Margaret River
Hi,
There may be some Israelis around - I believe most of them are tourists or otherwise temporary. I don't know of any Israeli actually living there, but there might be a few.
Margaret River is a tiny country town, with lots of tourists (relative to its size, not in absolute numbers). I can't answer your questions re. lodging, used stuff shop etc. because I don't know it too well, but I'm sure there are several lodging options (probably not cheap, but may be a bit more reasonable during winter, which is about to begin, because there would be less tourists around), and maybe even a local Salvos or the like (2nd hand).
Work for students - I can't recommend anything specific, but I'm sure that the range of casual, non-professional job offers would be similar to any other small country town (shop attending, cleaning, seasonal agriculture etc.). He could try
www.seek.com.au. - under Location pick WA and under Area pick Bunbury and South West (mind you, the distances are quite big so I wouldn't look at anything beyond Dunsborough or Bussleton)
Is he coming with a Student visa or with another work-permitting visa?