Driving, as in the case with most major cities, is a hassle. Sydney is high on traffic and low on parking. Fortunately, Sydney has an efficient public transportation system. The coolest method of moving around the city are the ferries. Ferries not only go to destinations, but they also provide a great way to cruise the harbor for sightseeing.
Water taxis are also available, though at a higher cost than the ferries.
Speaking of buses, they run all over town. Oddly, they don't stop at designated places if no one needs to get off there, but they can be flagged down like a taxi. Sydney also has a CityRail system, with most fares costing under three dollars. These, too, run 24 hours, although less frequently after bar closing time. One option more loathed than used by Sydneysiders is the Monorail and Light Rail systems.