Better areas for snow boarding in Australia

Thredbo is probably a good bet for them . . . there is a YHA there, which should offer good clean accomodation at far less than normal resort prices.
The rates online go to end May, $29 pp per night 4 room share, but you can bet winter rates are somewhat higher.
Generally self catering with good sized kitchens etc to keep costs down.

http://www3.yha.com.au/Hostels/NSW/Snowy-Mountains/Thredbo/

I haven't skiied or stayed at Thredbo, normally we hit the Victorian alps Falls or Hotham, but I have walked through there on the Aust Alps Walking Track, and it's beaut terrain for all levels of skier.
We did go to Perisher Smiggins one year when there was no snow in Vic, and that was BIG compared to Falls at the time.

That said, there are cheaper places in all resorts in Australia, and all generally have runs to suit all levels of ability, so I wouldn't worry about that too much . . . maybe Google - Australia ski - and look at the accomodation listings at various places.
Look for value lodges, self catering, there are usually quite a few options at Vic resorts.

Here is a map showing the very close proximity of all the NSW ski fields . . .
http://www.aussiesnow.com.au/nsw.html

MM,

In http://www.aussiesnow.com.au/nsw.html I found this in regard to Perisher:

" most of the slops are very genital " !!!

There are a number of suggestions and comments one could make but no doubt they would all attract the ire of the mods.

I hope they have a good time :-)

Cheers

Do you or your son's mate's parents have any association with clubs who have lodges on the snow? This might be a cheap option where they can be self contained and on the snow.

Check with Bruce and Ros at Wilderness Sports about backcountry. They can give some good guidance and rental gear to get away from the expensive accommodation and lift passes if your son is interested and they have some snow/backcountry experience.

Wilderness Sports Jindabyne

If they want to get bunks in the YHA they will need to book soon. It is very hard to get into during winter as is the backpackers in Jindabyne.

Kosciuszko Mountain Retreat, Sawpit Creek, is another option with a variety of accommodation. It is inside the national park so they don't need to line up for hours waiting to get through the park gates and in past years they have run a shuttle bus from the car park at Sawpit Creek, 2 doors down, to Perisher so they don't need to worry about parking, snow chains or getting snowed in.

KMR

I have camped up there in my tent on the snow for full seasons while working in the resorts and it is not so bad. If they have good gear, which they can hire, camping short term at Thredbo Diggings could work. It is inside the park, just a short walk through the bush to the Skitube train to Perisher and Blue Cow and about 10kms down the valley from Thredbo. It was free camping a few years ago but that may have changed. There is also camping at Island Bend up near Guthega.

Hope they have a fun and safe snow trip