What about northern NSW beaches - you could stay in Byron and still do lots based from there including driving up to the Gold Coast for a day etc!! Then lots of time at the beach as well as going in to the hinterland and Nimbim - (don't forget your shisha )
I was going to suggest an island resort too....no car hire or travel, so no worries about car seats etc. Self-catering accommodation but there's takeaways and restaurants if you like. Some resorts are all inclusive.
My brother swears by Hamilton Island too, though not sure how kid-friendly it is (they didn't have kids last time they went). He said wildlife (birds, not sure what else) came right up to the house they rented and there was a zoo there too...
Not sure how $$ a week in Fiji or Vanuatu is now.... we stayed in Fiji on Denarau Island about 7 years ago now and there were heaps of free activities each day (pool, beach games, coconut dehusking, dancing to watch, basket weaving and traditional crafts etc), you could easily fill in a week without needing to do organised tours. Meals were included, there was a free bus around the island and the bus/taxi into Nadi was 50 cents! There's also a kids club.
We were going to head to the Gold Coast for a bit of a break. It ticks your shopping criteria and we were going to stay at Paradise Resort as it looks amazing for kids and not too expensive. The Gold Coast isn't everyones cup of tea though and might be best to save that for when your kids are older and do the theme parks etc. If you are still keen on an island, Tangaloma (sp?) on Morten Island is good, bit expensive though, they have dolphins you can feed!
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