Where to stay in New South Wales
Sydney and other cities offer an excellent choice of hotels for all budgets and tastes. There's plenty of budget backpacker accommodation in central Sydney, particularly around the Kings Cross area, while more expensive boutique accommodation can be found in The Rocks and Darlinghurst. The state is well travelled by Australians themselves, and so offers an excellent network of accommodation outside the larger cities, mostly of motel or similar class.
Bed and breakfast
These are growing in popularity. Accommodation can range from simple rooms in a family house to beachside lodges, rambling country mansions or converted miners' cottages. Many offer quite luxurious facilities and usually include a full cooked breakfast.
Basic camping is possible in most New South Wales national parks and this is a fine way to experience some of the country's best wilderness areas. Sydney itself is almost completely enclosed by parks. Caravan and tourist parks are plentiful and facilities in the larger ones are very good. A number of companies can arrange camper van hire, with a range of fully equipped vehicles.
Staying on a farm (or 'station' as they're known in the outback) is a great way to experience rural Australian life. Most places are very comfortable, offering bed & breakfast accommodation. Generally lodging is in the homestead itself or in self-contained houses on the property. Cheaper versions offer accommodation in outbuildings or shearer's quarters.
Self-contained apartments and units are available throughout most of the state, especially the more popular tourist areas. They generally come with a variety of facilities, including full kitchens, and offer a fine alternative for families and couples who prefer to self-cater.