The breville fresca is around that sort of money with a grinder (not that I am a huge fan of it but it is ok) apart from that you need to go down to the good guys or myer and see what is in your range there. None of these machines will deliver high pressure steam but with good technique you can get great milk for your lattes.
You wont find a lot of love here for pre ground coffee as it goes stale very quickly and to get great coffee minor adjustments through the day are needed in the grind to keep the coffee tasting good so guessing when you buy the coffee just doesnt cut it. But with your budget you are going to have to make compromises.
If your not doing anything on Sunday you should come for a drive to Wagga for our Snobs catchup and you can play with some serious hardware and have a look at some cheap coffee makers which will give you better coffee than a machine and preground.