New AML Laws Commence 1 July: What Property Buyers and Sellers Need To Know
New anti-money laundering and counter-terrorism financing (AML/CTF) laws come into effect from 1 July 2026, introducing important changes to the way Australians buy and sell property.
Real Estate Institute of Australia (REIA) CEO, Scott Rollason, said the reforms mark a significant step in protecting the Australian property market from financial crime.
“From 1 July, real estate professionals are required to take reasonable steps to identify and verify the identity of their customers,” Mr Rollason said.
“In some circumstances, agents may also need to ask additional questions about the source of funds or source of wealth, as well as the nature of the transaction. These are now standard legal requirements across the industry.”
The changes bring the real estate sector into Australia’s AML/CTF regime, aligning it with other designated services and international standards.
Mr Rollason said while the changes may be new for property buyers and sellers, they play an important role in protecting the community.
“Money laundering is not a victimless crime. It is often linked to serious criminal activity including drug trafficking, corruption, child exploitation and human trafficking,” he said.
“These reforms are designed to make it harder for criminals to use property transactions to hide or legitimise illicit funds, and to strengthen the integrity of Australia’s economy.”
What this means for buyers and sellers
Under the new requirements, customers engaging with a real estate agent may be asked to:
- Provide identification, such as a driver's licence or passport
- Confirm personal and contact details
- Provide additional documentation where required
- Answer questions about the source of funds or the nature of the transaction
“For example, a buyer may be asked how funds for a property purchase were obtained — whether through salary, savings, investments, gifts or the sale of assets,” Mr Rollason said.
“In some cases, agents may also need to understand a customer’s broader source of wealth.”
Mr Rollason emphasised that these checks are a normal part of the new requirements and do not indicate any issue with a customer or transaction.
“Even if you’ve bought or sold property before, or have an existing relationship with your agent, you can expect these processes to apply.”
Industry ready for reform
Mr Rollason said the real estate industry has shown strong leadership in preparing for the new obligations.
“We want to thank real estate professionals across Australia for taking these reforms seriously and working diligently to prepare in a short period of time,” he said.
“We are seeing very strong engagement from industry, including significant enrolment levels with AUSTRAC. Real estate is leading tranche two industries in participation, reflecting a high level of readiness across the sector.”
“We also want to acknowledge the outstanding work of the State and Territory Real Estate Institutes, who have been working tirelessly over the past 12 months to support their members in preparing for these reforms,” Mr Rollason said.
“They have played a critical role in ensuring the industry is informed, prepared and ready to meet its new obligations from day one.”
“If you have not yet enrolled or finalised your preparations, it is critical that you take action now.”
Ongoing collaboration
Mr Rollason also acknowledged the immense work undertaken by AUSTRAC in implementing the reforms.
“We recognise and thank AUSTRAC for their extensive consultation and ongoing engagement with industry to ensure these reforms are practical and effective.”
“REIA and the State and Territory Real Estate Institutes will continue to support members through implementation and ensure the industry plays its part in reducing the harm caused by financial crime.”
Media contact:
Scott Rollason, REIA CEO
0448 501 542 | scott.rollason@reia.com.au
