Try to find the spot where the photographer was standing.
Looks like this image partners another one about the troops leaving for Soudan (modern day Sudan):
Which was on 3 March 1885 (http://www.defence.gov.au/news/armynews/special_elements/on_this_day/march.htm)
The stone wall at right in the phototgraph looks like Victoria Barracks, Paddington, Sydney, NSW.
Which would make this parade moving in a westerly direction along Oxford Street, Paddington. Although in 1885, this was named South Head Road.
comp[are this photograph with another from 1864, showing troops parading in Victoria Barracks, with the Britannia Hotel the tallest building in the background (distinguished by the two chimneys at side of roof):
"The New South Wales contingent to the Sudan in 1885 was recruited and trained at Victoria Barracks." (http://fr.sydney.com/town/Paddington/Victoria_Barracks/info.aspx )
Lengthy but good backgrounder here: