From 1 July 2026, new Australian Federal Government Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will apply to the real estate industry. These reforms are being introduced nationwide through AUSTRAC and will require real estate agencies to complete identity and compliance checks for certain property transactions.
These changes are being introduced to help prevent criminal activity such as money laundering, fraud, identity crime and terrorism financing within the Australian property market. Australia has been one of the last major countries to introduce these requirements into the real estate sector.
What Does This Mean for Sellers and Buyers?
As part of the new legislation, real estate agencies will now be legally required to verify the identity of clients involved in property transactions and complete compliance checks before certain services can be provided.
This process is similar to identification checks already completed by banks, lenders and solicitors.
The checks may include:
- Verification of your identity
- Confirmation of ownership details
- Verification of company or trust structures (if applicable)
- Screening against government watchlists and compliance databases
- Collection of supporting identification documents
AML Compliance Fee
From 1 July 2026, an AML compliance fee of $180 will apply per client/entity requiring checks. For sellers, these checks must be completed once the Form 6 has been signed. For buyers, the required AML checks must be completed within a timely manner following the signing of a Contract of Sale to ensure compliance obligations are met and to avoid delays throughout the transaction process.
This fee covers the cost of:
- Government-compliant identity verification systems
- Mandatory compliance screening
- Secure document handling and storage
- Ongoing compliance obligations required under Federal legislation
Why Is This Being Introduced?
The Australian Government is expanding AML/CTF laws to industries considered higher risk for financial crime, including:
- Real estate professionals
- Lawyers
- Accountants
- Conveyancers
- Property developers
The goal is to improve transparency and help protect the Australian property market from illegal activity.
Will This Delay My Sale?
In most cases, no. The process is designed to be straightforward and completed early in the transaction process to avoid delays later on.
Providing requested identification documents promptly will help ensure a smooth experience.
What Information Will I Need to Provide?
Depending on the ownership structure, you may be asked to provide:
- Driver Licence or Passport
- Proof of address
- Company or trust documentation
- Identification for directors or trustees
- Other supporting documentation where required
Protecting Your Privacy
All information collected as part of AML compliance checks will be handled securely and in accordance with Australian privacy laws and compliance requirements.
Questions?
If you have any questions about the new AML requirements or the verification process, please feel free to contact our team. We are here to guide you through the process and make it as simple and stress-free as possible.
For more information about the new Federal Government AML/CTF requirements, please visit the official AUSTRAC website -> About the reforms | AUSTRAC