Baby Gammy's Australian citizenship application lodged

Baby Gammy, who remains at the centre of a surrogacy scandal in Thailand, could become an Australian citizen.

West Australian couple Wendy and David Farnell made international headlines in August when a Thai surrogate alleged they abandoned Gammy, who has Down syndrome, and returned to WA with his healthy twin sister, Pipah.

Hands Across The Water founder Peter Baines, who helped find Gammy and his family a new home, told AAP today that an application had been lodged with the Australian embassy in Bangkok to make Gammy an Australian citizen.

"The application will be assessed on its merits. It's going through the normal process," he said.

Mr Baines said it was hoped that citizenship would give Gammy some entitlement and security.

It is unclear if his citizenship would make him entitled to Australian welfare.

Mr Baines said Gammy and his family had now settled into their new home, which was purchased with money raised by the community.

"They are loving the space. The older kids are enjoying their new freedom and having somewhere to play after school and to do their homework," he said.

"It's also a healthier environment for Gammy and they've made it their home."

Thailand's military-appointed cabinet this week reportedly approved new laws to ban commercial surrogacy.

Mr Farnell, a convicted child sex offender, still has custody of Pipah after an investigation by the WA Department for Child Protection.

Minister Helen Morton said this month that a comprehensive safety and wellbeing assessment had been conducted and a safety plan had been developed for Pipah.

"This is just the beginning of the department's interaction with this family, and there will be continual and rigorous testing of the safety plan, as well as continued support provided," she said.