Would a Nokia N95 8gb 3G work in Australia if i purchased it outright in...

It sure will!! My friend bought that exact phone when we were holidaying in Hong Kong, and he just inserted his Sim into it when we got home, and it works just fine. It's a heck of a lot cheaper in Hong Kong, too. I bought a bunch of XD memory cards and batteries for my Digi-Camera while I was there, too. It's crazy what we pay for stuff like that here in Aus.
Nice phone, but beware that it has a bit of lag at times, since the N-series are basically small computers. I had the N-73, and the lag was intollerable at times. I went back to the 6500-Slide... best phone I've had!!

Ya sure your Nokia n95 8gb mobile will work in australia with telestra or any other GSM sim only if it is unlocked one .Else if the phone is locked to some other network provider then you can't use any other GSM sim in it until you unlock .You can easily unlock your phone using sites like OnlineGSMUnlock.com they are rendering network unlock code for all mobile models at reliable cost .You first check that whether the code is available for your country and network provider .If yes then pay for it and unlock your phone then freely use it with any GSM sim ...