On 5 August 1850, the Parliament of the United Kingdom passed the Australian Colonies Government Act which made provision for the separation of Victoria from New South Wales.

[9] Enabling legislation was passed by the Parliament of New South Wales, and Victoria was formally created a separate colony of the United Kingdom on 1 July 1851.

The first Legislative Council existed for five years and was responsible for at least three significant and enduring contributions to the parliamentary system of Victoria: drafting the first Constitution of Victoria, ensuring a secret ballot within elections (a novelty within the British Empire at the time[11]), and ordering the construction of Victorian Parliament House in Melbourne.

[25] The principle of ensuring that rural regions, which typically represented the landed gentry when Victoria first formed, were over-represented in parliament was also rescinded.

[27] Until November 2006, the Legislative Council had 44 members serving eight-year terms, elected from single-member constituencies, with half the seats falling vacant every four years.

Since 2006, the Legislative Assembly has had 88 members elected for fixed four-year terms from single-member constituencies, using preferential voting.

[15] Fixed four-year terms were introduced for both houses in 2003, replacing the previous provision that allowed the government to expire after no more than four years.

The whip's main duty is to ensure that all of the members of their party are present within a chamber when a formal vote takes place.

This means that, unlike the Australian Senate, the other chamber of Victoria's parliament cannot block supply for government funding.

It is assumed that the government of the day will act upon the initiatives it campaigned on and the Assembly serves as a direct link between local members and each individual constituency.

Majorities within the Council are rare by design, while minority interest groups are more likely to be elected than within the Assembly, encouraging debate and compromise.

Both the speaker and the president have important powers in controlling debate in their respective chambers, including the ability to punish members who step out of line or disobey their orders.

[41][42] The presiding officers also oversee votes within their respective chambers and provide proof of assent in the instance that a bill is passed.

They have a specifically defined role designed to seek community input about ideas or to investigate matters Parliament deems important.

Lobbyists, members of the public and organisations communicate with committees in order to give input into the drafting of bills.

[45] As they need as broad an understanding as possible of the issues at hand, committees may perform inquiries with the authority to subpoena documents and summon witnesses.

A quorum must be present for a day's proceedings to be legally binding, so the presiding officer will generally wait until enough members are within the chamber before entering.

Bills are then drafted by the Office of the Chief Parliamentary Counsel to ensure that all relevant clauses and technicalities in existing laws are covered.

[40] The presiding officer of a house determines when a bill, motion or petition is tabled by adding it to the notice paper for a given sitting day.

This leads to bells being rung and members either stand to the presiding officer's right if they assent or to the left if they dissent.

The governor may not refuse to assent to a bill, except possibly in extreme circumstances where the judiciary and all other constitutional safeguards were unavailable.

[58] The Treasury Corporation of Victoria outlines that the Victorian Parliament's key responsibilities are: "education, public health, police and justice, transport, roads and railways, industry, mining and agriculture, public works, ports, forestry, electricity, gas, and water supply and irrigation".

Common practice is that the houses sit in staggered dates; the Assembly usually meeting first in order to pass bills that the Council later debates.

[39] Alterations to Victoria's Constitution made in 2003 stipulate that some sections may not be modified without a three-fifths majority of both houses, while others may not be amended without a public referendum.

[66] The governor's role includes formally opening sessions of parliament with a speech outlining the government's legislative agenda.

[30] The leader of the political party or coalition with a majority of seats in the Legislative Assembly is invited by the governor to form a government.

However, the opposition's power is limited while the government commands a majority in the Legislative Assembly due to the traditionally strong party discipline throughout Australia.

Victoria's Parliament, like all of the states of Australia, has a vertical fiscal imbalance and is dependent on the federal government for about half of its funding.

The states gave up their ability to raise income taxes during the Second World War, but they have maintained responsibility for the management of the majority of services.

[76] This value is difficult to place in a modern context, due to Australia's conversion to a decimal currency and the smaller economy of the time.