The way to dodge FIRB used to be to walk down the main street yelling “I’m going to buy an Australian property illegally”. But in recent weeks since the regime change in FIRB’s directive, it has become a little more complex using trust structures. From the AFR:
“The much-preferred method that foreign buyers have pursued is to simply transfer funds to their newly appointed trustee who has Australian residency, and they then legally purchase a property,” Mosman real estate agent, Robert Simeon told The Australian Financial Review.
…”This is something that needs to be resolved for once and for all,” Mr Simeon said. “Because the trustee clause means you don’t have to be an Australian to buy residential real estate, and it’s been proved time and time again that these avenues need to be shut down.”
And more from Robert Harley:
“Tsk, tsk,” said the real estate agents, lawyers, accountants and immigration agents involved in the compliance industry. If the FIRB had been handled properly on that sale, it would have been fine, they said, which implies that there is a way, if you have the right advice, for a foreign national without resident status to buy an established Australian home.
It can easily be shut down. Simply prosecute the enabling lawyers and accountants.
