The soft-bottom fauna of Gunnamatta Bay, Port Hacking, N.S.W., was sampled to estimate the abundance, trophic structure and net production of the macrobenthos. The samples were classified into groups from spatially distinct strata, the groups differing in species abundance and diversity and in the identity of the dominant species. The composition and community structure of the fauna was generally similar to that in other sheltered embayments on the southeastern coast of Australia. Estimated production values were low for an estuary, ranging from 10 kJ m −2 year −1 in an intertidal stratum of well sorted sand to 210–450 kJ m −2 year −1 in shallow subtidal strata with an admixture of silt. Estimated net production over all strata was 160 kJ m −2 year −1. Polychaetes dominated production, providing 45% of the total; crustaceans provided 20%, and molluscs and echinoderms 12% each. Detritus-feeders were dominant in most strata: the bivalve Theora fragilis, the polychaetes Australonereis ehlersi and Notomastus torquatus, and the urchin Echinocardium cordatum were major contributors to overall biomass and to net production. Substantial biomass and net production was also contributed by the suspension-feeding bivalve Corbula vicaria and a carnivorous crab Ceratoplax cf. glaberrimus. Overall, detritus-feeders contributed 61% of estimated net production, carnivores 32% and suspension-feeders 7%. Production estimated for carnivores was higher than could be supported by the non-carnivore populations, suggesting that some of the species considered to be carnivores have additional feeding modes. Excessive harvesting of bivalves by humans is suggested as the main reason for the low biomass of, and therefore low production by, suspension feeders.