I second the Batemans Bay area. It's beautiful and there alot of other places to visit for day trips from there. We had an awesome time there.
Another beautiful place is Kiama. I went there with a friend as a kid and loved it. Though that was a LONG time ago now! It has likely changed....
Though it's a bit further than 3 hours (a bit less that 5 I think!) Forster is a great place too.