Dreamy Destinations: The Best Island Holidays in Australia

Australia is one big, beautiful island – but did you know there are a whopping 8,222 others within its borders? While many are uninhabited, some are slices of barefoot luxury with turquoise waters, white sand beaches and lush landscapes that are begging to be explored.

There’s an idyllic island for every traveller, from those who prefer to relax and rev up the romance to adventure seekers looking for high-octane thrills.

Forget your passport and grab a ticket to paradise with our picks for the best island holidays in Australia. These dreamy destinations are just a hop from the mainland, each with a unique charm.

Lady Elliot Island

Just a 25-minute flight from Bundaberg Airport, Lady Elliot Island delivers one of the best island holidays in Australia. Pristine coral beaches and crystalline waters are a snorkeler's and diver's paradise, teeming with vibrant marine life - including many a manta ray.

This eco-friendly sanctuary provides a digital detox, allowing you to reconnect with nature sans distractions. Roam the island's lush walking trails, surrounded by the enchanting reef.

Sitchu Tip: Family-run Lady Elliot Island Eco Resort offers waterfront accommodations and scenic flight transfers for a unique island adventure. Dive, explore island trails, or witness turtle hatchlings making their way to the water.

Hayman Island

When planning an island holiday in Australia, Hayman Island in Queensland stands as the perfect choice. One of the 74 Whitsunday Islands, the island offers endless natural beauty with a harmonious mix of luxury, adventure, and tranquillity.

Whether you're an experienced diver or a newbie, the Great Barrier Reef's wonders are moments away, with Maori wrasse and manta rays awaiting your discovery.

If your idea of the ultimate getaway includes lounging and dining, then you’re in luck. From yoga to private beach picnics, the island caters to all tastes. 

Sitchu Tip: For an unabashed indulgence on your holiday, bask in the lap of luxury at the InterContinental Hayman Island Resort's stylish beach house. Enjoy opulent ocean views and your private infinity pool, with direct access to the beach, and an overall relaxing vibe.

Great Keppel Island

Sitting on the southern end of the Great Barrier Reef, this island is as chill as it gets. Made up of 90% bushland, it’s beautifully rugged, with the wilderness fringed by 17 pristine beaches.

Great Keppel Island has the tropical tick of approval: white sand, azure waters, and pure peace. Dive beneath the surface to discover coral, brightly coloured fish and marine life.

Like all of the best island holidays in Australia, it's is all about beach barefoot living – dig your toes in the sand, swing in a hammock, and relaaax.

Sitchu Tip: Take a guided jet ski tour or try tubing at Great Keppel Water Sports. Refuel with a chippie at Hideaway Bar & Bistro.

Fraser Island

The indigenous people of world heritage listed Fraser Island know it as K’Gari, which means paradise – and that’s pretty spot on. As the world’s largest sand island (123km long by 23km wide), it’s a mecca for 4WD enthusiasts who love putting their foot down over the rugged terrain.

75 Mile Beach is where most of the action happens. Driving aside, the island is flush with rainforests, birds, and wildlife, and more than 100 brilliantly blue freshwater lakes, including popular swimming spots Lake Mackenzie and Champagne Pools. Fun fact: it’s the only place where rainforest grows on sand!

Sitchu Tip: Check out the Maheno Shipwreck and Sandy Cape Lighthouse, then head down to Sunset Bar for a beachfront aperitivo.

Hamilton Island

The beating heart of The Whitsunday's is undoubtedly Hamilton Island, a cosmopolitan yet peaceful island that’s all about slow and steady living.

Spend your days travelling by golf buggy (yep, this is a car-free zone) to beautiful beaches, sipping bubbly on sailing boats, teeing off at the championship 18-hole golf course, and watching the sunset before tucking into a fresh seafood feast.

Sitchu Tip: For the ultimate luxury island holiday in Australia, book a stay at Qualia. Explore the Great Barrier Reef from the Reefworld Pontoon.

Lord Howe Island

Some places are so beautiful they make your jaw drop – and Lord Howe Island is one of them. It was formed by volcanic activity a cool seven million years ago, and the result is a landscape that’s right out of a movie: think two lofty mountains overlooking a lagoon, coral pools, a string of beaches, and a lush rainforest with native plants you won’t see anywhere else.

Pack your walking shoes and relish the tranquillity – the island has a limit of 400 visitors at a time, so there’ll be barely anyone around.

It's just a two-hour flight from Sydney, but you’ll feel like you’ve entered another world and even another time, the scale and pristine nature of the island make Lord Howe feel almost pre-historic.

Sitchu Tip: Feed the fish at Ned’s Beach, sail around Ball’s Pyramid and set aside an afternoon to snorkel the island's vibrant coral reefs.

Phillip Island

It’s just a 90-minute drive from Melbourne, and has something to please every holiday mood. Over summer, families and couples flock to Phillip Island to soak up the beautiful beaches (Cowes and Smiths Beach are popular), visit wineries and watch the famous Penguin Parade, where penguins waddle from the sea to their burrows for the night.

