Children born overseas to an Australian citizen parent apply for Australian citizenship using Form 118 - Application for Australian citizenship by descent.

You should contact your nearest immigration office outside Australia or see their website for more information before lodging your application because:
•you may be required to attend an appointment and present original documents as part of your application process
•some posts only accept certain currencies for fee payments with your application
•some posts will ask you to bring in your original documents and will certify copies for you to attach to your application
•some posts may only accept copies certified by an Australian citizen in your country of residence
•some posts may also accept copies certified by a citizen of your country of residence if no Australian is known to you
•some posts may direct you to their preferred third party for document certification.

Passport:
Children cannot be included in an adult's passport. Each child, including a newborn infant, must be issued with their own passport.

If you are lodging an application for a child overseas, you must complete the overseas application form.
When you apply for an Australian passport for a child you must provide original documents which confirm the child's identity and Australian citizenship.

You will need to provide the child's full original Australian (or foreign) birth certificate. Where a foreign birth certificate is presented you must also provide an approved translation if necessary and an Australian citizenship certificate. Birth extracts, commemorative certificates, photocopies or facsimile copies are not acceptable.

If you want your newborn child to be able to stay permanently in Australia when you come back to Australia after the birth, you will need to apply for an Australian passport for the child while you are overseas. You can register the child as an Australian citizen and then apply for the passport at your nearest High Commission.

It's a bit of a pain, but you will most likely have to take the baby to the High Commission when you pick up the passport. At least, that's what happened with my wife and I went we went to pick up my son's passport – we had to bring along our very young son so as to show him in person. I assume that this is to help prevent passport fraud.

 

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[PDF]Form 118 - Application for Australian citizenship by descent

www.border.gov.au/forms/Documents/118.pdf

Australian citizen parent was a citizen by descent or full Hague adoption, then that ... Australian citizenshipcommences on the date the application is approved.

Application process for citizenship by descent

https://www.border.gov.au/.../Application-process-for-citizenship-by-des...

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Need assistance with an Australian citizenship question? The following steps are a guide to the application process for Australian citizenship by descent.

Child born overseas to an Australian citizen

https://www.border.gov.au/.../Child-born-overseas-to-an-Australian-citiz...

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If your responsible parent became an Australian citizen by descent, he or she must have been present in Australia for periods totalling two years at some time in ...

Document checklist for Australian citizenship by descent

https://www.border.gov.au/.../document-checklist-for-australian-citizensh...

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The checklists below list documents commonly required for applications for Australian citizenship by descent. There is also general information about documents ...

Citizenship | australia.gov.au

www.australia.gov.au/help-and-contact/faqs/citizenship

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The Citizenship website address is: www.border.gov.au/Trav/Citi ... Australia to an Australian parent, you may be eligible for Australian citizenship by descent.

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DIAC_descent - Embassy of Australia

usa.embassy.gov.au/whwh/DIAC_descent.html

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Birth, adoption and surrogacy - Smartraveller

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Australian nationality law - Wikipedia, the free encyclopedia

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