Byron Bay is a quite expensive place to visit. Thus, it is not a surprise that all regular hotels (not youth hostels with dorm beds) are at least near or more than AU$200 per night.
Dolphins' Inn is much cheaper, at around AU$140. I think it is quite clean, the room is big (and my room even has a handicap access bathroom, and thus, quite spacious) and the bed is comfy. The tradeoff is that it is relatively far from Byron Bay's commercial center and the main beach. It is at least 20 minutes walk to the center, and maybe nearly 30 minutes to the beach.
There is a nice cafe just next door. However, it closes in mid-afternoon. For dinner, you will need to head into the town.
The Wi Fi works quite well. And if you have more than one computer (or you need to use Wi Fi for both your computer and your smart phone), you can get more than one passcode from the front desk.
Overall, it is a good place if you have a car. There are a lot of parking spots. If you arrive by bus or other public transportation, it is a bit walk from the bus station. However, it is definitely walkable to the town center and the beaches.