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Hey,
I travelled and worked in Australia in 04/05 and had the time of my life....so much so that I'm hoping to move there permanently next year.
The first thing I would say is that it is SO easy to travel through Aus and never really meet any Australians, so if nothing more, try to make sure you meet the locals!
Most travellers will do the Cairns-Sydney or Cairns-Melbourne East coast route, but there is much more to see and do than just the coast.
If you are on a budget, then you catch the Greyhound buses all the way from Melbourne-Cairns and the pass will set you back a few hundred bucks or so. The buses run on a prompt schedule and are the cheap and easy way to travel. If any of you drive you could look at buying a car or van between you when you get to the city, thought petrol is more expensive now than it used to. If you do drive, stick to the speed limits on the highway (and elsewhere) and if you in the bush then don't drive at night otherwise you may end in an RTA with a Kangaroo. Also know that they are really hot on drink driving over there and they often do road blocks where all drivers are breathalised - if you have a beer, then don't risk driving even if you think you are safe to do so.
Melbourne is great city to visit - quite English, with a cosmopolitan atmosphere, lots to see and do, and a nice ease into the aussie way of life. There are heaps of hostels in the city and you can take day trips down the great ocean road which is breathtaking. St Kilda is hip beach town not far from melbourne CBD and you can catch a tram straight out there - good nightlife, places to eat etc.
You can take the train from Mel to Syd in about 11 hours on the express and it is a great way to see Victoria and Southern NSW. Canberra is their capital but in my opinion not really worth the stop!
Sydney has tonnes to offer - avoid Bondi if possible as it is very touristy and nowhere near as nice as Coogee/Clovelly. Backpackers also head to Manly which you can get to via ferry from circular quay (by the opera house). Take a trip up to the northern beaches if you have time - Palm Beach is where home and away is filmed and Avalon beach is beautiful. The X95 bus from railway square takes about an hour to palm beach and the trip along the coast is pretty amazing. Head out to the Blue Mountains (you can take a trian from central station) and Darling Harbour, The Rocks, The Domain and the main CBD are worth checking out. Newtown and Glebe are also great places for going out, shops and eating out.
From Sydney head up to: Southwest Rocks (off the backpacker trail but absolutely beautiful - there is a trailer park by the beach) and then up to Coffs Harbour, Byron Bay, Brisbane (I wasn't overly impressed by Surfers Paradise), Noosa Heads, Hervey Bay (to go out to Fraser Island), Airlie Beach to Sail out the Whitsunday islands, Mission Beach (Make sure you stay at the YHA Treehouse in the rainforest) and Cairns. Cairns is a party town and I was very dissapointed, but you can take amazing trips from there into the rainforest. I would recommend the Skyrail over to Kuranda, and get the train back through the forest to the town. And make sure you get up to cape tribulation and stay at the Beach house in the rain forest, and see the Daintree river with the crocs!
Also, If you have time I would really recommend a trip out to Alice Springs - you can take the train from Melbourne-Adelaide-Alice Springs, which is epic but a great experience and cheap if you travel Red Kangaroo, and from Alice you can take a trip out to Katajuka National Park to see Uluru, The Olgas and Kings Canyon. This trip was the highlight of my entire visit!
At every main stop on the east coast route you will be met from the greyhound by a plethora of hostel reps with their mini buses touting for your business. I would advise speaking to fellow travellers going in the opposite direction for advice on where to stay. Some of the hostel chains (Koalas spring to mind) were hideous, and we opted for YHA hostels which were generally cleaner, friendly and had a more pleasant and considerate range of guests! Get a Hostelling International card before you go and you will get cheaper rate than non members.
Again, if taking day trips try and get a recommendation from your hostel or fellow travellers that have done the trip. When sailing around the whitsundays make sure you go on a smaller boat so you get chance to actually help with sailing, and beware of bed bugs (which were rife on some of the big boats where we were there).
You can either travel up to Cairns and fly back for your outward flight, or fly to Cairns and travel down the coast to Sydney which we did. Internal flights can be gotten pretty cheap with Jet Star, Quantas and Virgin Blue.
Hope that helps!
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