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Separate statements. You'll find the narrative boxes in the online apps for applicant and sponsor are counted as the statements. You can choose to type them out and upload statements instead of using the boxes in the app if you choose. Either way, each statement needs to be in each of your own words and answer the 5 questions in the online app.
 

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Thanks! You have been really helpful. I have a follow-up question though, is there a comprehensive checklist for online application? If I am just looking at https://www.homeaffairs.gov.au/trav/visa-1/801-, they don't really have the exact documents needed listed out one by one. For example under the sponsor document section https://www.homeaffairs.gov.au/trav...pporting/Pages/partner/sponsor-documents.aspx it only mentions sponsorship form, identity documents and character documents. So it wasn't clear on first glance that the sponsor would be having separate statements.

Thanks again!!
That's because the "statement" is built into the online sponsorship form.
 
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