My post above is still valid so she would need to live in Australia to be eligible to file a divorce claim.
Yes, you are correct, the applicant needs to be in Australia at the time of filing. They do not however need to be a permanent resident et al.
In relation to property settlement, and even children's matters, the above also applies. However, depending on where the property is mostly held (here or overseas) or the country the children have a primary connection to (we are not referring to international abduction cases), while the Court can make orders, the Court may decline. Preferring matters to instead be settled in the overseas jurisdiction. All depends on the facts before the court.