cruiseman - Australians and almost everyone else except Americans and Israelis need a Mongolian visa.
It can be obtained in Beijing or Erlian (the border town) but increasingly reports suggest that if obtained in China you will need a letter of invitation or something from a travel agency or guest house confirming your plans.
OP - there is a relatively recent report of someone in your situation who described crossing from China, getting his passport stamped for exit and then crossing into Mongolia getting the entry and exit stamp and crossing back to China on the same day. You might try searching for it as this person included all information about costs and times if I recall correctly.
Also this post from summer 2007 by manulike with update from Nov 2008 has useful information: Erlian Fact Sheet.
Ruth