Welcome to the Wefugees Community and thank you for reaching out to us.
I thought about your situation for a while now - it’s indeed a bit complicated and I can, unfortunately, not share any experience here. I’m sure the immigration office (Ausländerbehörde) wants to have your passport as long as you are in Germany. However, I don’t think they have an interest in preventing the issuance of your Australian visa. Maybe it’s possible to make an agreement that you submit your passport as soon as the Australian embassy doesn’t need it anymore/has checked it. Or do they keep the passport for the entire visa process?
I think it would be the best to discuss a strategy individually and confidentially in a migration counseling office. The social workers may also support you in the communication with the immigration office.
Do you agree dear @mbeon-fardeen? And can you add any advice?
In any case, please don’t hesitate to get back to us with any further questions and if you need help in finding counseling services in your area.
All the best,