Talk about happy because my expired passport is considered proof of Clarissa's entitlement to Australian citizenship.
I spoke to my mystery caller from DFAT this morning and it turns out I was given dodgy information by the passport hotline; the expired bit applies to information that proves identity (eg a driver's licence), and not residence such as a passport.
So imagine if I'd given up and accepted the first advice I got, and we'd handed out $55 to get a certificate for Clarissa, only to discover later it wasn't required! That seriously would have got up my nose.
Now Clarissa has to get cracking on her passport and with any luck she'll have it within the month and we can finalise her application.