Lady Elliot Island is fab. We went with an 8 month old and 2 yr old and had a great time, snorkelling is excellent. Island is far from luxury but very friendly and just beautiful - picture taken from the little plane on profile!
We were there for a month so did Sydney/Melbourne/coast/gold towns as well and stopped in Hervey Bay.
we are staying at Port Douglas easter weekend. i would get booking asap as will be very busy evrywhere easter wknd! We are then to Whitsunday islands, going into rainforest on the cable cars, then driving along coast all the way to gold coast (stopping off lots along way)
Am going to stay with cousins over Easter 2013 in Sydney and then have 2 more weeks. Travelling on own with 9 and 7 year olds. Want to take 7 days and go to Queensland with main aim of seeing Barrier Reef and doing some snorkelling. Want to go to Lady Elliott island to see the reef up close and experience island life. Then could go to one other area.
Any recommendations for another resort/place to go with kids?