Augustus fundamentally transformed the government of Rome by taking away most powers of the Senate while still maintaining the appearance of the republic. He concentrated power in his own hands and established the principles of imperial rule, thus laying the foundation for the Roman Empire. However, he did keep some elements of the traditional republican structure to gain legitimacy. So, one could say that while he respected some traditions, he ultimately shifted the balance of power significantly in favor of the emperor.
The most accurate response to how Augustus changed the government of Rome would be: He took away most powers of the Senate.