Dont get caught up in the "got to have a stella to catch good fish thing" The only time you need an expensive reel is the drag settings, a $50 reel will do the job most times, If you have more thats great ...but mostly cheapy will do the job. Better gear is Nice if yOU canafoid it.

Agree with the above sentiments.  The rod and reel are secondary to the knowledge you bring and the quality and appropriateness of the bait (or lure) for the fishing you are doing.  Don't spend a bomb - at least until you get a feel for what will work for you.  I just moved from the south west to the pilbara.  I bought new and good gear to bring up here.  Often since I have wished I brought up my old trusty (and inexpensive) rod and reel from home. 

What I like in a reel is a smooth drag which tightens up slowly, that is, there is a fair bit of movement on the drag adjustment to increase the actual drag. That allows for fine tuning.  But that is me.  Most mid range reels are more than adequate.  A deep spool would be good up that way.  As for rods, I don't know the technical terms for it but you can kinda feel which rods have good flex (shock absorbing quality) but transfer power where you need it, that is, niether too stiff or too sloppy.  Just get someone to hold the end and pull the rod back - strong but flexible is the aim.  Better to try a load of them in the shop than just take a recommendation and go with that.  7 foot give or take would be right for the creeks.  Test your kmart rod first.  You might find it does the job fine.  There are not nearly as many dud rods on the market as there used to be.

Welcome back to fishing, congratualtions on the job, and have fun. 

 Some of my best fishing memories are with a $2 ebay rod and a bashed up old 2500 size reel. Bait casted good tailor off the reefs landed good skippy off the yak even nailed a salmon. When it finally broke i glued a cue tip to it and pull it out to shoot pool with for a laugh. Ive got the high end good gear but choose to use my cheap stuff off the yak so i dont ruin the good stuff. Still nail some quality fish. Use what you can afford and are comfortable with fish dont judge.

 I've had everything from absoulte top of the range stuff the the very cheapest.  Personally would probably not buy a stella again as there are many way cheaper and 99% effective weapons out there.  

Having said that the cheapest (kmart) stuff is not a pleaseure to use. 

Reels I use on a regular basis:

Stradic 5000SWPG general jigging (had for quite a few years and has been a workhorse) $300 imported from japan.

Sienna 2500 squidding and whiting (cheap as hell and had for prob 6 years and looks pretty much the way I bought it) about $50 bcf

both of these reels have caught countless fish and been used over and over.  I look after my gear whether expensive and cheap.  wash down with a sponge and clean water every use...or at least when I get back from a trip.

My advise would to be to buy a shimano that's in your price range whatever that may be.  Sienna Sedona Nasci socorro Stradic etc.

And  as above a little Siena for reels. 
Then  just check out rods in person at a decent fishing shop. A cheap flicky and stiffer 7-8ftr will get you by. 

Thanks everyone, took advice to heart. Smirks will probably do the job for rods up here and Shimano reels