When a cyclist comes to a stop sign do they need to unclip and put a foot on the ground or is a 3 sec track stand ok?

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Does your track stand involve rocking back and forth?  That's not stopping.

Stopping and giving way at a stop sign or stop line at an intersection without traffic lights

67 STOPPING AND GIVING WAY AT A STOP SIGN OR STOP LINE AT AN INTERSECTION WITHOUT TRAFFIC LIGHTS

(1) A driver at an intersection with a stop sign or stop line, but without traffic lights, must stop and give way in accordance with this rule.
Maximum penalty: 20 penalty units.
Note 1 : 
"Intersection" and 
"stop line" are defined in the Dictionary. This rule applies also to T-intersections--see the definition of 
"intersection" .
Note 2 : For this rule, 
"give way" means the driver must remain stationary until it is safe for the driver to proceed--see the definition in the Dictionary.
...
"stop" , in Part 12 and for a driver, includes park, but does not include stop to reverse the driver's vehicle into a parking bay or other parking space.

The law is silent about the duration of the stop (ie how many tenths of a second you must have zero velocity). So if you are trackstanding by rocking back and forth, you must be stationary momentarily at either end of the cycle.

I have beaten a 'fail to stop' charge - on summons prior to on the spot infringement notices - on this basis (was driving, not cycling).

Does the original question relate to an encounter with the constabulary? And a 'fail to stop' infringement? Personally, I'd take that to court.

Thanks Duncan and Cafard. Yes it relates to police booking at Sydney Olympic Park last week.

Interesting question but irrelevant to an old fart like me.

If you are looking at contesting the infringement also consider Section 10 - I saw a post by Bike Sydney on Facebook regarding the Gestapo  NSW police at the peaceful helmet free protest. They posted something from someone who went to court - (you will have to go to court) and got a section 10 dismissal due to the frivolous nature of the offence. 

NSW Police Force, wasting good people and courts time due to their prejudices 

I have no personal experience but anecdotically police persons seem to equate a cyclists foot touching the ground with them having "stopped", otherwise they might view a track stand as "dangerous riding".

Clearly there is no established vendetta against the practice, or we would have been hearing about it a lot more. I regard it as a personal challenge to complete any ride with my feet above ground all the way, and I usually succeed. And I have done it, many times, in front of police either in cars or on Pedro duty. Never had a problem.

That is not to say that some individual police won't seize the opportunity to enhance their key performance indicators, or vent some spite if given the opportunity. It ever happens to me, I'll be contesting it.

I recall previous discussion about a fighting fund for contesting helmet offences. If Noel is going to take this to court, it might be useful to pass the hat around. I'm in.

It goes back decades to motorcycle practice I'd wager, not putting a foot down at a stop sign, considered not stopping.....and they've just used the same criteria for bicycles.  Understandable if you're riding a 350kg Gold Wing, less so on the latest 8kg carbon wonder!

As Duncan's road rules post says, you have to "Stop and remain stationary",  so I guess any backwards and forwards motion is cause for a pinging, to a cruel cop. But it should be contestable, on the grounds that you are more or less just oscillating around the stopping point. But if you lose your balance and have to run on a bit to recover, or fall off, as I generally do, not being any good at it, or do silly circles, you are fair game IMHO. 

Apparently Mr O_ tried to get an answer on this from NSW Police when the fines were increased (seems so long ago) and there was a report that track standing cyclists had been pinged for dangerous cycling- never confirmed tho. Police didn't respond to Mr O_.  See comments in

https://cyclingtips.com/2016/03/how-to-do-a-track-stand/

Gets quite funny towards the end of the comments, when the very nature of track standing and life itself is questioned.

That's an amazing link.

Just to finish up on the OP. It was not me that was booked but someone else. I was just trying to find out where he stood. But now I can see it is in this "sate is anti-bike" territory. It is sad and I hope we live to see it completely turn around. 

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