No worries. That one grade won't keep you out of top 30.
When you say you're from an Australian top uni, you must be from one of UNSW, ANU or UniMelb. Top 30 schools would already have the expectation that the graduate measure theory in one of these schools is very tough. A pass grade for that course is for sure not a positive signal, but may not be as bad as you think.
The minimum mathematics is up to real analysis. Measure theory is more "advanced" than real analysis so it does not carry too much weight to begin with. Your research experience however, will carry more weights than a single measure theory course. Your advisor is from one of the three schools ,you have a great Honours thesis at one of these schools and you're RAed for your advisor. I think you're fine.
Of course, USYD and Monash are two best schools after those three. In my opinion, if you are heading towards Top 5 then you really should do your Honours in those top three schools (and get good grades for sure). But your target is Top 30, so an Honours from USYD should be good enough.
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