The second chamber in a bicameral parliament, typically responsible for reviewing legislation passed by the lower house. At the federal level this is the Senate; in the states it is the Legislative Council. The upper house is sometimes called the house of review. Queensland is the only Australian jurisdiction that does not have an upper house.
The origin of the term is largely historical. In the United Kingdom the House of Lords and House of Commons originally met in different rooms within Westminster Palace. The Lords chamber was positioned at the "upper" end of the building while the Commons met at the "lower", northern end. So "upper" and "lower" referred to where you were standing in the building.