Go to Waterstones and get a copy of
BUG Australia 2004 
; that will give you plenty of practical information for while you're on the road.
Although it's great to be spontanious and have no plan, it is also a good idea to have a general idea of where you want to travel.
Most backpackers fly into Sydney and head up the east coast towards Cairns visiting Byron Bay, Surfers Paradise, Brisbane, Noosa, Fraser Island, Airlie Beach, Townsville, Magnetic Island and Mission Beach en route, so this is probably a good place to start.
That is basically the party route that takes in activities like 4WDing, scuba diving, sailing and lots of beaches - just the thing if you're looking for a fun trip in the sun while still getting a good feel for the country.
Competition ensures that transport is relatively cheap and hostel accommodation is of a high standard on the east coast. There are also a lot of package deals available in Australia that seem like a good deal but can restrict your options so it is best to avoid these if you really want to travel independently.
If you have time head inland from Cairns into the outback for a different perspective. Adding on the following route is a good idea if you have time and money: Cairns-Katharine (stopping at Mataranka hot springs but there's not a whole lot else to see in between Cairns and Katherine other than the Undara lava tubes)-Darwin-Alice Springs-Ayers Rock and McDonnell Ranges-Coober Pedy-Flinders Ranges (via Oodnadatta Track)-Adelaide-Melbourne (via Great Ocean Road)-Sydney.
The Darwin-Alice Springs-Melbourne or Sydney could be done with the Great Southern Railways pass but to really get your value from the pass you would really want to take the train to Perth and back. Although if you do this you will need to budget for side trips (either by rental car or short tour) to get to places like Ayers Rock.
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