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1. I do not think parents can renounce their children's citizenship.
2. Anyway, I do not think the Singapore authorities will want the quitters to enjoy the privileges of a Singapore passport. Sometimes, ambiquity can be a good thing. Since he has served NS, he remains a Singaporean. So what he travel on Aussie passport. When it is time to decide whether to return to Singapore, he can renounce his Aussie citizenship. But if he change his mind, he can still use his last "card" to reinstate his Aussie citizenship.
Any comments?
But it does offer the other way around !