That fish in your photo is a yellowtail pike. Good live baits for mackerel, jewies etc. Flesh can be a bit mushy so often, not the best baits as fillets, but OK IMO.
The main things on bay reefy areas is to fish as light as you can, both in respect of line weight, and sinkers. 10lb braid with maybe 10-12lb flourocarbon leaders, or, if fishing using mono, 12-15lb line. Sinkers just small enough to allow your bait to waft gently down, have to adjust this according to current and depths.
Better fish often caught up off the bottom, and the bottom usually holds more of the pickers and vermin such as stingrays, wobbygongs, shovelies and the like.
if youve got a sounder, look for structure - a dropoff, lumps of rock that stand out even a bit from surrounding areas.