Couldn't live without

Hug a Bub around the $100 mark, a crafty person could make one great for putting a fussy bub to sleep.
Bonds wonder suits, they are fantastic and have built in mittens
if using disposables aldi sell really good nappies and are heaps cheaper than huggies.
Big wraps, but they cost so I would suggest (for cool weather) buy a couple of metres of flannel and hem them yourself.
Good Pram, I'd be lost without mine
you need enough sheets for one set on the cot, one in the wash and a spare in case of another change needed.

Not needed
Crazy bath lotions etc
crazy clothes (although i am guilty to a degree)
I didn't buy our bath, but we are hardly using it 'cause it's too heavy for me and DH just has a shower with him.
any clothing that buttons up at the back - whats with that?? whoever designed it clearly has never dressed a newborn


There are heaps of baby shops with second hand bits and pieces you can pick up. There are of course some items, car seats in particular that are better bought new. It's fairly cost effective to hire a capsule from the council for the first few months.
As others said you may have people wanting to buy you gifts and let them buy the silly things, save your money for the things you really want.

Good Luck