Richard,
I'm flying a Jabiru UL-D out of Innisfail in FNQ for $160 per hour, so your $165 sounds pretty reasonable to me, given your location, aircraft and probable demand. Many others have commented about the training received being more important than the hourly cost, and at the 11 hour mark of my own training, I would concur.
My instructor, Ron Watson, ensures that each flight is: 1) safe, 2) building on skills already gained, 3) enjoyable. What this means in relation to the hourly cost is - I don't care. On my salary, any flying is a luxury, so I would rather be getting good value for money, rather than splitting hairs over $150-175 per hour.
If you are enjoying your flying with your current instructor, that's good. If you're a little unsure, consider other schools/instructors.
Enjoy the journey - every training moment is an adventure. :big_grin:
Regards, Mathew