Country church in Australian capital (5)
I believe the answer is:
china
'country' is the definition.
(China is a country)
'church in australian capital' is the wordplay.
'church' becomes 'ch' (abbreviation on maps etc).
'capital' says to take the initial letters.
The first letter of 'australian' is 'a'.
'ch'+'in'+'a'='CHINA'
(Other definitions for china that I've seen before include "Ceramics; country" , "Make a chain in the country" , "Fine earthenware" , "chum" , "Where one regularly unloads junk" .)