Just spent the weekend in Newcastle and found a cracker of a hobby/toy shop.
There are model trains, areas you can test out the Thomas the Tank Engines and model toys. It has a great range of stuff for all ages from jigsaws, lego to Sylvanian families. Their speciality is model kits and trains, but a treasure trove for kids as well.
Easy to spend lots of time here.
55 Hunter Street,
Newcastle, 02 4929 1140
For more information visit: http://www.frontlinehobbies.com/