How does home-conversion insurance work in Oz?

Really depends on your financial situation, plenty here even retirees run two vehicles, the motorhome/camper and small car to run around in.
Can't speak for SA but in NSW it typically costs about $1000 to 1200.00 to register and comprehensively insure a vehicle for someone on lifetime 65% no claim discount.
No problem with home converted vehicles either, the CMCA (Camper and Motorhome Club of Australia have their own insurance scheme with good rates for campers, motorhomes and tug/caravan combo's.

Check out camper trailers instead of a camper van. With our drier and warmer climate than the UK I think you will find they are a much more cost effective family friendly means of getting out and travelling
Campers as you call them are things that are used by retirees, permanent travellers and more cashed up European "backpackers"
Have a look at the web sites for Cavalier or Cameron Camper Trailers (both Adelaide based), progressing up scale to TrakShak camper trailers and beyond. There are probably over 100 or more brands, those are just three.
There is also an article under "Topics " on this web site which will provide more details.
We do a fair bit of travelling and I can't remember ever seeing an Aussie family using a "VW style camper'
If you are into DIY (do it yourself) you can buy a basic one and outfit it yourself. There are at least two monthly Camper Trailer magazines here which have sections on camper trailer modifications.

WPB

If your thinking of converting an old Kombi van, these are now considered collectors items and fetch good money. Try www.carsales.com.au and look at what you might pay for a pre or post conversion vehicle.

Will,
You might be a lot better off with a camper trailer and a mediium SUV with room for the family and as well as being a good runabout during the week. For camper trailers have a look at http://www.campertrailers.org/ and get a feel for what's available. Then look second hand. Youll probably get a 4WD vehicle and a camper for less than a basic Kombi.
You'll love it here! Welcome aboard.
Keith

Hi wpb,
We are from uk and live in Adelaide. Like others have said, maybe look at a 4x4 with a tent or camper trailer. We just used to have a box trailer and tent for many years but now have a Adventure camper trailer, made here in Adelaide. This is great for a family and means you can leave camp setup whilst exploring or going off to the beach etc. there a some great places around sa including the finders ranges. Good luck cheers mike..

Hi Will
My father just converted a Mercedes Sprinter van into a camper / motorhome, here in Melbourne, Victoria, himself. To get it registered and insured, he had no problems. When the conversion is done you need an electrical certificate to say the 240v wiring is all ok, a Plumbing certificate to say the gas installation is ok and has no leaks, and an engineering certificate, to say the conversion it's self is ok. From memory a cost of about $2200.
Cheers
Neil

Hi Will,

Welcome to Oz (when you get here)
Difficult to recommend vehicles when I don't know your personal situation and financial resources but my take on this would be to look at getting a 2WD or 4WD car depending on whether you want to go to out of the way places or just stick to the bitumen. That way you can buy a caravan (3 kids) that can be left parked up and used when you want to go touring. A caravan rego is a lot cheaper than a motor vehicle and you will not have to take a somewhat more cumbersome vehicle for daily commuting.

Cheers
Pop

Thanks everyone who replied - really helpful input from you all.

It certainly seems like a trailer makes the most sense. I'll do some thinking now I've got some facts.

Cheers!

Will