Stumbled upon this post and thought I would comment ...
I sponsored my partner onshore for 801/802 Defacto Visa in August 2012, He received his permanent residency 2 weeks ago! So as you can see it is a long process but worth it! before we lodge our application he was also on a 457 working visa and had 5 days until this expired! when we lodge our paper application via express post, we received an email from the dept of immigration 2 days later advising that they had received the application and my partner was granted a bridging visa.
I would definitely submit a complete application (that’s what we did) i.e. overseas police checks etc, because if the department have to contact you for this information it can delay the decision making process etc etc etc. The personal statements that we wrote when I read back on them, they are very formal and include a lot of information (probably more than what was required!). Our statements was both about 2-3 pages long. During the whole process I found online forums to be a massive help J.
Try not to stress, easy for me to say though as I was stressing through the whole 2+ Years!
PM anytime :smile: