For some reason the ads alongside this log are currently showcasing a very expensive handbag - perhaps you could try hanging it off the handlebars :)
What ads? Someone needs to donate ;p
It's a non-issue on my normal commuting ride (about 10km with plenty of sitting up at traffic lights); only becomes a problem on longer and more continuous rides.
Panniers won't help in negotiating the Gipps St or Chandler Highway steps.