Hi Oz experts
We'll be in Melbourne for 3 nights at the Westin hotel at the end of the Australia leg of our trip. We have a flight at 6am to Sydney then on to Auckland, so a very early start.

How much time should we allow to get to the airport, and is taxi the best way to go?

Would it be worth staying one night at an airport hotel instead of downtown and if so, which one?

For convenience and certainly the early hour, I would switch the last night to the Hilton at the airport. You will push your luggage across the elevated walkway to the check-in. It's a little high priced, and the food is really high priced, but the convenience was absolutely worth it. If you bring a luggage cart from the airport with you, you push it right onto the elevator and into your room. Major time saver.

At that hour it should only take 30 mins to get to the airport by taxi ($60 approx.) so you would need to leave at about 4.30 am. for a 6.00am flight assuming your Sydney flight is a domestic. If it is an International it means a 3.30 taxi and the airport Hilton may be worth considering.
Personally I would not change hotels as The Westin is in a great position in the CBD and gives you lots more options for your last night in Melbourne.

A taxi will take about 30 mins, possibly a bit less at that hour, SB. I've taken the 6am flight to Sydney more times than I can count. Stay on at the Westin and have dinner in town.

What's your favourite cuisine? You're within walking distance of some great eateries, from little hole-in-the wall places in arcades & chinatown, to top drawer establishments like MoMo in the Grand Hyatt.

Let's have some fun & see what we can come up with for your last night in the home of some of Australia's best cooking.

Well Flinders Lane is at your back door with Cecconis
(wonderful Italian) Cumulus and Coda (both very Melbourne and terrific food) and Taxi in Fed Square.
And then there is MoVida in Hosier Lane about 2 mins. away and that is just for starters!
http://www.cecconis.com/
http://www.cumulusinc.com.au/
http://www.movida.com.au/
http://www.fedsquare.com/index.cfm?pageID=122

Love it! Thanks DownUnder and Bokhara for helping to plan our last night in Australia -- certainly a great night for a celebration.

We love all kinds of food: certainly Italian -- but Indian, pan-Asian, French, tapas, whatever's on offer ;-) (Since we both grew up in England, I'm sure a few meat pies will be eaten while we're there, too!)

Great list, DownUnder - SB, you've hit the jackpot! You could always start with breakfast/brunch & move on for the next meal/course

The Airport Hilton is a good suggestion and nice hotel... just walk over to the departure terminal in 5 minutes. Some rooms that overlook the airport give you a fabulous view, but it is a touch noisy when the planes take off and land.

Just wanted to report back that the plan worked well. We left the hotel at 5:15, got to the airport in under 30 minutes. And last night, we had a fab last dinner in Oz at MoVida, just a few steps from the hotel. Awesome place, great vibe, and some really great tapas. Thanks for the suggestions!