The parliament of Australia makes all the laws, represents what people and groups are interested in seeing, forms the government from the elected party, and monitors what ministers are working on, especially in using public money.It consists of the Queen, the Upper House (Senate) and the Lower House (House of Representatives). Members of the Senate represent citizens of their state or territory. Members of the House of Representatives represent citizens of their electorate. (an area of a state or territory, normally with multiple towns or suburbs in it) Both houses vote for new laws and initiatives.

 

 

The houses have different names in the state and territory governments. The lower house is called the Legislative Assembly (House of Assembly in Tasmania and South Australia) and the upper house is called the Legislative Council. In Queensland, the Northern Territory and the Australian Capital Territory, there is no upper house.

The houses are controlled by political parties. In Australia, the main parties are the Australian Labor Party (ALP) and the Liberal Party of Australia (LPA). Minor parties include Family First, the National Party (in a coalition with the Liberals), the Greens and the Democrats. People can also represent themselves and their own beliefs. These people are called Independents.
The parliament is controlled by the federal, state and the local governments. The Australian Capital Territory also combines their territory and local governments.
As the Queen is not available to visit Australia, (or other Commonwealth countries) she is represented by a Governor-General chosen by the prime minister at that time. (Governor in states and territories) They have the final decision of laws that are passed by the houses.
References

Brasch, N. 2007, Federal Government,
Government in Australia, Reed International. Port Melbourne 

 

Brasch, N. 2007, State & Territory Government,
Government in Australia, Reed International. Port Melbourne 

 

Brasch, N. 2007, Local Government,
Government in Australia, Reed International. Port Melbourne 

 

Brasch, N. 2007, Political Parties,
Government in Australia, Reed International. Port Melbourne 

 

http://www.peo.gov.au/faq/faq_5.html#5_1