I camped there for a week with ~2yo, 5-6 years.
It was nice, taps on each site, $1 hot showers, flushing loos (to keep the ladies happy) and fully fenced to keep the dingoes away. It is very shady, as ddr notes, which was nice in hot weather.
Yes, it's a fair way from the beach, but unless you're fishing, the beach is only one of many destinations on Fraser. We visited so many lakes, crossed over to Kingfisher etc, as well as all the Eastern side beach attractions.
It was not expensive, and for that trip was well worth the money. I'd consider camping on the beach as well, but recommend Central Station.
The only dingo we saw was on the beach, on our way to the barge as we left.