Sassafras, VIC 3787

A great spot to get away from the hustle and bustle of city life, but still close to the eastern suburbs for work.
Shopping in the local village is somewhat limited, but it does have great coffee. Supermarket options are only a short drive away off the mountain anyway, and the Ferny Creek General Store is handy when you run out of milk.
For fitness freaks, not any indoor gym options, but why would you want to be indoors when there are great forest trails to run or cycle? Trust me, you get better bang for your buck fitness wise here than on the flatlands.
Two great primary schools to choose from in close proximity (Sassafras PS and Ferny Creek PS), and a great kindergarten at Sassafras Preschool give good schooling options for younger kids, but older children need to look further afield.
Sassafras is a friendly community with great spirit and a country town feel. This really shines though with the community approach to dealing with the bushfire risk (which is only really a problem for a few days each year - the rest of the year more than makes up for it).
The only problem is parking in Sassy township on the weekends - my advice and walk in to get your coffee.