We had a great stay at Robin's house in Torquay. The place is really well set out and would suit families. Robin's house has great amenities with plenty things for both young and older children to occupy themselves with.
The house is located in a very quiet area but is only a very short drive (<4 mins) down to The Esplanade with it's beaches, cafe's, restaurants etc. There's also a Woolworths and pharmacy close by.
I'd highly recommend Robin's house if you're planning a trip to Torquay.