Hanno,
Your rules with your sister's car probably don't have much bearing on Chris' situation as you are talking about people permanently living inside the EU.
Chris will need an International Drivers Licence when he is in Australia "practising" on his new toy and can also use that legally in EU (even though they are happy to accept his Swiss licence just as they are happy to accept my Australian licence).
I could not believe that any cop could have the motivation to do anything other than say "Have a nice day" when he pulls up a Swiss citizen, driving an Australian registered vehicle - with his name on the owners and registration papers - and is shown a current legal International Licence and a proper Green Card insurance.
Anyhow, it is up to Chris but you know me, having all that stuff above is way beyond anything I would contemplate having if I was him. It is so much easier to be forgiven than get permission. They will still be trying to sort out the legality of the operation long after Chris has died of old age in the unlikely event he is even pulled over for a check in the first place.
Lang
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