The server location is an important decision when deciding where to host.
The proximity of the server your site is hosted on to your customers effects how fast your pages can be delivered to them.
If your site is mainly for Australian audience then you should choose to host in Australia, if your site/products are for a world audience you should choose hosting in the USA as this will make sure your site is delivered fast to all countries.
Site location also plays a part in SEO (Search Engine Optimization) search engines more likely to list your site higher in the country you have it hosted in.
