It had to happen didn't it? After our virtual reality break-in back in Vietnam, a too-bloody-real reality one happened here in Australia. Still, we'd managed 3 months without losing anything up to then...

Our introduction to Australia came straight out of the top drawer - we touched down in Cairns at a clean, spacious and hassle-free airport (can you tell we were ready to leave South-East Asia??). The first thing to hit us was how unbelievably geared towards independent travel this place was. At the airport we had a choice of toll-free numbers to call for a variety of hostels. The one that we chose picked us up for free, gave us free unlimited tea & coffee (the small things that matter), room with fan and fridge, communal pool, equipped kitchen, laundry & free BBQ. All for A$36, or less than £15/night. What we've since realised is that most hostels offer similar facilities, but we were just amazed on our first day here.

Apart from a slightly rocky beginning patch, when we thought £1 = Aussie $4 (actually more like £1 = A$2.5!) and got a tad reckless with our cash, we've had a great time enjoying pretty much everything that England has to offer, just in larger versions/portions, which are also cheaper! Our consumption of steaks has gone through the roof, and as for fruit smoothies and Castlemaine XXXX... On the subject of beer - how great are the drive thru 'bottle shops' here? Unbelievable, you just pull up and someone will stick a CHILLED crate (sorry, slab) of beer in your car for maybe £10. What's that, about 45p/can - fantastic. We now have a set of wheels, a rather legendary '86 Ford Falcon station wagon. It's a complete banger, done over 235,000km, and we've rented it cheaply, one-way from Cairns to Sydney. Previous owner was a Japanese artist who took an enormous amount of care in hand-painting the outside of the car with what we can only guess at being signs of the Zodiac and mystical beasts. Photo coming your way soon...

Despite the attention it draws us, and the shocking state of the interior, the car has been fantastic - we've done over 4,500km so far, up north to Cape Tribulation and Port Douglas, and south to Mission Beach, Undara, Airlie Beach, Hervey Bay and Brisbane. In a few days we leave Brisbane to head down to Surfer's Paradise, Byron Bay, Hunter Valley and ultimately Sydney, by the start of next week. Part of our rental deal was that we also got camping stuff & esky (ice-box), so we can just pull over and sleep wherever. So far we've only camped 3 times, since our tent, being in similar condition to our car, is missing something vital - the outer sheet - so when it's hot we're sweltering, and when it rains, we get wet.

Done touristy stuff - saw a superb croc show near Cairns, white water rafting in Tully, sea kayaking off Magnetic Island, 3 day/2 night sailing trip on a 90ft schooner around the Whitsundays, and a day trip round Fraser Island - all great. Today we've just been to the Gabba, to watch Australia play Pakistan in the first cricket test of the season out here.

The only downer has been the theft of James' daypack from a hostel storage room on Magnetic Island. He lost passport, flight tickets, driver's licence, wallet and bank cards - the full monty - plus Katie's expensive camera. Pretty much all of it is replaceable through insurance, it just leaves a bitter taste.

Oh, the only OTHER downer has been our car stereo and the shockingly limited choice of tapes in the music shops out here. Only CDs, not tapes! Hence we've been winding along the highways (and they are LONG highways) to the sounds of the Bee Gees (in concert, no less), and the Rolling Stones. Oh for some music from this decade!!!