AML Changes Are Coming to Australian Real Estate: What Buyers and Sellers Need to Know

Australia’s real estate industry is preparing for one of the biggest regulatory changes in decades, with new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws set to apply to real estate professionals from 1 July 2026. These reforms are designed to strengthen the integrity of Australia’s property market and help prevent criminals from using real estate transactions to hide illegally obtained funds. (AUSTRAC⁠)

For buyers, sellers, investors, and property professionals, these changes will introduce additional identity verification and compliance requirements throughout the property transaction process.

What Are the AML/CTF Reforms?

Until now, Australia’s AML/CTF obligations have largely applied to banks, lenders, and other financial institutions. Under the new “Tranche 2” reforms, real estate agents, buyer’s agents, property developers, lawyers, conveyancers, and accountants involved in certain property transactions will also become regulated entities. (AUSTRAC⁠)

The reforms aim to reduce the risk of money laundering and financial crime by ensuring greater transparency around property transactions and the source of funds used to purchase real estate. (AUSTRAC⁠)

Why Is Real Estate Being Included?

Property has long been recognised internationally as a sector that can be vulnerable to money laundering due to the high value of transactions and the ability to purchase property through trusts, companies, or other complex ownership structures.

The Australian Government and AUSTRAC have introduced these reforms to align Australia with international best practice and strengthen protections against financial crime. (AUSTRAC⁠)

What Will Change for Buyers and Sellers?

For most everyday property transactions, the buying and selling process will remain largely the same. However, clients can expect additional compliance checks before a transaction proceeds.

These may include:

• Verification of identity documents.
• Confirmation of the beneficial owner of a company or trust.
• Additional questions regarding the source of funds used to purchase property.
• Enhanced record keeping requirements.
• Ongoing monitoring of transactions that may present higher risk. (AUSTRAC⁠)

As a result, buyers and sellers may be asked to provide more documentation than they have in the past.

What Will Real Estate Agencies Need to Do?

From 1 July 2026, many real estate businesses will be required to:

• Enrol with AUSTRAC as a reporting entity.
• Implement an AML/CTF compliance program.
• Appoint an AML/CTF compliance officer.
• Train staff on AML/CTF obligations and procedures.
• Conduct customer due diligence checks.
• Report suspicious matters to AUSTRAC when required. (AUSTRAC⁠)

These requirements are similar to obligations that banks have operated under for many years.

Will Property Transactions Take Longer?

While the industry is working hard to streamline the new requirements, some transactions may involve additional steps and documentation requests.

Clients who are prepared with identification documents, trust deeds, company records, or evidence of funds may experience a smoother process. Industry experts expect the biggest impact to be during the early stages of implementation as agencies, buyers, and sellers adapt to the new framework. (Reddit⁠)

What Does This Mean for Property Owners?

For genuine buyers and sellers, the reforms should have minimal impact beyond providing additional information during the transaction process.

The long-term objective is to create a more transparent and secure property market while reducing opportunities for criminal activity within the sector. The changes are also expected to enhance consumer confidence by strengthening protections around property transactions. (AUSTRAC⁠)

This article is general information only and should not be taken as financial, taxation or legal advice. Please speak with a qualified accountant, financial adviser or legal professional about your personal circumstances.