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@NeilFairbrother
I think someone earlier said iWorks is bundled - then talked about Garageband. iLife is bundled and includes Garageband (music mixing and podcasts) as well as iTunes, iPhoto, iWeb and iMovie. Consumer apps, but pretty classy for all that.
iWorks I don't think is bundled and the packages are excellent value. If your produce work that's going to stay on Mac then use iWorks.
Unfortunately we do live in an Office world so you may have to get Office too. My only real complaint with Office is the price. I have yet to upgrade to the latest version. Cheap it ain't.