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If the apartment is in their names, they will need to lodge returns in Australia for the rent received from it.

Yes, we have an expensive non-resident tax rate. You pay 29% flat up to the 30% threshold, and then you pay at the same marginal rate that we do. Escaping tax is illegal. You won't get any of that tax back. I assume the property doesn't have a lot of tax deductions which will lead to a...