How many villages to visit: Four to six villages is the number I would advise for a typical trip of two to four weeks. Australia is roughly the size of the contiguous United States, and a village here often sits 100 to 300 kilometers from the next one with nothing but a roadhouse and some very committed flies in between. Pack in ten stops and you will see mostly windshield. Four to six lets each place last two or three nights, enough for a morning walk, an evening at the pub and the slow discovery that the bakery closes at 1 p.m. Time is the scarcest resource here, so spending fewer stops at greater depth gives a backpacker the most for the least frantic driving.
One stop is a trap in the other direction. A single village for a week sounds restful until the second afternoon, when you have read the noticeboard twice.
Choosing between the kinds: Australian villages fall into a few broad types, and each one costs you differently in time, money and comfort. Coastal villages are the easiest on all three. They tend to have a hostel or caravan park, a supermarket, decent coffee and a bus or two, so you spend little effort getting fed and housed. They also draw school-holiday crowds, which push dorm beds from about AU$35 to 50 (US$23 to 33) up toward AU$60 or more. For a first-timer, this type gives the best return on comfort.
Heritage and gold-rush towns in the southeast cost a little less, often AU$30 to 45 (US$20 to 30) for a dorm or a pub room around AU$80 to 120 (US$52 to 78), and the pub is the social hub. Comfort is high, driving distances are short, and the trade is that some are quiet midweek, with shops shut by late afternoon.
Outback settlements are where money and time both stretch. Fuel can run AU$2.20 to 3.00 a liter (US$1.45 to 1.95) at remote roadhouses, accommodation is limited and priced accordingly (AU$40 to 70 for a bunk, AU$30 to 50 for a powered or unpowered campsite), and every leg demands planning. Comfort drops, but so does the number of other travelers, and the sky at night is worth the inconvenience. Choose these if you have a vehicle and a week of slack.
Wine and hinterland villages are the pricey ones. Rooms often start around AU$120 (US$78) and meals are built around the idea that you are on holiday. Backpackers get the most from them by treating them as a day stop or one night, not a base.
What it costs per day and per visit: A realistic backpacker budget is AU$100 to 180 a day (US$65 to 118). That covers a dorm bed or campsite, groceries from the local supermarket plus one pub meal, and a share of fuel. Pub meals run AU$22 to 35 (US$14 to 23), a flat white about AU$5 to 6, and a beer AU$8 to 11. Cooking yourself brings the food line down to AU$20 to 30 a day, which is how most people survive the beer prices.
Per visit, the extras add up quietly. National park entry is often AU$8 to 20 (US$5 to 13) per vehicle per day, and some states offer multi-day or annual passes that pay off after about four visits. Uluru-Kata Tjuta charges AU$38 (US$25) for a three-day pass. Guided walks or Aboriginal-led cultural experiences typically cost AU$60 to 200 (US$39 to 130), and I would spend on at least one, because a local guide turns a view into a story. Renting a car or small campervan costs AU$50 to 120 (US$33 to 78) a day plus fuel, and a one-way drop fee can add AU$100 to 400. Skipping the car saves cash but costs time, since regional buses may run only a few days a week.
Safety in villages: Distance is the main hazard. Carry at least 4 liters of water per person per day on any remote road, fill the tank whenever you pass a pump, and tell someone your plan. Mobile coverage disappears quickly outside town, so download offline maps first. Avoid driving at dawn and dusk, when kangaroos step onto the road with no regard for your insurance excess.
Heat is serious in the interior and north, where summer days regularly pass 40°C. Walk early, rest midday. In tropical northern villages, saltwater crocodiles live in rivers and coastal water, so swim only where signs say it is safe. Stinging jellyfish are a risk offshore from roughly October to May. Elsewhere, obey the red and yellow flags, because rips cause most beach rescues.
In the wet season, flooding can cut roads for days, so build slack into plans there and check state road reports before leaving.
Cultural considerations: Many villages sit on Aboriginal or Torres Strait Islander land, and the courtesies are specific. Some remote communities require a permit to enter, such as through the Northern Land Council in the Northern Territory, and these can take days to arrive, so apply early. Some communities restrict alcohol, and carrying it in can lead to fines or confiscation. Ask before photographing people, and follow signs about sacred sites, including the climbing closure at Uluru, which exists for good reason.
In small towns, wave at oncoming drivers on country roads and say hello in shops. Pubs are social anchors, rounds are common, and tipping is not expected. Opening hours are short, with many kitchens closing by 8 p.m., so eat before you are desperate. Buy groceries when you see a supermarket, because the next one may be 200 kilometers away.
Last, be a good guest in places where the whole town is a few hundred people. Buy a coffee, a pie or a bunk locally, and leave the campsite cleaner than you found it.