I've been to Lakes Entrance a few times (I was there for a few hours a couple of weeks ago) and it's really lovely . When you drive in it is just BEAUTIFUL. There is surf out there, but I've never personally surfed there (always stuck to the Island or Torquay or Inverloch) so I'm not sure what it's like. You also have the benefit of the lake nearby. I think the weather can be a bit extreme from what I've heard too, it can certainly get cold! It can become very busy during the holidays though, we could barely walk through the main street it was that packed.

Have you thought about Inverloch? It's just past Phillip Island, it's beautiful and has some great surf spots. Lots of farms and things too.