See what charity op-shops are in your area - St Vincent's De Paul, The Smith Family, Life Line, etc. Playgroups, hospitals, or local community centres often need toys, whether to use there or to give to kids who would appreciate them. Find out if anyone in your area does a toy drive for christmas (local charities or community centre might know this).

I just drop our extras off at the local op shop..

I think donating to a young mothers group would be a good idea. I am with one in QLD and they dont have very nice or good condition toys. I am in a group which is run in a communtiy centre which also give the single mothers formula for the bubs and bus tickets to get to doctors appointments. they dont get much goverment funding and often need a sponcer or donations (which dont provide much) just an idea, i hope it helps.