One suggestion - Rethink your horse power. If you're kiting in any sort of breeze, 2hp won't be enough to move two blokes and their gear against the wind.

a 6hp would be good i'd say but i'd double check that.. is there tides?

I think I read somewhere that Tuggerah Lake is 2% tidal so no, not tidal. I've got a 12 foot aluminium runabout with a 9.9 HP engine and I've been buzzing round the lake when the wind was up pehaps 15 - 20 knots and the waves get surprisingly big in the middle!!!
Going back up wind in the boat I'd hug the shoreline abit - Canton Beach, Picnic Point and Chittaway Bay (not Chittaway Point) are all good spots on Tuggerah Lake and cover just about all wind directions.