Good to have a budget, but keep in mind, its best too to have as much available funds at hand, even just on a debit card that you can use at ATMs.
I have got Nzd$118 in cash, and Aud$500 odd for 2 days in card, for my next upcoming NZ trip.
Hostels usually here in Aust, only accept overseas visitors, so they might or might not ask for a deposit on check in, I know a lot of hotels will ask for a card on checkin, some will take a $100/$150 deposit, which they say will be put back if you haven't used any phone calls, or minibars and don't have charge backs.
For Sydney, its best to get a Opal prepaid public transport card, though you will have to ask if they will refund you the unused portion at the end of 5 days.
Benefit of it is that if you use a lot of trips in a week, (I know yours is 5 days only), after a certain number of metro trips, you get cheaper prices, I think after 8 trips on the card, the rest is 50%.
Rather than Doyles, try the Asian eateries in Chinatown, or Cabramatta, if you want to have a look at Vietnam centric Sydney.
Lots of supermarkets around, and the eastern states ones also have things, like sushi prepared for sale, rare to see that in Adelaide supermarkets, (I do realise you are not coming this far south!).
Supermarket food is not all that bad here!
For $15 you can get a bowl of pho and a drink, for $20 you could add in some dim sims.
Bondi or Manly, a must for a look see, Bondi you can get a bus from the city centre, for Manly, use Opal ferry, (there is also the faster private ferry, I think this private ferry does not accept Opal).
Maybe $500 for 5 days in Sydney?
For FNQ, I would say, leave at least Aud$75, about $40 for nightly accommodation, the rest for food, if you can have a buffer of $100 a day on card even better.
I don't personally carry cash that much these days, as a lot of places in Aust will accept Visa or Mastercard (debit/credit versions), and less widely Amex.
Lots of places will not charge a fee for using cards, some places will.
For Sydney, on your first day, you might like to use the train, from the airport, yes this is a fast trip, but its all underground, so you don't get to see the scenery, and have to change trains somewhere, Central or Circular Quay, to get a bus/train to your friends place, if they are picking you up, all the better.
Have been to Sydney many times, but not to FNQ, only been as far as Brisbane.
Opal can be used on public transport (public ferries, trams, buses and trains), not sure about if they will refund unused Opal credit left on card though.