Are you listing on the US ebay site or ebay.au? I just tried to create a listing on both and if I am listing on ebay.us and enter MY location as Australia, the International "ship to" countries still has Australia listed. I guess it's because the country list is a default one, and it's probably hard to change every time someone changes their location. But of course when I made the listing for ebay.au everything was fine.
Sorry I can't of more help....good luck listing!