"If your objective is to do things as cheaply as possible, you will already have decided that you need to stay in a backpackers hostel. The average price for a budget or backpacker hostel is around $22 per night per person. The cheapest price on offer usually means bunking down with others in a dorm style room (usually 4-6 others)." Jims Guide to Australia 2003.
The best thing about the backpacker hostel is the opportunity to meet and mix with other like minded travellers, many of which will be able to impart knowledge from an experience that could end up saving you both time and money. Keep an open mind and these tips will become invaluable as you roam australia.
Do a little reading on Sydney before you arrive. It's a big city with loads of accommodation options. If you love the surf and beaches than consider the north shore of Sydney. Places like Manly are big backpacking areas with lots of hostel right on the beach and has a pretty active pub, cafe and nightlife scene.
Sydney has a great deal to offer, not only in terms of history, but also in natural beauty. Sydney is a beautiful rustic estuary and one does not have to go far to experience the attraction of the location. First thing to do is to purchase one of the following passes and start with a ferry ride and you will immediately begin to appreciate Sydney.
BusTripper
This is a one-day ticket for use on all Sydney Buses, except special
services. It costs $10.
Day Tripper
This is a one-day ticket for use on all Sydney Buses, except special
services, all ferries except the Manly Jetcat before 19:00, and suburban
rail services in the area covered by the Purple Travel Pass. The ticket
costs $14 and is the best value day pass.
City Hopper
This is a one-day ticket for trains and Sydney Buses within a small
central city area, the limits of which are the stations of Redfern,
North Sydney and King’s Cross. There are two types of ticket: peak and
off-peak. The peak ticket costs $6.40, while the off-peak ticket (after
9:00) costs $4.60. It is also possible to purchase the ticket from railway
stations outside the area and include return travel to the city. Rates
vary according to the length of the journey involved. You cannot break
your journey outside the CityHopper area.
Information courtesy of Jims Guide to Australia 2003.