Ah, no worries! You can put your country in your profile and it will show up in the sidebar
For a frontlit reader, Kobos are probably the most readily available epub reader in the shops - JB Hifi, Officeworks etc. You have a choice between Glo, Aura HD, and Aura. For an unlit reader, you might want to just go Sony again. Then you would have the added bonus of direct library download on the device (which I _think_ works in Australia, but you might want to double check that.) But the price to value ratio of the current Sonys isn't necessarily the best anymore**, as you note. With the Kobo you will need to download the library book on your computer via Adobe Digital Editions, and then transfer it to the Kobo. No big deal, but it is an extra step.
However, the PRS-T1 remains a solid device. If you're looking to upgrade but she is happy with a non-lit reader, you could offer her your PRS-T1 and you buy a new reader. Whatever works.
** ETA: Actually, I'm gonna correct myself on that - JB currently has the PRS-T2, not quite current but some say just as good as the T3 if not better in some ways - for $99, same as the Kobo Touch. That's a good price. However do note that the T2 has lost the audio that the T1 had.