Giftodd,
Coincidentally yesterday we had quite a revelation. DH got a Nook to take on a trip and it turns out there are all kinds of free books you can get from Barnes & Noble (sorry--don't know the availability in AU, but it looks from their website that they do ship to AU). We only realized this because of course DD saw the Nook and wanted to use it--ended up reading HG Wells' "The Time Machine"--for free! And then was asking for more! So we're hoping her interest stays high, especially because maybe I won't have to trek to the bookstore so much.

Also our public library does e-loans of e-books, although we just figured out DD's interest and so haven't figured out how worthwhile that will be.