The Democratic Party was formed as a reaction against the forming of a coalition of left wing politicians surrounding Victoria Jensen, registering two days after the Labour Party was formed. It was the brain child of the party's first and current federal leader Gabriel Hayward, who wanted to create a movement modeled on the Liberal Party of Australia. Hayward opted for the name Democratic Party to create a broad based movement that could appeal to right wing liberals and traditional conservatives alike, without using either term to overtly describe the party ideology.
At the first federal election in April 2013, the Democratic Party finished in second place with 66 seats to Labour's 83, becoming the opposition party in the federal Parliament.
The DPS is a liberal conservative party that is concerned chiefly with free market economics. It believes in using Samara as an example for the idea free market, economically liberal state with low state intervention, zero public debt and fiscal rigidity. Broadly speaking, it is strongly federalist and supportive of the rights of states against the powers of the federal government. On social issues the party has less well defined policies and its members range from being borderline libertarian to being fairly socially conservative. For this reason the party has so far shied away from defining firm positions on contentious social issues like abortion or same-sex marriage.
The Democratic Party has generally been seen as the party of the economy with weakness on social issues, in contrast to Labour which voters appear to trust more when it comes to society but weak on economic policy.
Unlike the Labour Party, the Democrats do not have individual constituent parties in each state. It is registered in all three states under the same name with the same federal leader, with the party dividing internally but not legally into informal state branches. The day to day affairs of the party are managed by the party President who works alongside the federal parliamentary leader; the President and the leader are together responsible for deciding who leads the party in each state of the Republic. Party policy is ultimately decided by the federal leader.
This structure puts the Democrats in an interesting legal position. As long as the two party system continues, it is virtually guaranteed that the Democratic Party will be the single largest party in the House of Representatives even after landslide defeats simply because it is almost impossible for one of Federal Labour's three constituent parties to surpass the entire Democratic seat tally. At the April 2013 election, the Democrats won more than twice as many seats as all but one of Labour's component parties.