer is:
tasmania
'state of australia' is the definition.
(I've seen this before)
This is the entire clue.
(Other definitions for tasmania that I've seen before include "somewhere in Antipodes?" , "Australian island to south of Bass Strait" , "What a relief!" , "Island state off SE Australia, capital Hobart" , "Antipodean island state" .)