Process of becoming a squatter in 1820?

Answer 1

There was no specific process. Squatters chose the land they wanted, erected their sheep or cattle runs and fences, and called that area their land. They had no actual legal right to the land, but they gained the land simply by being the first in the area.

Squatter were different from selectors, who were awarded tracts of land. Sometimes selectors' lands encroached upon what the squatters called their own, and conflict resulted. Regulations to control "squatting" only came in during the 1830s.