As stated above, you do want to be sure that you go through the foreign earned income interview. Here, you will have to repeat the amount of income that you wish to exclude to identify it.
You also mentioned that your wife has her own business. That will subject her to self-employment taxes which are not covered by the foreign earned income exclusion. However, there is a separate Totalization Agreement between the US and Australia that can exempt your wife from that tax provided she has a certificate of exemption obtained from the social security administration. If you do not have this certificate HERE is information on how you can request it.
TurboTax doesn't have direct input for the totalization agreements in the interview or step-by-step mode but you can make adjustments to the self-employment tax by following the directions found HERE.
Returns claiming that exemption must be mailed in order to include the required copy of the exemption certificate.
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