Hi there,
I don't think it would be The Rocks, Sydney, simply because that area had buildings from very early after settlement, densely settled in the 1840's, and Campbells Wharf and Bond Stores and also Unwins Wharehouses and Bond stores were well established before photography arrived. Also there is NO obvious Cadman's Cottage in the photo, and no wharves for the emigrant ships at the quayside. If it were The Rocks, then this photo would have been taken from about where Customs House still stands, and Circular Quay ought to have wharves in the photo, as well as the Campbell Wharves.
The Rocky Point in the photo would not be at The Rocks, (Dawes Point), for by the 1860's the stone masons had "hewed" away at that Sandstone and were at the Quarries at Pyrmont. The Cliffs at The Rocks were steeper and were also used in the foundations of many of the buildings in Sydney Town. The Argyle Cut was among the work undertaken by Convicts, and transportation of convicts to NSW had ceased in 1840's.
I think (and could well be wrong) that Admiralty House, at Kirribilli, would have been noticed if this was Sydney Cove looking across towards the distance ...
Beautiful Photo, and I wish I had been one step ahead of you and spent my own $7. Alas, I am not often in Qld.
It does remind me of the eastern seaboard coastal towns of NSW and I will pull my thinking cap down harder, and also ask some of my elderly rellies when I have a chance.
Cheers, JM