In this study, we employ the Conformal Cubic Atmospheric Model (CCAM), a variable-resolution global atmospheric model, driven by two distinct sea surface temperature (SST) data sets: the 0.25 degrees Optimum Interpolation Sea Surface Temperature (CCAM_OISST) version 2.1 and the 2 degrees Extended Reconstruction SSTs Version 5 (CCAM_ERSST5). Model performance is assessed using a benchmarking framework, revealing good agreement between both simulations and the climatological rainfall spatial pattern, seasonality, and annual trends obtained from the Australian Gridded Climate Data (AGCD). Notably, wet biases are identified in both simulations, with CCAM_OISST displaying a more pronounced bias. Furthermore, we have examined CCAM's ability to capture El Ni & ntilde;o-Southern Oscillation (ENSO) and Indian Ocean Dipole (IOD) correlations with rainfall during Austral spring (SON) utilizing a novel hit rate metric. Results indicate that only CCAM_OISST successfully replicates observed SON ENSO- and IOD-rainfall correlations, achieving hit rates of 86.6% and 87.5%, respectively, compared to 52.7% and 41.8% for CCAM_ERSST5. Large SST differences are found surrounding the Australian coastline between OISST and ERSST5 (termed the "Coastal Effect"). Differences can be induced by the spatial interpolation error due to the discrepancy between model and driving SST. An additional CCAM experiment, employing OISST with SST masked by ERSST5 in 5 degrees proximity to the Australian continent, underscores the "Coastal Effect" has a significant impact on IOD-Australian rainfall simulations. In contrast, its influence on ENSO-Australian rainfall is limited. Therefore, simulations of IOD-Australian rainfall teleconnection are sensitive to local SST representation along coastlines, probably dependent on the spatial resolution of driving SST. In this research, the Conformal Cubic Atmospheric Model (CCAM), a global atmospheric model, is used to study the impact of different driving sea surface temperature (SST) data sets on Australian rainfall simulations. Two SST data sets, one with high resolution (OISST) and another at lower resolution (ERSST5), are employed to drive CCAM (CCAM_OISST and CCAM_ERSST5). Model performance is evaluated using a benchmarking approach, indicating that both SST-driven experiments are in good agreement with observed rainfall patterns in Australia. However, both simulations exhibit wet biases, with CCAM_OISST having a more noticeable bias. The study assesses CCAM's ability to capture the correlation between El Ni & ntilde;o-Southern Oscillation (ENSO) and Indian Ocean Dipole (IOD) with rainfall during Austral spring. Results reveal that CCAM_OISST performs better, replicating observed correlations more accurately than CCAM_ERSST5. The research identifies strong SST differences found between OISST and ERSST5 around the Australian coastline. An additional experiment underscores that this "Coastal Effect" plays an important role in simulating IOD-Australian rainfall correlations, while its impact on ENSO-Australian rainfall is limited. In conclusion, robust simulations of IOD-Australian rainfall teleconnection require an accurate representation of local SST, which is related to the spatial resolution of SST products driving the model. Novel hit rate metrics are proposed to evaluate El Ni & ntilde;o-Southern Oscillation and Indian Ocean Dipole-rainfall teleconnections CCAM driven by different SST performs well in mean rainfall but ENSO and IOD related rainfall varies substantially over Australia Resolution of the driving sea surface temperature is important to simulate IOD-rainfall variability over Australia
