A parent meets the balance of family test if:
at least half their children and stepchildren are eligible children or
there are more eligible children than children living in any other single country
A child is an eligible child if they are:
an Australian citizen or
an Australian permanent resident usually resident in Australia
or an eligible New Zealand citizen usually resident in Australia
Note you will not have to pass the balance of family test if you are applying for the Sponsored Parent (Temporary) (subclass 870) visa.