A Sydney band that I was introduced to recently and is definitely worth checking out is Dead Letter Chorus. If you are a little jaded by Nu-wave pretenders or Wolfmother type revisionists then this 6 piece band will put you in touch with genuine, authentic sounds. They haven't been on the scene for a long time, but they look to be heading into the recording studio sometime this year. The music that I have heard seems to place them in that blend of rock, country and folk that when done right produces a beautiful sound. They list their influences as Bob Dylan, Johnny Cash, Bright Eyes, Martha Wainwright, The Shins, The Frames, so you can perhaps get a feel for their music from that list. I have a couple of live tracks here that will give you a further idea, they feature the voices of Gabrielle Huber and Cameron Potts on lead vocals.

MP3: Don't Get Shiela (live)
MP3: Winter Solace (live)

You can listen to some demos on their My Space for a further taste.
Also they have a few live dates coming up including one at the Annandale on the 17th.