Don't mean to be devil's advocate Kristy, but if you have the frugal skills you mention, I wonder how you have not been able to save anything to date, and how you ended up with debt to pay off. And boy, if you cannot save big time when paying $40/wk for rent, then.....
Re the diesel car, it isn't more fuel efficient than a medium sized family sedan. Though with diesel costing 10c/L more, you'd only save around $100 a year with ULP if you really only do 200km a week. Keep an eye on those trips down to Rocky or Yeppoon though. But if you look after the diesel, it should last 15 years.
As for home schooling, I know several people that do that. I have mixed feelings about it. I reckon kids that get home schooled don't learn the socialization skills often so necessary to get on with others later in life, and I really wonder if parents can reflect the negative and positive reinforcement discipline of the world. Though I understand why people are drawn to home school. I honestly believe life is about finding values to give us the greatest survival advantage. One could argue that the public and private school systems cannot have the same priority, as it compromises to meet the values of those who do not aspire as determinedly. Further, even the best schools cannot employ teachers who can draw the best out of every child's individual learning strengths and weaknesses.
Though having some insight into the public school systems of mining towns, I can understand why you might be motivated to home school.
Apart from that Kristy, consider that home schooling is not free or saving you anything. It is costing you $50k a year, an opportunity cost for you not working and improving your own work skills.