There is no right or wrong answer to this question, as the best option depends on your personal circumstances. If you apply in Australia, you will be granted a bridging visa, allowing you to remain in the country during processing period, and you will also be eligible for temporary Medicare benefits. On the other hand, lodging the application overseas may result in a shorter processing time. Besides, if you have ongoing work commitments overseas and are not in a hurry to relocate to Australia, applying from overseas may be the more suitable option.