Hey ShellyBelle,
I've been here in Bali a few years now with my wife and children (13 yo), so I can sure give you then answers from my experience anyway. Are you sitting comfortably?

1. In my case my employer organised everything, and from what I can gather that's fairly normal. Still had to attend various Govt offices for obligatory photographs, signatures, fingerprints and so on, but local businesses mostly use an agent that walks you through the whole process (much quicker than trying to do it yourself).
2. Initially the visa's to get here were processed by the Indo embassy in Sydney and took a about 3 weeks (several years ago, so check again). After arrival, the work permit and KITAS took about a month, but no problems.
3. Wages will vary a lot depending on the industry, company and experience. But cost of living is really good here, so you'll probably end up ahead (but not living like a King, no matter what they say).
4. Lots of accomodation available in lots of areas. No problem. Tourism is still recovering, so plenty of empty apartments and villas still about and quite competetive. Having a realtor as a boss will really help. Beware though, it is customary to pay 1 year rent in advance here (not compulsory though - we didn't).
5. Here's the best news. Your kids will love it here. Heaps of sports and outdoor activities, all pretty cheap and easy. My kids reckon they are in the middle of a vacation that has lasted 3 years so far, and it would take a bulldozer to get them back to Aussie to live (although they love visits back down under).
I was worried before I came here just like you - that's natural. I have met people here who hate it - if you want Bali to be Australia, you'll be dissappointed again and again. But if you accept (and enjoy) it's differences and relax, I hope that you (like me) will find it the best thing you could have done for yourself and your family.
Cheers
Mike