We've moved to Bathurst, which is about 2.5 hours from Sydney over the Blue Mountains but there is a daily 'commuter' train. We came in December with the intent if only staying a few months while we settle into Oz and look for work with the aim of going to Sydney - it is much cheaper to rent here and we wanted to have some decent family time and make our meagre savings last longer before embarking on full time work again. Everything has gone so well that we have decided to stay. The schools are excellent, everything is close and there are some great affordable properties. There are a lot of people moving here (it's a city with 40k people - they are very proud of reaching that milestone!) and most of the people I have met have moved from Sydney due to affordability and proximity. Sports is good and there's a university. There's no beach, but a lakes and a big dam close by and many people have their own boats (and pools). Moving from London, it's a big change and I can't deny I miss the city, but with kids it has definitely been the right choice so far....and we've been to the beach on camping trips several times already!
Good luck with your decision!