FAQ – AML laws and real estate in Australia

What are the new AML laws for real estate?

The AML laws and real estate reforms are part of Australia’s Anti-Money Laundering and Counter-Terrorism Financing framework.

From 1 July 2026, real estate agencies involved in property sales will need to:

• verify the identity of buyers and sellers

• understand the source of funds used in a transaction

• monitor transactions for suspicious activity

• report suspicious matters to AUSTRAC, Australia’s financial intelligence regulator.

These reforms are often referred to as “Tranche 2” AML laws.

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Why are AML laws being introduced into real estate?

Property transactions involve large amounts of money and can be used to move or hide illegal funds.

The government is expanding financial crime rules so professions involved in high-value transactions must carry out identity checks and due diligence.

Real estate agents, lawyers, accountants and conveyancers will all be affected.

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When do the AML laws start for real estate?

The key date for the AML laws and real estate reforms is:

1 July 2026 – real estate professionals must comply with the new AML obligations.

From that date, agencies involved in property sales will need to operate under AUSTRAC regulations.

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What will buyers need to provide?

Buyers may be asked to provide:

• photo identification (passport or driver licence)

• confirmation of the purchasing entity if buying through a company or trust

• information about where the purchase funds are coming from.

These checks may happen earlier in the buying process than they have in the past.

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What will sellers need to provide?

Sellers will also need to verify their identity with their agent.

This may include:

• identification documents

• identification of source of funds 

• confirmation of ownership structures

• details of any trusts or companies involved.

This helps confirm who is behind the transaction.

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Will property transactions take longer?

Most transactions should not be significantly delayed.

The main difference is that identity checks and documentation will occur earlier in the process before an agent can formally act in the transaction.

For genuine buyers and sellers, it mainly adds a small amount of paperwork.

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Do these AML laws apply to property management?

In most cases, property management and residential leasing are not included in the AML reforms.

The laws mainly apply to services involving the sale or transfer of property ownership, such as:

• selling residential property

• acting as a buyer’s agent

• brokering property transactions.

Leasing and day-to-day property management activities are generally outside the scope.

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Will buyers paying cash be affected?

Yes.

Large cash payments or unusual payment structures may trigger additional checks or reporting requirements under AML laws.

This does not mean the transaction cannot proceed, but agents may need to ask further questions.

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What happens if suspicious activity is detected?

Real estate agencies will be required to submit a Suspicious Matter Report to AUSTRAC.

This is part of Australia’s financial crime prevention system and is already standard practice in the banking sector.

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How will these changes affect property sellers and buyers?

For most people the impact will be small:

• more identity verification

• more documentation early in the process

• slightly more compliance behind the scenes.

The goal is a more transparent property market and better protection against financial crime.