Hi Gerri,
The price quoted is excessive, but expect nothing less from a dealer.
The US guys on here are well intended, but in Aus we dont get a lot of imported replacement engines, and the swap over is not always a simple process, primarilly due to our strict rego and road worthy requirements.
It is worth trying for a reconditioned engine from a motor engine specialist, but you may have to try Melbourne or a major regional centre like Geelong or Yass. Make sure it is a engine specialist (ie not a wrecker) who offers a reasonable guarantee on the engine and workmanship.
Failing that, get a second quote from your local trusted mechanic. Also, try the forum OzFoz, the guys there will probably be able to give you local knowledge.