Here is a great stay: the YHA in Bellingen, NSW. The staff is very friendly, and the place is simply gorgeous. It's one of the best hostel we've stayed in. They offer lots of activities in nearby Dorrigo National Park. Sleep in the extension for AU$18 and wake up with the birds singing. The kitchen was clean and very well equipped. And, even if the hostel was full, it didn't feel crowded at all.
A good place to stay!