Hi everyone,
I’m hoping to get some guidance on a property matter.
At the time I was on a temporary visa and not eligible to purchase property myself, so my first cousin kindly purchased a house on my behalf. I provided the full purchase amount and covered all associated taxes and costs, but the property was registered in my cousin’s name due to my visa status at the time.
I have since become a citizen, and I’m now wondering what the correct and lawful process would be to transfer the property into my name.
My questions are:
Is it generally possible to transfer the property in this situation?
Would this typically be treated as a standard transfer/sale, or are there exemptions in cases like this?
I’m not trying to avoid any obligations — just want to understand the proper way to handle this and ensure everything is compliant.
Any insights or experiences would be greatly appreciated. Thank you.
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1 replies
ATO Certified Response
Author: RachelATO(Community Moderator)Community Moderator ATO Certified Response9 Feb 2026
Hi @Michael1985,
The arrangement you've described may fall within areas that require review. When you were on a temporary visa and not eligible to purchase property, having your cousin purchase property on your behalf may mean your interest should be registered under our foreign investment rules.
The rules require foreign persons to obtain foreign investment approval before purchasing Australian residential property and to register their investment on the Register of foreign ownership of Australian assets.
Now that you're a citizen and want to transfer the property into your name, this transfer would generally be treated as a standard property transaction at market value. When property is transferred between family members, we generally treat it as if the property was sold at its market value, even if no money changes hands. This is known as the market value substitution rule, and capital gains tax (CGT) may apply to your cousin based on any increase in the property's value since purchase.
You'll also need to consider:
- your cousin may have CGT obligations on the transfer, calculated on the difference between the original purchase price (cost base) and the current market value
- stamp duty may be payable based on the market value of the property
- whether your cousin has been declaring any rental income or claiming deductions if the property has been rented
- registering the foreign investment, if approval wasn't obtained when the property was purchased.
Given the complexity of your situation we recommend you contact us so we can let you know what steps need to be taken.
You should also seek advice from a qualified tax professional who can assess your specific circumstances and guide you through the transfer process correctly.
