You are not right. Only children born to citizens and permanent residents in Australia become Australian citizens. If you have not been granted permanent residence before your child is born, you will need to add the child to your visa after the birth.If I'm right, any baby born on the Australian soil gets their citizenship by default, no matter what visa the parents are on. In any case you might want to wait for a confirmation from others on the forum in this regard.
Currently we are in 489 FS visa. I know that 887 is applicable after 2 years. Lets say if we deliver a baby after applying 887 visa but not received, shall the baby gets citizenship?
Please let me know