Going by their website they would prefer visa applications by mail - EMS:
" We prefer that Visitor applications are lodged with us by mail. Please send your application form, passport and supporting documentation by EMS to the relevant office. Postal addresses for our offices in China are listed on the Contact Us page."
The application should be sent to the Shanghai office:
"Applicants living in the following provinces should apply at the Australian Consulate General in Shanghai:
• Shanghai, Chongqing, Jiangsu, Zhejiang, Anhui, Jiangxi, Hubei, Heilongjiang, Jilin, Liaoning, Shandong, Inner Mongolia, Shanxi, Henan, Ningxia, Shaanxi, Sichuan, Gansu, Qinghai, Xinjiang and T."http://www.china.embassy.gov.au/bjng/DIMA03020103.html
It should take 5 working days to process but allow for mailing time and other 'events':
"1. How long before my intended travel date should I lodge my application?
The average processing time for complete applications lodged in Beijing, Guangzhou and Shanghai is 5 working days from the day we receive your application. You should also allow for the time it takes your passport to be returned to you by EMS or SF Express. You should not make travel plans or purchase tickets in the expectation that you will receive a visa within the average processing time.
We recommend that you apply well before your intended travel date. However, certain situations may also result in your application taking longer than the average processing time such as:
• medical checks have not been completed,
• incomplete applications being submitted,
• waiting for postal order payments to clear,
• additional checks, or information being required, or character issues requiring further assessment."http://www.china.embassy.gov.au/bjng/DIAC211209.html