Loving room designed in Australia (7)
I believe the answer is:
amorous
'loving' is the definition.
(similar in meaning)
'room designed in australia' is the wordplay.
'designed' is an anagram indicator (designed with the letters).
'in' is an insertion indicator.
'australia' becomes 'Aus' (abbreviation).
'room' is an anagram of 'moro'.
'moro' put into 'aus' is 'AMOROUS'.
(Other definitions for amorous that I've seen before include "characterising a romantic sort" , "Lustful" , "A US room used for loving" , "Showing or feeling loving feeling" , "Like lovers" .)