Has he had any previous telescope experience? What does he expect to see?
In my opinion I think the Celestron First Scope is the way to go, for $99.00. It's a table top telescope designed for the beginner with kids in mind. It has a 70mm aperture but bare in mind a planet (from what I hear) will only look like a pin point of light. The Moon however will look amazing and so should some star clusters. Get him a good Moon map and he can do some serious Moon observing. You get 2 eyepieces with it plus an accessory kit. From what people in the past have said about this scope, you are better off with binoculars. But that involves steady hands and for a child that could be tricky. This will give him the pleasure of having a telescope that's not only extremely portable, there also no setting up required
Ozescopes in Melbourne ships throughout Australia, service is fantastic. Here is there site
http://www.ozscopes.com.au/celestron...-iya-2009.html
There is a video on that site as well to view it. I would though recommend getting the accessory pack with it for the extra $50. It comes with extra eye pieces and the very necessary "finderscope". He will waste too much time trying to find things without it. Read the reviews as well - many people buy them for kids starting out.