Travel
Luxury vs low-cost: Choose your own Aussie island escape
You don’t have to go far to find your perfect island holiday – Australia is home to stunning island escapes that cater to every kind of traveller.
By Bron Maxabella
There’s something about an island getaway that feels like an instant exhale – ah, yes, breathe out! Whether you’re dreaming of complete luxury with all the extras or a simpler stay where nature does the talking, Australia has an island for every kind of escape.
From private villas perched above coral reefs to off-grid beach shacks with nothing but wombats for neighbours, this list of island stays covers both ends of the travel spectrum.
So… will you go luxe or laid-back – perhaps both? Time to choose your own island adventure.
The dreamiest island escapes when only the best will do
1. qualia, Hamilton Island, QLD
Why go: Tucked into the secluded northern tip of Hamilton Island, qualia is one of Australia’s most luxurious stays. With architect-designed pavilions, private plunge pools, and world-class service, it’s a haven of calm, beauty and indulgence. Everything – from the fine dining to the spa treatments to the panoramic Coral Sea views – has been designed to soothe the senses and elevate your stay.
What’s special: This adults-only resort is the gold standard for barefoot luxury in Australia.
Vibe: Serene luxury with exceptional service.
2. Capella Lodge, Lord Howe Island, NSW
Why go: Set on a UNESCO World Heritage island, this eco-chic lodge offers spectacular mountain and ocean views and fresh island cuisine.
What’s special: A total guest list of just a few lucky souls at a time.
Vibe: Understated elegance with a side of serenity.
3. Pumphouse Point, Lake St Clair, TAS
Why go: Set dramatically in the middle of Tasmania’s deepest lake, it offers adults-only stays in a converted 1940s hydro station. Floor-to-ceiling windows look out onto misty forests and glassy lake views, and every room includes gourmet larder provisions and a warm, minimalist aesthetic.
Whether you’re relaxing by the fire or cycling through alpine wilderness, this is wilderness luxury at its most atmospheric.
What’s special: While not coastal or even technically an island, Pumphouse Point still feels like a true island escape.
Vibe: Moody and magical.
4. Bedarra Island Resort, Great Barrier Reef, QLD
Why go: A tiny, adults-only retreat with a maximum of 20 guests. Think private beaches, gourmet dining, and doing absolutely nothing.
What’s special: With only 12 villas and no kids, this ultra-private retreat is a couple’s dream.
Vibe: Castaway fantasy meets 5-star comfort.
5. Haggerstone Island Resort, Far North Queensland, QLD
What’s special: A truly remote, all-inclusive escape on a privately owned island near Cape York, Haggerstone Island offers castaway luxury at its finest. With just a handful of hand-built beachfront villas and treehouses, it’s a personalised, all-immersive experience with gourmet meals, daily adventures, and direct access to the untouched northern stretches of the Great Barrier Reef.
What’s special: This remote island paradise was handbuilt by Roy and Anna Turner.
Vibe: Remote, raw and ridiculously special.
6. Satellite Island, D’Entrecasteaux Channel, TAS
Why go: This tiny island in the magnificent D’Entrecasteaux Channel, can accommodate up to 8 guests in a summer house, boathouse and luxury bell tent. That said, you might want to keep this tranquil treasure all to yourself.
What’s special: The entire of Satellite Island is exclusively yours. Need we say more?
Vibe: Rugged and romantic.
7. Berkeley River Lodge, Kimberley Coast, WA
Why go: While not technically on an island, Berkeley River Lodge offers the same level of remote, over-water seclusion that island lovers crave. Think oceanfront villas with uninterrupted views, gourmet dining, guided hikes to waterfalls, 4WD tours and boat rides up the gorge. With just 20 villas, it’s intimate, exclusive and unforgettable.
What’s special: Accessible only by air, it sits on a remote stretch of the Kimberley coast between a river and the Timor Sea – completely off the grid.
Vibe: Barefoot indulgence meets wild adventure.
8. One KI, Kangaroo Island, SA
Why go: A beautifully designed 5-bedroom luxury house with its own private beach, a private chef, and up-close encounters with wildlife like kangaroos and sea lions.
What’s special: This luxe serviced lodge is all yours, complete with a private chef and epic wildlife and coastal views.
Vibe: Private escape with abundant nature.
9. Elysian Retreat, Long Island, QLD
Why go: A solar-powered, all-inclusive, adults-only retreat in the Whitsundays, offering gourmet dining, yoga, spa treatments and endless sea views from every villa.
What’s special: Getting there is a 10 minute helicopter flight from the airport on Hamilton Island.
Vibe: Boutique, sustainable and blissfully off-grid.
10. Banubanu Beach Retreat, Bremer Island, NT
Why go: Located off the coast of Nhulunbuy in East Arnhem Land, Banubanu is a luxurious eco-retreat set on a remote island surrounded by turquoise waters and cultural richness. With just a handful of beachfront eco-tents and elevated bungalows, it offers intimate, all-inclusive stays that combine gourmet meals, fishing, turtle spotting, and deep rest.
