Hi Serendipity,
Have you considered the Upper North Shore, around the Hornsby area? You could probably get a Californian Bungalow around Wahroonga for $850 per week and you will be close to National Parks, good schools (public and private) and a 30 minute drive to Mona Vale Beach. Suburbs like Wahroonga are leafy, older suburbs that have a village feel, and you can get your antique/charity shop fix at the Hornsby markets.
Newcastle and the Blue Mountains are beautiful, but it's a hard drive and the roads can be dangerous. The train system here is quite poor. As a general rule, the schools in Newcastle, the Central Coast and the Blue Mountains don't tend to rank in the top 200 schools in New South Wales (primary or secondary). They also tend to have higher rates of unemployment. I'm not sure you will find many older style character homes on the Central Coast.
Good luck!
PS. If you want to sound really Australian, you need to drop the C in Macquarie, so it's more like 'Ma-quarry'!