what to do during the day...

How much exercise is this dog getting?  I think that if the pup was completely tired out before you went to sleep, he might not be so bored and therefore might not destroy the yard (although, I would probably keep the dog inside while you slept if he was getting into trouble outside)...  With one of you working during the day and one at night, it is probably hard, but I think it will really help to get a couple of hours of solid exerice in for this dog each day - if he is tuckered out, he will be happy to come inside and sleep while you do... 

I take him for a walk when I get home in the mornings, around 7:30.  But I need to get to bed by 8:30. I guess if my husband got up at 5am...no that wouldn't work either. When I wake up in the afternoon I immediately go out with the dog and play fetch or frisbee.  And my husband plays with him all night until he goes to bed. Its just really hard with our work schedules to give him a good 2 hours of play time everyday, except on the weekends and days that I am off which is usually 6 days at a time so that is nice. I guess I am just wondering if keeping him in the crate all day, except to go potty, is pure torture for a dog like this, especially when he sleeps with my husband all night. That is why I wondered if a regular chain kennel is more appropriate for the outdoors.

I think, and I don't know anything about Aussies specifically, that if he gets 45 min. to an hour of good exercise in the morning and then is fed...  he should be able to go back to bed without a problem.  Then at 3ish he is taken back out to play and walk (another hour of good exercise) and then he is able to be inside with his one of his people until he gets maybe one more short walk or gets a short obedience refresher or an indoor game like hide and seek for a while and then just hangs out again until bed - when he goes back to sleep - this is fine!  Dogs sleep a lot.  If he is crate trained, he can sleep in there during the day, or just be with you in the room (if he is good) during the day - that is bonding time too - maybe he doesn't like to be outside alone, he is bored and not relaxed and doesn't know what to do with himself do he gets into things...
 
If you are spending a good amount of quality time with your dog each day, he will probably be able to adjust to whatever schedule you need him to.  It doesn't seem like your dog doesn't get to spend time with his people...  Maybe you just need to make a little more of the time "active" time.  Maybe your husband can do one "activity session" with the pup in the evening??
 
In our case, our lab/border collie, who is super high energy, has adjusted really well to sleeping for a good chunk of the day (as well as through the night).  Wesley gets up, goes out for 1-1 1/2 hours, comes home and sleeps while we are at work.  He has a walker come walk and playgroup him for 1 or 2 hours (from about 12-2) and then he sleeps again for the rest of the day until we come home (any time between 5:00 and 6:30).  Then we have a 1/2 hour walk and some obedience work while he is fed dinner and then he just hangs out with us until bed.  I would say we (including the walker) spend 7-8 waking hours with him a day (3 or so exercising, doing obedience, feeding him etc. and the rest with him just being with us). 

Thanks for the advice. I just wasn't sure how much crate time was OK for him, since he can not be outside unsupervised at this point. Like I said these are only on the days that I work, when it is a problem.  I work 8 days straight, and then get 6 off. The dog is with me all of the time other wise, or my husband. I guess I was just wondering what everyone else does with their dogs while they are at work. I wish I could afford to have someone come and walk/play with him during the day. That would be great. I have a 6 year old Cocker, and he has no problem sleeping all day long, and all night so I dont worry about him. Its this crazy puppy that needs all the attention right now.  I will just continue to try to run his butt off in the mornings before I go to bed and then again in the afternoon. []