The Newcastle Beach YHA was full so I stayed at the nearby Backpackers by the Beach for one night. It is one block from the railway station, so easy to get to by train. But if arriving by car, parking outside is limited (had to park a block away in the Mall on a rainy Saturday night). The building is on the corner of Hunter and Pacific Streets.
The location is excellent, between Newcastle's main street and a short distance from the beach. There is a cafe next-door and late night supermarket not far away.
The reception is on the ground floor which is also the share kitchen and lounge. his makes for a convivial atmosphere. The rooms are up a steep steel fire-escape type stair. I was in room 7 on the third floor. There are views of Newcastle and the water from this floor.
Some reviewers complained about mosquitoes, but the room had working fly-screens. The facilities were very good for a backpackers. But then I have stayed at places where all the windows were bricked up. ;-)