You shouldn’t have small infatuation in Australian state (8)
I believe the answer is:
tasmania
'australian state' is the definition.
(Tasmania is an example)
'you shouldn't have small infatuation' is the wordplay.
'you shouldn't have' becomes 'ta' (both can mean 'thank you').
'small' becomes 's' (abbreviation - e.g. clothes size).
'infatuation' becomes 'mania' (I am not sure about this - if you are sure you should believe this answer much more).
'ta'+'s'+'mania'='TASMANIA'
'in' is the link.
Can you help me to learn more?
(Other definitions for tasmania that I've seen before include "Van Diemen's Land" , "What a relief!" , "Pacific isle" , "Asian ATM in Australian federation" , "Island state off SE Australia, capital Hobart" .)