What’s special: The retreat is run in partnership with the local Yolŋu people, adding a meaningful cultural dimension to the experience.
Vibe: Wild, remote and soul-nourishing.
Affordable island escapes that don’t skimp on charm
1. Palm Bungalows, Hamilton Island, QLD
Why go: Tucked among palm trees with access to resort facilities, these cute bungalows are affordable, comfy and full of charm. Each standalone bungalow comes with a breezy deck, kitchenette, and modern coastal style, making them perfect for couples wanting comfort and convenience.
You’ll have access to island pools, restaurants, and free shuttle transport, all while feeling like you’ve got your own little slice of paradise.
What’s special: Access to all of Hamilton Island’s amenities.
Vibe: Laid-back tropical island life.
2. Hotel Bruny King Lodge, Bruny Island, Tas
Why go: These up-market, standalone cabins out the back of the Hotel Bruny offer just the right amount of style and substance. You’ll forget you’re on a budget as you eat your way through the island’s cheese, wine and oyster trail.
What’s special: Each cabin has a private deck with incredible views of the D’Entrecasteaux channel and Satellite Island.
Vibe: Gourmet-meets-wilderness weekend.
3. Longreach Bay Units, Rottnest Island, WA
Why go: Rottnest offers stunning beaches and a car-free, cycle-friendly getaway. These simple beach cabins are mere steps away from the beach and enjoying sunset drinks on the generous verandah are an absolute given.
What’s special: Quokkas galore!
Vibe: Classic Aussie beach life.
4. The Island Accommodation, Phillip Island, VIC
Why go: Go for the famous penguin parade and blowholes, stay for this ultra-cheap, award winning self-catering accommodation. There’s a massive rooftop deck offering spectacular 360 degree views – the perfect place to chill out and watch the sun both rise and set.
What’s special: The famous penguin parade is 20 minutes up the road.
Vibe: Cute coastal charm added birdlife.
5. Great Keppel Island Holiday Village, QLD
Why go: Stay in a rustic but comfortable cabin right on two postcard-worthy beaches. The snorkelling and hiking are excellent and Geoff, the owner and host, is one of the friendliest guys around.
What’s special: This throwback stay is metres from the sand.
Vibe: Ultra-friendly old-school charm.
6. Maria Island Penitentiary, Maria Island, TAS
Why go: Set inside a restored 1830s convict-era building, the Penitentiary offers rustic, back-to-basics accommodation in one of Tasmania’s most spectacular national parks. With wombats grazing outside your door, coastal cliffs to hike, and no cars, shops or Wi-Fi to distract you, it’s the ultimate digital detox. Rooms are simple (think bunk beds and fireplaces), but the surrounding natural beauty and historic atmosphere are unforgettable.
What’s special: The iconic Painted Cliffs.
Vibe: Wild, windswept and wonderfully unplugged.
7. Bounce, Magnetic Island, QLD
Why go: Okay, this might be a backpackers’ hostel, but hear us out because it’s excellent! It’s located in the eucalypt woodland, 4-minute walk from Horseshoe Bay beach. You can book your own private ensuite bungalow, but the shared facilities located in open-air buildings are clean and generous too. You’ll be set to enjoy the island's many activities, both on and off sea, all just a ferry ride away from Townsville.
What’s special: Almost 80% of the island is national or conservation park
Vibe: Island hideaway.
8. Allure Stradbroke Resort, North Stradbroke Island, QLD
Why go: Just across the road from beautiful Home Beach, Allure offers stylish, self-contained beach shacks nestled among native bushland, making it perfect for couples or groups looking for a peaceful island stay. It’s relaxed yet well-appointed, with easy access to beach walks and local cafes.
What’s special: Slow morning and sunset strolls.
Vibe: Straddie has a vibe all of its own.
9. The Haven, N’gari, QLD
Why go: Tucked away on the calm western side of K’gari, The Haven is a charming, eco-conscious hideaway offering off-grid cabins just steps from the beach. It’s simple but soulful, with breathtaking sunsets, abundant birdlife, and a strong connection to the island’s natural rhythms. Perfect for those who want to truly switch off and soak up K’gari’s unique beauty.
What’s special: Fraser Islands only adults-only retreat.
Vibe: Peaceful, pared-back and deeply grounding.
10. Antechamber Bay Retreats, Kangaroo Island, SA
Why go: Set on a private coastal property spanning rolling hills, bushland, and beach frontage, Antechamber Bay Retreats offers beautifully rustic lodges and heritage cottages with sweeping ocean views. You’ll feel blissfully off the grid but still surrounded by comfort. It’s a quiet, authentic slice of Kangaroo Island perfect for couples or friends wanting space, stillness and sea air.
What’s special: Think wood fires, wine on the deck, and local wildlife wandering past.
Vibe: Coastal countryside charm.
Feature image: Hamilton Island/Lean Timms
More destinations to add to your list: