Although it is quite shallow compared to other parts of Sydney Harbour, Balmoral does at times produce some TOP SHELF fishing.
During the Summer months there is run of pelagic fish that harass the shoals of bait that congregate in the region and during the approach to Winter this area has produced some monster Jewfish. And if neither of these two fishing drawcards get your attention you can always drift with Soft Plastics for Flathead over the sand (but that's only if the Leatherjacket don't eat them first).
The best place to launch at Balmoral is probably by the children's playground on the southern end of the beach. This will put you on the closest path to the Naval Wharf area, which is where many AKFF'ers find success. WARNING: Stay away from the restricted waters around the wharf itself (marked with yellow buoys), or you risk being hassled by the security patrol there, and even potentially arrested.
Another nice thing about the beach at the southern end is that there is a grassy, gentle slope right to the beach.
If you plan on fishing Balmoral, you need to get there early or on a weekday. Quite simply, the competition for parking anytime after 8:00am on a nice Summer weekend means you will spend the entire morning driving around, not fishing. However, there is always plenty of parking available at 5:30am - and the two hour time limit on street parking doesn't start accruing until 8:00am, making for some good time on the water.
Balmoral is located in Mosman, which is one of Sydney's toniest neighbourhoods, but that doesn't mean I would leave any valuables lying around in the car.
As mentioned above - one can head out from the launching area, troll past the Naval Wharf right around Middle Head into the main part of the Sydney Harbour. Take care around Middle Head as swell and boat wash is dangerous due to the shallowness of the water. Alternatively, take a left at Middle Head cross Middle Harbour and troll by Gtotto Point. Continue past Washaway Beach, and cross back to Balmoral right at the steep dropoff that runs the length of Middle Harbour.
If you pass Grotto Pt, keeping it to the left you will come to Dobroyd Point with it well known "Bommie". Stink boats are usually found there 7 days a week.