During winter, it’s a tranquil escape from the city, whilst in October racing enthusiasts take over for the Moto Grand Prix.

Sitchu Tip: Head to Cape Woolamai to check out one of the most popular surf beaches in Australia, and to take in the scenery. Head out on a coastal hike along the pink granite cliffs to the top of the cape. Refuel with a sumptuous Italian feast at Isola Di Capri.

Satellite Island

On Satellite Island, you call the shots. It's a place where there's both a lot and little to do, making it the perfect backdrop for your one-of-a-kind adventure.

Nestled in the heart of Tasmania's untamed beauty, you can savour leisurely mornings with the serene sounds of sea birds, or take a kayaking adventure to explore the island from the water.

Cast a line from the boathouse jetty and shuck your wild oysters off the rock shelf, or venture out on one of the island's enchanting walks, like the Rock Shelf Walk or Cliff Walk.

Sitchu Tip: You can explore the entire island on foot! Lace up your shoes and witness Tassie’s beauty in three different captivating walks to discover hidden coves, cliff-top vistas, and sweeping island panoramas. 

Flinders Island

An otherworldly paradise brimming with breathtaking natural wonders, Flinders Island needs to be seen to be believed. Over stretches of beautiful coastline, you’ll find stunning natural bushland, 120+ secluded beaches and exceptional dining experiences centred around the freshest seafood, locally grown produce, and hand-raised meats.

Outdoor enthusiasts will be in their element, with endless opportunities for adventure from snorkelling and fishing to cycling through its rugged landscapes.

Experience a slower pace of life as you take a scenic drive or hike one of the many walking trails promising sprawling vistas elevated by crystal-clear waters, lagoons, and native wildlife.

Sitchu Tip: Be sure to add The Flinders Wharf, Unavale Vineyard, and the landmark Flinders Island Bakery to your foodie trail. You’ll find historical treasures at the Furneaux Museum and for snorkelling, look no further than Trousers Point.

Bruny Island

A gem off the coast of Hobart, Bruny Island is as far south as you can go before hitting Antarctica. It brings a little of the two continents together, and the result is stunning.

One day, you’ll see arctic wildlife like penguins and seal colonies; on the next, you’re exploring rainforests and ticking off some of the island’s many walking trails, spotting unique animals along the way.

Bruny Island is a foodie’s dream, and no visit is complete without indulging in its best exports: cheese, raspberries, black cherries, oysters and wine.

Sitchu Tip: For jaw-dropping views of The Neck, climb the steps to Truganini Lookout. Take an easy walk to Cape Queen Elizabeth and explore the South Bruny National Park.

King Island

Affectionately dubbed ‘KI’ by the locals, King Island is a sliver of a spot off the northwest coast of Tassie. It’s the kind of place where everyone knows everyone; stay a few days, and you’ll be greeted by name.

The island is a magnet for foodies – and it shines brightest during the annual Long Table Festival. Its green pastures produce good cheese and dairy products (a visit to King Island Dairy is a must), while its surrounding seas supply fresh seafood. Food aside, it’s famous for its nature walks and wildlife. Keep your eyes peeled for a platypus or the rare, orange-bellied parrot.

Sitchu Tip: Wild Harvest is great for sampling farm-to-table produce from the area.

Kangaroo Island

Just a short journey down from Adelaide sits this island paradise, where good food, untouched wilderness and some of the most gorgeous getaways collide.

Kangaroo Island in South Australia is a destination like no other, perfect for a romantic rendezvous, a girl's trip with a difference or a family adventure.

Known as ‘nature’s playground’, this pristine island is renowned for its abundant native wildlife and picture-perfect scenery, and this dreamy getaway is easily one of the most beautiful island holiday destinations in Australia.

Discover wild sand dunes, the bold and dramatic Remarkable Rocks and snorkelling opportunities over the ethereal Kangaroo Island Shipwreck Trail.

Sitchu Tip: Start your day with brunch at Millie Mae’s Pantry then spend an afternoon at the Seal Bay Conservation Park or swim with dolphins at Kangaroo Island Marine Adventures.

Rottnest Island

Floating 18km off the coast of Perth, ‘Rotto’ – as the locals call it – is nothing short of spectacular. Boasting around 60 beaches, all of which are secluded, postcard-worthy and perfect for kayaking, swimming, surfing and fishing.

It’s a haven for snorkellers and divers: beneath the sparkling Indian Sea, you’ll find coral reefs and shipwrecks that hint at the island’s fascinating history, dating right back to colonial times and WWII.

Sitchu Tip: The best way to explore is by bike. Be sure to stop and snap a photo with a quokka - the cute marsupial that’s unique to Rotto - and if you want to stay a little longer, look no further than the dreamy Samphire Resort.

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