I have been car free ever since I left Perth 3 years ago. I lived without a car for a year in Brisbane, but found it is a bit too hilly for comfortable cycling. The good thing about Brisbane is that there are lots of buses if you want to go away for a weekend or so up the coast.
I now live in Melbourne. I actually work at a place where I am the only cyclist down near Laverton (lots of trucks). Melbourne could be the best cycling city in Australia, it is flat and has good bike paths, but I feel it has a way to go yet. Currently I ride the Federation trail which tosses you out to truck filled roads after it finishes.
Anyway my biggest issue in Melbourne is that I miss seeing the country side, my friends with cars often go on day trips.
to remedy this, I joined a hiking group that car pools. However it is too big of a group and it is hard to get on a hike.
My other problem is if I need to buy something big, usually I have to carry it from the shop. There is a car share scheme starting up in Melbourne though, so that will be useful for that maybe.
I cycled through Europe for 6 weeks last year and thought it was much better for living car free, obviously it is smaller and more dense, the cities are more compact and there are trains everywhere.
Australia needs to move away from a car culture! I feel angry when my co-workers talk about cars and how much they would like to drive bigger and gas guzzling cars!