Australia’s property market is undergoing a significant regulatory shift. From 1 July 2026, new anti-money laundering (AML) laws will expand into the property sector. This will directly impact buyers, sellers, and the professionals who assist them. For anyone involved in property transactions, understanding these changes is crucial.
Why are these changes being introduced?
Australia’s real estate market has long been identified as vulnerable to financial crime, particularly money laundering.
Still, the property market continues to attract organised criminal activity. Since 2020, authorities have restrained approximately $1.2 billion in criminal assets, with a significant proportion linked to real estate (source: Australian Federal Police). This highlights the need for stronger regulation and greater transparency across property transactions.
With this in mind, the Federal Government is introducing what are known as “Tranche 2” AML reforms, bringing Australia in line with other jurisdictions such as New Zealand.
Who will be affected?
The reforms will apply to a wide range of professionals involved in property transactions, including:
- Real estate agents
- Conveyancers
- Lawyers
- Buyer’s agents
- Accountants
This means that if you are buying or selling property, you will likely notice changes in how these professionals interact with you.
What will buyers and sellers need to do?
Under the new requirements, clients will need to provide more detailed identification and background information during a transaction.
This may include:
- Full name, address, and date of birth
- Government-issued identification (e.g. passport or driver’s licence)
- Information about the source of funds
- Details of ownership structures (e.g. companies or trusts)
While this may feel like an extra step, it is similar to identification checks already required by banks and financial institutions.
Ongoing monitoring during the transaction
One key change is that checks won’t just happen at the start.
Professionals involved in your transaction must:
- Monitor the transaction from contract exchange through to settlement
- Identify inconsistencies or unusual changes
- Ask further questions where required
For example, switching from a mortgage to a cash purchase during the process could trigger additional scrutiny.
What are considered “Red Flags”?
Certain situations may require further investigation or reporting to regulators. These can include:
- Unusual funding arrangements (especially large cash components)
- Buyers whose financial position does not align with the purchase price
- Complex ownership structures that are difficult to trace
- Inconsistencies in identification documents
Importantly, these checks are not about stopping transactions. Rather, they are about ensuring transparency and compliance.
Will this delay your property transaction?
For most buyers and sellers, the impact will be minimal.
Straightforward transactions — such as purchasing a family home in your personal name — are unlikely to experience delays.
However, more complex matters involving trusts, companies, or multiple directors or beneficiaries, may require additional verification steps.
What will this mean for buyers and sellers?
These reforms signal a shift toward greater accountability in the property market.
While the process may involve more documentation, it ultimately aims to:
- Protect the integrity of the property market
- Reduce financial crime
- Ensure legitimate buyers and sellers are not disadvantaged
How we can help you
Navigating property transactions is becoming increasingly complex, particularly with evolving regulatory requirements.
At Joseph Grassi + Associates, our Property + Conveyancing team ensures that your transaction:
- Meets all legal and compliance requirements
- Proceeds smoothly from contract to settlement
- Minimises delays and risk
Whether you are buying, selling, or investing, we can guide you through every step with confidence.
This article is for general information only and is not intended as legal advice. If you need specific help, please contact our office.
