Magnetic Island, just off the coast of Townsville, literally has but a handful of hostels to choose from during your stay. It is, after all, a small island, and most of it is protected national park. For the same reason there are few hostels, there are also few tourists when you consider just how amazing this little place is to truly get away from it all.
Hostels in Magnetic Island are available to suit any type of traveler. Base Backpackers is a fantastic place for younger travelers to party, especially since they run a full moon party each month. The Bungalow Bay YHA (not on this map) is on the opposite side of the island and is great for all types of travelers, including families. (You can book the Bungalow Bay YHA using the booking widget at the top or bottom of this page.)
You can find hostels in Magnetic Island in Nellie Bay, Picnic Bay and Horseshoe Bay. Dorm room beds can run as low as $17 per night, while a 2-person private bungalow can cost around $65 per night.