Not sure whats going on, but having trouble posting comments; so here is a bit on my findings regarding adoption in NSW. Firstly, by clicking on post title it will take you to NSW adoption link where you will find info. From what I have found, as long as one of the joint applicants are an Australian citizen then you can apply for local adoption, you also need to have been married or in De-facto for two years, but no mention how long you need to have been living in state. Keep in mind you can only adopt locally within the state which you reside. There are also a few agencies who arrange local adoptions, one being Anglicare, http://www.anglicare.org.au/, check their web site out for more info. Good Luck!
Anyone persuing local adoption and permanent care, my biggest advice is stay positive throughout the process.