...getting insurance? My travel agent is telling me I should fork out £200-£300 for travel insurance but Australia have an agreement with the UK where all UK residents are covered for any medically neccessary treatment. This is all I require. I am not bothered about personal belongings or money as it is usually impossible to claim anyway and I will be travelling light.I don't car about hijacking or stuff, I am prepared to take the risk.

Why should I bother getting insurance? Anyone know anything about this or travel to Australia without insurance themselves?

All I really care about is that I am covered if I break a leg or get ill or something which we are with Medicare.

As mentioned although your medical treatment in Australia will be covered with Medicare (you normally have to sign only when you need the treatment) additional costs such as transport home are NOT covered. ( Nor are the other covers under a travel insurance policy - delay, cancellation, baggage/ money/ passport/ accident/ liability etc).

Many insurance companies do rate Australia/ New Zealand lower than the rest of the world because of the Medicare Facility - try http://www.portwood.co.uk/ for quotes from a range of companies.

Its entirely up to you whether to take out travel insurance or not.
I am not certain how true it is that you would be covered by medicare for treatment within Australia.
I do know that from first setting foot on Australian soil our 457 visa people (from Pakistan, Philippines etc though) have to have private medical cover. Only the correct website etc can provide you with accurate details on that.
Travel insurance would cover you for such things as flying you back home on your becoming quadriplegic following a motor accident etc.
Its a bit like household insurance - you can take your chance or you can take the insurance- its up to you to assess the cover and the risk.