Determine whether or not you need to take the citizenship test. If you are over 60 years of age or under 18; are hearing, sight, or speech impaired; or suffer from a permanent physical or mental incapacity which keeps you from taking the test; then you are excused from the Australian citizenship test requirement. Otherwise, you'll have to sit for the test.
Take and pass the Australian citizenship test, if required.
Reside in Australia legally for a minimum of four years before applying for citizenship.
Take no vacations outside of Australia exceeding 12 months in duration during the four years of legal residence leading up to a citizenship request.
Make sure you fit the "good character" requirement. This essentially means divulging any legal convictions you have previously had in any foreign state to assure the Australian government that you are not a criminal threat of any kind.
Pay a filing fee in Australian dollars. As of 2008, the fee was $240.
File your paperwork for an Australian citizenship application.
