Despite being a important part of the Australian political system (in the past, anyway), the Democrats will fade into the background, with only Stott Despoja likely to survive the next election. However, both Murray (Western Australia) and Bartlett (Queensland) are quite good, so here's hoping that the four Democrats survive the next election - if anything, I would really like to see Murray retain his place.
Apart from that... It's all dependent upon the state of the economy, sadly. We may well see the current government strike more blows against the retreating social-democratic framework upon which our current society operates (some see this as something to cheer, of course), or we may see a period of stability emerge as the current reforms take effect and make their presence known over the long term. Oh, and the ALP is going to continue to shift to the right, tax cuts will continue to fall from the sky, and the idea of forgoing a tax cut in order to allow a funding boost to a government service will continue to be taboo for both the ALP and the Libs. The Nats are likely to break away from the Libs at some stage(or the Libs may dissolve the Coalition), too.
Edit: Here's to Beazley being sent back to the backbench and... someone, anyone, taking the leadership. My preference (from the current crop of Labor MPs) would be Gillard.
Edit 2: Though a number of people may fear both the IR reforms and the Coalition's control of the Senate (whenever Joyce is onside, that is), I think that the way in which political apathy dominates our society will see the Coalition to another 'victory' come 2007 (barring some unforseen event that sees the current Coalition crash and burn). Whether they maintain their control of the Senate, though, is up the air as far as I'm concerned. Beyond 2007... Presidential politics is the name of the game in today's Australia, so a great deal will be dependent upon who leads both the ALP and the Libs/Coalition.
Edit 3: The nation-state will continue to be racked by debates regarding what it means to be 'Australian', and another hope of mine (this one being close to a pipe-dream) is to see the following sense of identity emerge -
The challenge is to develop a public understanding of multiculturalism that recognises difference within a common and shared set of constitutional and political institutions and values.
What is crucial to nation building is not shared values but a shared identity which derives from an acceptance and identification with a common set of social and political institutions. The prime requirement is to reaffirm the indissoluble principles of a liberal democracy that bind us together as a political community, but at the same time recognises difference.
We need to recognise that we identify with the political nation, conceived of as a self-governing, political and moral community and not a cultural nation derived from some set of mythical core cultural values signifying unifying cultural values of the dominant group in society.
The real basis of unity, social cohesion, solidarity and social integration lies not in shared values but a shared identity which derives from an acceptance and identification with a common set of social and political institutions.
Source: Laksiri Jaysuriya - Our shared, core values are but a myth underpinning this new racism (SMH Online: Page 2)
Let us hope that we at least take the odd step or two in this direction over the next ten years.
No doubt there's more that's escaping my mind at this particular moment, but I think that the above will do.