My suggestion would be to forget Instructing all together especially in the current economic climate.
If you don't wish to "head north " and really are committed to starting your own operation consider "teaming up " with a medium sized locally based road transport operation that provides regular services to regional areas throughout NSW.
Explain to them that you can coordinate same day on demand express delivery of anything that just cant wait i.e parcels, spare parts, medicines, medical records and even D.Gs that can't be shipped on RPT.
Explain that this Capability will make their company the number one transport contact throughout their area.
By working with an established entity you can share a reasonable portion of advertising , administration costs and tap into their wealth of client contacts from day one.
As far as the legalities go i know that CASA has (in the last 16 months) eased the requirements and in some circumstances even waived the requirement for an AOC for non pax operations.
With less red tape and admin costs than an pax carrying charter company you should be almost viable from day one.