The braid is fine, but the fluorocarbon leader looks a little light.
If anything bigger than a rat takes a livie you could get busted off while trying to keep it out of the reef.
If you fish mid water then the 40lb should be OK.
Get you leader up around the 80-100lb mark, single 7/0 Gamakatsu Octopus or livebait hooks are good.
Cheers
Plato