Two cool hostels I stayed in during my journey around Oz were:
: This place is outside of Surfers a bit, but is really nice, clean and laid back. They have a shuttle into town every hour (its a 10/15 minute trip) plus a pool, BBQ, etc.
On the Wallaby
: This place is outside of Cairns, up in the Atherton Tablelands. I stayed here as part of an adventure tour. Both the tour and the hostel was great. I highly recommend it.
enjoy your trip to Oz, its a fantastic place!!