The deceased´s brother Ghanashyam Rijal said she was hit by a car at Rock Mountain city.
Subedi´s husband Dr Phul Prasad Subedi teaches at a university there.
Subedi was living with her husband, a son and two daughters in Australia.
Rastriya Swatantra Party (RSP) lawmaker Yagyamani Neupane has said Nepal cannot establish good governance or effectively combat corruption without fundamental reforms to the judiciary.