I have sailed FNQ on two trips in July.
Coastal sailing is very average by Perth standards. Not a hint of blue water, wind chop but no swell (it's called the Great Barrier Reef for a good reason). Also starboard tack, good for practice, but if you prefer port tack worth considering. Yorkie's Knobb just north of Cairns is the pick. BIG local scene, lots of Euros, even a kite shop. Some good accomodation options locally .......you can get by without a car.
Islands will give you a cleaner wind, Lovely water quality, but cost more. Again, protected from the swell. Most economical is Green Is just south of Cairns. Have a look at
www.greenislandresort.com.au/I have sailed at Lizard Is, but its serious $$$$$$. Very pretty, again flat water.
If you're serious, you need to be boat based. I have sailed the north Coral Sea from a great yacht (
www.charterworld.com.au/fullycrewed/serica.html)
To be honest, an amazing holiday, fantastic kiting where no one has been B4, but extra hastle as you always launch from the boat. Does give access to reef breaks.
Better still, have a look at
www.offshoreodysseys.com/I have sailed and kited with Gavin in Fiji, and this winter he's in the Coral Sea. Depending on dates I'll be there this winter!!

I expect a big discount for the free plug Gav