[DustyDevil]

After a year's travelling in Oz, I can recommend you a couple of nice hostels.
In Mission Beach (2 hrs drive south of Cairns) there are two very nice hostels. One is the Treehouse. It is built in the middle of the rainforrest, built from trees and you see a lot of the animals right there. A lot of hammocks and a very cosy living room. No tv but pillows on the floor, cd's, boardgames, very homy.
The other hostel I can recommend is Scottys Beach House. Contrary to the Treehouse, close to the beach. Also a swimmingpool, a bar with backpacker games, nice restaurant and friendly staff (I stayed there myself for 6 weeks, but this still is unbiased advice).

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Jiska

[Penguin]

How about Sanctuary Retreat?

It's not a true hostel as there are no dorms - just double and twin rooms. However it is the same price as a hostel if you're travelling with someone else.

It is difficult to get to, and you need a car to get there. Once you find it, you have to walk about 500 metres from the car park through rainforest. I saw a huge goanna sitting on the track to the hostel when I was there, and other people saw a cassowary.

Once you get to this hostel it is a paradise. A beautiful reception building with a bar, Internet and a lounge looking out to sea over the tree tops. The accommodation is in little huts set among the rainforest.

Truly one of Australia's best budget accommodation options!