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They need training on passport applications. They refused to process an application because the witness to signatures had used their stamp to put their phone number on the application and the guarantors signature was "too small" (that is the persons signature, you want them to alter it?). The Australian Passport Information Service confirmed they were wrong on both counts.
The worst bit was when they read the guarantors name. He was born in Australia. The staff member asked, "Is he an Australian citizen? He can't be guarantor if he's not an Australian citizen." I guarantee that if his name was John Smith, that question wouldn't have been asked.
All-in-all, a highly disappointing encounter with people who actively inflict non-existent red-tape demands on an already bureaucratic task.