There are plenty of nice Mk3 VW Golfs for that sort of money - the '94-'98 Mk3 Golf GL has a 2.0-litre 85 kW engine, the same one used in the previous Euro GTI. Golfs make ideal second cars for the classic VW enthusiast (I drive one to work every day, as well as keeping the Kombi) and you can stay in the VW family. The four-speed auto is brilliant for the morning and afternoon peak hour (or you might prefer the five-speed), and Golfs are quiet, comfortable, reliable and remarkably roomy. You could also get a Karmann-built Mk3 Cabrio for around that money.
Once you get to around 9K you start to get into Mk4 Golf territory, but there's nothing wrong with the Mk3 - I'd take one over a 318 BMW any day (so did 5.5 million Europeans).
Have a look at
http://www.carsguide.com.au/ and select Volkswagen and Golf, and your price range, and away you go.