With the Aussie dollar I feel your pain regarding cheap places to sleep (AUS$1=US$0.64 looks a whole lot better now though than the AUS$1=US$0.50 I survived with in 2001).

Once again I was going to suggest the Hotel Royal Phare which is the only hotel I've paid to stay at in Paris (the other was in a tour). It's currently listed at 70 euro for a double delux with shower which is about AUS 122. http://www.hotel-royalphare-paris.com/English/frameset.html

But if you normally backpack, perhaps you can tell us what price range you're looking for? And what sort of facilities i.e. private bath, toilet down the hall etc. Because otherwise I might suggest hostels listed in guide books, or other cheapies. That being said, I've just had a quick look on Rick Steves' graffiti wall for hostels and in Paris there are some big warnings, and some recommendations: http://www.ricksteves.com/graffiti/graffiti29.html

Recommendation: Hotel Caulaincourt a private twin room with shower & w/c, for 58 euros per night. It's in a nice area of Montmartre,...All in all I would definitely recommend this hostel/hotel. Their website is http://www.caulaincourt.com Metro: Lamarck/Caulaincourt on line number 12. (Looks to be 60 euro now)

Warnings: Multiple bad reports for Hotel de la Paix in Paris

And I also found these recommended links for hostels and backpacking (can't speak to them personally): also recommend these websites: http://www.geocities.com/europedeluxe (good advice and links); http://www.bugeurope.com (hostel and attraction reviews); and http://www.backpackeurope.com (all around good advice). :) Megan Brisbane, Australia