You could open an N26 account when you move to Italy (you can’t use your Australian residency, so you should wait until you have an Italian address). The account would be in EUR and would be excellent for spending in Italy and abroad.
For transferring money from Australia to Europe, check out TransferWise Borderless. You can activate both AUD and EUR (and more) currencies, with local bank details in each. So, to transfer from your local Australian bank account is just a local transfer, then you can convert to EUR directly in the TransferWise app. Then it’s just another local “SEPA” (normal EU) transfer to get the money to your N26 account.
You can also keep the money in your TransferWise account (you also get a debit card attached to it), but the transaction costs (especially for paying bills and friends in the EU, plus spending abroad) are a little bit higher than if you use N26 directly.
Hope that helps!