T3 to T1 Sydney - When does customs occur?

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Since you're connecting Qantas to Qantas, you're entitled to use the free Qantas transfer service. Basically:

On checkin in Melbourne, you'll get boarding passes for both flights and your bags will be checked straight through to SCL. (This means they'll be transferred through SYD for you, you don't need to pick them up or anything.)
On arrival at SYD T3, look for the Qantas Transfer Lounge at Gate 15. From here you can take a Qantas bus directly to T1.
On arrival at T1, go up to Departures and proceed straight to security (yes, again) and immigration.

And yes, if Qantas sold you connecting tickets, 90 minutes is sufficient, although only barely (IIRC that's the minimum allowed). You should be OK if your flights are on time, but even if it comes in late, Qantas will put you on the next flight -- although for SCL, that might mean waiting a day.

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T3 to T1 Sydney - When does customs occur?

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