Hi Melbournee,
It sounds like your PM has made an application to VCAT for possession of the property based on rent arrears. She should still attend this hearing but instead of getting possession they need to have an order that declares the premises has been abandoned.
While waiting for the hearing she should lodge a request with Consumer Affairs Victoria (CAV from here on in) for them to attend the property, inspect the goods left behind and make an order as to whether the items can be disposed of or if they must be stored (I would bet my savings that it's a disposal job!), once you have this piece of paper then you can start throwing out rubbish. I can recommend a good rubbish removal company if you don't want to hire a skip - PM me if you need any trades and I'll help if it's the right area
. For storage to be ordered by CAV you have to have a house full of pretty much brand new items and a great car!
Landlords insurance generally doesn't cover cleaning or rubbish removal, as such your aim is to keep the rubbish removal and cleaning costs as close to the bond as possible so you aren't really out of pocket.
A lot of insurance policies will charge you an excess per event. This is why you have to pay $750 in excesses. Get some quotes for the work you would be claiming on and if they come in under the excess then don't claim on your insurance.
The main thing you want to be claiming on insurance is your loss of rent. This is going to be worth your $250 excess so you receive any outstanding rent (up to the date the property is declared abandoned by VCAT), that way you still get that rent owing and your bond will hopefully come close to covering the cleaning and rubbish removal.
Check with your policy to see if gardening is included.
If your insurance policy requires a VCAT order for your claim then your PM will have to make an application for Bond and compensation (she may need to do this anyway as if the rent arrears was under the bond amount on the day of application to VCAT she can't have applied for the bond at that time).
Good luck, I hope it all turns out well and you get a great tenant in there!