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There are a few different types of psychology postgraduate courses in Australia:

Masters by coursework, otherwise known as professional masters Doctorate by coursework, also known as professional doctorate Masters by research PhD Masters/PhD combined degree

These courses are described below.

Masters by coursework, also known as professional masters
Usually two years full-time, or four years part-time, this course consists of three components each worth about one third of the course: coursework, practicum, and a research thesis. Rather than being a general degree in psychology, most professional masters degrees are specialised - for example within the field of clinical psychology, organisational/industrial psychology, educational psychology, sport psychology, or forensic psychology.
The coursework revolves around clinical theory (according to the specialisation of the masters - eg. clinical, neuro, counselling, forensic, etc), research design, practical skills, etc. During the practicum, students work with clients in a clinic or organisation, and are supervised by a range of professionals. The practicum is often divided into four or more components, so that during the first six months students might work in the university clinic, and then later they might work in 2 or 3 different external clinics. The thesis is a research project of the student's own design, of around 20, 000 words. Completing this courses allows you to join the APS and register as a psychologist.

Doctorate by coursework, also known as professional doctorate
This course is between three and four years full-time, is within a specialised field of psychology (clinical, neuro, organisational, etc), and is similar to masters by coursework. However it involves a substantially longer thesis (40, 000 - 70, 000 words), usually has more hours of practicum, and often has a few extra coursework subjects. In addition, when you have finished the course you can call yourself Doctor! More and more universities are offering doctorates, and some are ceasing to offer coursework masters. Completing a doctorate allows you to join the APS and register as a psychologist. Doing a doctorate might be useful if you are interested in doing research in the future, if you want to work overseas (I have been told that in USA only doctorates can qualify as psychologists), or if you want the extended training as compared to masters. Some doctorate courses allow you get a scholarship, which is a definate plus!
At some universities, doctorate students attend the same classes and practicum as masters students, however in their third year they may do some additional coursework and practicum. Sometimes you must enrol as a masters student, and only extend to become a doctorate student at the end of the first year. At other universities, the doctorate course is entirely separate.

Masters by research
This course is two years full-time or four years part-time, and primarily involves your own research project, which is around 60,000 words in length. It may involve a small number of coursework subjects. You can get a scholarship (if your marks are above a certain level). After completing masters by coursework you can join the APS, but you can't register as a psychologist.

PhD
This is usually three years full-time, and, like masters by research, consists almost entirely of your own research project, which is 100, 000 words long. This course allows you to join the APS, but not register as a psychologist. You can, however, call yourself Doctor at the end of it, and you can get a scholarship if your marks permit it. At some universities you have to enrol as a masters by research student, and then apply to become a PhD student at the end of the first year. Doing a PhD is a good idea if you want to become an academic (someone who earns a living by doing research at a university) or pursue research in psychology.

Masters/PhD combined degree
This course is usually four years full-time, and involves the coursework and practicum of the masters by coursework and the research project of the PhD. You can get a scholarship if you have the marks, you can call yourself Doctor at the end, you can join the APS, and you can register as a psychologist! This course is probably of interest to you if you want to work as an academic as well as professionally.

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