Basically what Striker said. The system will not see it any differently to a scenario where someone bought a firearm privately three years ago and the previous owner now lets their license expire.
Legal ownership and legal responsibility can be thought of as two different things. While old mate has gone overseas and the firearms are in your safe, you have legal responsibility, custodianship essentially. For the purposes of the act, we can say ‘they are in your possession’.
Legal ownership in the sense that we are discussing, is more about whether or not someone has a monetary interest in the firearms. Your mate could make the argument that he has such an interest, but that dynamic is abstract to whose safe they are stored in and who can legally possess them in the event he does not renew.
Bookmarks