recommended family living

Hi "Garf"
I have moved with kids, its not always easy.  You have a good enough budget.  As with any city, the further away from the city you go, the more you will get for your money. The rental market moves very quickly so houses can be tricky to get ahead of the rat race.
If I can give some advice, the first link you have to accomodate is "how to get to the office and where is the office"  Then shortlist areas based on commute, out of that shortlist, you need to decide on schools - there is alot more commuting too and from school than there is from home to the office - so in fact, usually the school dictates the area of choice to live in...mm hope that makes sense.
If you are working in the city, Monington is about 1.15min commute by car. There are good schools there - again I'm not sure if you want Private or Public. Either way monington is good. A little closer I would recommend Sandhurst (Golf estate - with club and swimming pool).  Even closer still, where many expats live is Brighton, or even closer to the city with good public transport links : St Kilda (young international) or South yarra (middle/upper class proffessional).
Hope that helps,
Feel free to send me a private message if you need help

Good luck - and dont worry too much about the kids - we worry more than they do, we anticipate, kids...well they just live for the day.