You should ensure that your insurance will provide at least the level of coverage required for the purpose of your stay. Your health insurer could be in either Australia or your home country.
Attachment A in the
health insurance standard template letter (138 kB RTF) is a guide to the level of health insurance we will accept as adequate.
If you do not have adequate private health insurance, your visa application could be refused or your visa could be cancelled. Obtaining health insurance does not guarantee that your visa application will be granted.