Thanks for the information. It has put my mind at ease a little bit. We are likely to go talk to a migration agent now before we apply. I see it this way, we are being honest and are hiding nothing so that can possibly help towards our integrity in the matter.
I can see how it will effect his credibility and it will raise concerns regarding his previous visas. I do know that he did notify immi again once his 457 visa application was received and he got a letter in return stating he was then on a Bridging A visa until the new visa had been approved, which was a matter of weeks. So you are right, he has never really been here illegally.
We are just so worried that they will kick him out of Australia and it is the last thing in the world that we want to happen. Our daughter is our main priority in life and not having her father around because of immigration issues is a tough thing to think about. But I guess rules are rules. Our only hope is to be 100% truthful through the process and pray that it helps to get through it all.
Thanks again for your comments