Lawyers for the Australian federal government have raised concerns over property transfers made by the Christian Brothers, after the Catholic order sought a pause on abuse claims while arguing it can no longer afford to compensate survivors. The New South Wales Supreme Court has granted a moratorium on all civil abuse claims against the order, giving survivors time to consider a proposed compensation scheme.
However, attention has turned to a series of property transfers made over the past decade, with records showing land, school buildings and homes were sold to another Catholic entity for just $1 each. Lawyers representing the Commonwealth told the court they were worried the transfers may have reduced the assets available to survivors seeking compensation. The Christian Brothers says it owes around £380 million to current and future abuse claimants while controlling properties valued at roughly £106 million, leaving many survivors concerned about what compensation they may ultimately receive.
Property Transfers Under Scrutiny
The Christian Brothers asked the court to impose the moratorium after saying the order was running out of money and wanted to establish a separate scheme to sell its remaining properties before distributing the proceeds among creditors, including abuse survivors.
According to the order, it owes around £380 million to survivors with current or future abuse claims but has only 36 remaining properties under its control, valued at approximately £106 million.
The proposal would give survivors time to decide whether they wish to support the scheme instead of continuing with individual civil claims.
However, the court heard concerns over property transfers carried out over several years between the Christian Brothers and Edmund Rice Education Australia (EREA), an organisation established in 2007 to take over the management of former Christian Brothers schools.
This is Christianity in its lowest form
— Gus Lefty Aussie Patriot (@GusLefty) July 2, 2026
The Congregation of Christian Brothers Oceania Province is proposing to wind up its 183-year presence in Australia by liquidating its remaining 36 properties, valued at approximately $216 million, to avoid settling historical child sexual…
Property records obtained by the Guardian showed that land, school buildings and residential properties were transferred for just $1 each, including homes in Sydney worth millions of dollars.
The Australian Financial Review previously reported those transferred assets were worth about A$891 million in late 2024 and may now be valued at as much as A$2 billion.
Appearing before the New South Wales Supreme Court, Sera Mirzabegian SC, representing the Commonwealth, said the federal government wanted to ensure institutions accepted responsibility for abuse and provided appropriate compensation.
She told the court the Commonwealth had concerns about the historical transfers between the Christian Brothers and EREA and whether they had been 'proper and appropriate.'
Mirzabegian said it would be 'obviously disturbing' if the transfers had resulted in assets no longer being available to compensate survivors.
Court Considers Compensation Scheme
The court heard that the compensation scheme proposed by the Christian Brothers would still preserve the rights of creditors, including abuse survivors, to pursue assets that had previously been transferred to EREA.
The Christian Brothers submitted 15 pages of evidence explaining the nature of the property transfers.
However, Mirzabegian argued that the material contained 'discrepancies,' including conflicting information about the value of the land involved.
She told the court: 'What is abundantly clear from that evidence is that it unfortunately raises more questions than it answers.'
An EREA spokesperson had previously told the Guardian that the transfers formed part of a gradual process of handing over Christian Brothers school land and property after EREA was established as an independent organisation.
The spokesperson said the process took years because of what was described as the 'complexity of transferring individual titles across multiple jurisdictions.'
Justice Scott Nixon granted the moratorium on Thursday, bringing abuse claims against the Christian Brothers to a temporary halt.
The judge said the pause would allow survivors to consider the proposed property sale scheme before deciding whether to support it. Without the moratorium, Nixon said, the opportunity for survivors to assess the proposal would be lost.
The Christian Brothers has previously argued that, if the scheme is rejected, the order would enter liquidation. It has maintained that liquidation would probably leave abuse survivors receiving even less compensation than under the proposed arrangement.
