When some people travel to Australia, they really want to get up close and personal with the country, to experience the bush as naturally as possible, and perhaps to live like an Australian when staying in one of their cities.
As far as the cities are concerned, there are a few options in the way of accommodation for you. First of all is the traditional hotel: ranging from basic properties right up to luxurious five star. You may also wish to consider hostels if you are travelling on a budget and these types of accommodation have improved tremendously over recent decades; not quite the nightmarish scenario you may be picturing from the past. A guide to Sydney travel and accommodation are a good place to start when thinking about what accommodation may suit you and your family.
Then you may be contemplating a furnished apartment in Sydney which will give you the total freedom to come and go as you please and will mean that you can keep all of your travelling party together under one roof.
People staying in the bush will find that there are plenty of good quality hotels based in the areas that are most recommended for tourists to visit. Be aware, though, that if you head off the beaten track, standards of hotel accommodation will not be as high.
Australia is such a vast country and the choice of accommodation can be quite overwhelming. It is always a good idea to place those reservation in advance, especially where the largest cities are concerned.