After reading 4 Hour Workweek, My wife want to start living like want NOW. Rather than waiting for "retirement" We want to travel to Australia for 6-12 weeks. We have 3 children 7,5 and 1. We are looking to find ideal locations to live inexpensively and keep the two older kids in some form or school while we are there. Open to any season.
What you can do is live outside of one of the cities, but still within 1-2 hours travel - an example would be to live in or near Wollongong south of Sydney, or the Blue Mountains.
Other locations to stay in? There are loads of places, and it depends on what you like. I live in NSW, and really like the north and south coasts - go there outside of peak season (avoid summer, and the school holidays) and you'll have whole beaches to yourselves.
For school, the cheapest option would be home schooling from your kid's schools back home. In New South Wales a fee is charged by the government for non-residents to attend public schools ($5K) and it is possibly the same for other states as well.
If you're only here for a few months, I'd suggest coming in the autumn or spring, hire a van or 4WD, and hit the road - examples of places are: http://www.wickedcampers.com.au/australia-campervans/van-type/iconic-5-seater-campers.html. Find some small towns to stay in for a few days or a week, and then move on. Accommodation options - caravan parks, camping, or short-term holiday rentals are good options. I know someone who has a holiday rental in Bermagui on the South Coast of NSW.
When you travel outside of peak season you're likely to come across the "grey-nomads" (retirees) who are pretty friendly, as well as other families (local and from overseas) doing the same thing.
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Because don't have any kids & I never have any experience for travel with kids too. As per my experiences I met so many families who are from Europe traveling around with their small kids with no problems. Recently in Darwin I met couple from Germany ride a bike with their 2 small baby with trolley attached to their bike. Caravan park is good option for family too, as they have all facility & sometimes you may meet locals. Most important, make sure you avoid during school holiday which everything, every where is very expensive. One more suggestion, if you want to travel around the cheapest way is hire campervan.
Enjoy your holiday!!
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I love the 4 Hour Workweek! I've traveled through a lot of Australia and I'd recommend Canberra, which most people don't even know is the capital. It's much less expensive than living in Sydney and the schools are great. You'll be (relatively) close to Sydney and