Can I apply first British passport in Australia?

Looking for sound advice. Did scour through but couldn't see any similar case to compare.

My husband will be taking at least 1 year sabbatical work in Australia. We are both on ILRs, completing 1 year in August. He needs to start working by January 2015 and already in progress of sorting out work visas etc which will have to be stamped on his non British passport and same for me as spouse visa. Realistically looking at timeline of naturalisation process etc, we would both probably just made it to get our naturalisation process in time before flying out, but won't likely to be able to process application for British passport.

Is it possible to apply for first British passport in Australia? I am an Indian passport holder and aware of the 3 months grace period as well, hence with the upheaval of moving abroad etc, bearing in mind the Aussie work/spouse visa will be in the Indian passport (?need to transfer to British passport?), I couldn't risk sorting out the British passport before we go. Any potential issues anyone can think of that we haven't? The only other way is obviously sorting the passport application once we are back here from the sabbatical, but I felt this is too far ahead!

Any advice is welcomed. Thanks.

As far as I know once you become a British citizen you can apply anywhere you want.