One of the biggest changes to Australian real estate in decades. Here is a calm, plain-English look at what the new anti-money-laundering rules mean for everyday buyers and sellers.
From 1 July 2026, real estate agents across Australia, including here in Adelaide’s Eastern Suburbs, come under new anti-money-laundering laws for the first time. If you are buying or selling a home, this will change a few small things about the process, mostly around confirming who you are and, in some cases, where your money has come from. None of it is cause for concern. It is a sensible set of checks that banks and lawyers have done for years, and this guide explains what to expect so there are no surprises along the way.
AML stands for anti-money-laundering. The full name is anti-money-laundering and counter-terrorism financing, often shortened to AML/CTF. These are laws designed to stop criminal money being quietly moved through ordinary, legitimate purchases, including property. The national regulator is AUSTRAC.
Banks, lawyers and accountants have operated under these rules for a long time. Under the AML/CTF Amendment Act 2024, often called the Tranche 2 reforms, the rules are now being extended to real estate agents, property developers, conveyancers and a handful of other professions.
Property is a natural target for anyone trying to disguise the source of money: the values are large, and a home can quietly hold a great deal of wealth. For years, Australia was one of the few advanced economies whose anti-money-laundering rules did not cover real estate, and international reviews repeatedly flagged this as a gap. The new reforms close it.
From 1 July 2026, agents become what the law calls reporting entities. In practice that means verifying who their clients are, keeping proper records, and reporting anything that looks suspicious. Agencies enrol with AUSTRAC during a window that opens on 31 March 2026 and closes on 29 July 2026. For you as a buyer or seller, the visible part of all this is simply a bit more identity checking than before.
If you are buying, you can expect to verify your identity as part of the process. The timing is generous: the checks need to be completed within 15 days of signing the contract, or before settlement, whichever comes first. In most cases you will provide standard identification, and for higher-value or unusual purchases you may also be asked about the source of your funds (more on that below). If you are buying through a company, trust or self-managed super fund, there are a few extra steps, covered further down.
If you are buying, a sensible first move is to speak with a conveyancer early, before you are in the middle of a purchase. They can tell you exactly what identification and information you will need under the new rules, and keep your settlement running smoothly. One of the professionals I work closely with is Angie Nguyen at Convey Property Settlements. Angie and her team are already helping clients prepare for these changes.
If you are selling, your identity is generally verified earlier in the process, around the time you appoint an agent, because that is the point at which the agent begins providing a service to you. The basics are the same: confirming your name, date of birth and address with proper identification. If the property is held in a company, trust or as part of an estate, the agent will also need details of that structure and the people behind it.
A compliant identity check confirms your full name, date of birth and residential address, verified using reliable, independent documents such as a passport or driver’s licence. This is a little more formal than the identification collected for a contract today, so you may be asked to provide certified copies or to complete a short verification step.
As part of this, agents also screen clients against sanctions lists and check whether someone is a politically exposed person, which simply means a senior public official or close associate. This is a routine background step applied to everyone, not an accusation, and for the vast majority of people it passes without any further questions.
For higher-risk transactions, an agent may need to understand where your money has come from. This typically applies to large purchases, all-cash deals, or funds coming from overseas. The aim is simply to confirm that the explanation makes sense, not to make a judgement about you.
The good news is that ordinary explanations are exactly what is expected: savings, the sale of another property, a gift from family, an inheritance, or an approved loan. If your purchase falls into a higher-risk category, having a few supporting documents ready, such as bank statements, a sale contract or a loan approval, will keep things moving smoothly.
Buying or selling through a company, a family trust or a self-managed super fund (SMSF) is completely legitimate and very common, but it does add a few steps. Because the law wants to know who is really behind a structure, the agent must identify its beneficial owners: broadly, any individual who owns or controls 25 percent or more of the entity, or who holds ultimate decision-making control, and then verify their identity.
SMSFs receive particular attention and cannot be handled with a simplified check. If you are buying or selling through any of these structures, the sensible move is to allow a little extra time and have the relevant paperwork ready, such as a trust deed or company details, so the verification is straightforward.
Naturally, this involves sharing personal information, and it is reasonable to want to know it is handled properly. Reporting entities must manage the information they collect in line with privacy law, use it for compliance rather than marketing, and keep verification records for seven years, as the law requires. You are entitled to ask how your information will be stored and protected, and a good agent or conveyancer will be happy to explain.
These are federal laws that apply right across Australia, including here in South Australia. They sit alongside our existing process, such as the Form 1 vendor disclosure and the usual conveyancing steps, rather than replacing any of it. Both real estate agents and conveyancers in South Australia are affected, so you may encounter the checks at more than one point in a transaction.
The simplest way to know exactly what you will need is to ask your conveyancer early. If you would like a recommendation, the conveyancer I work with and trust is Angie Nguyen at Convey Property Settlements, who brings more than 25 years of experience and can guide you clearly through what these changes mean for your sale or purchase.
This guide is general information to help you understand what is coming, and it is not legal, financial or taxation advice. The detailed rules are still being finalised and may change before and after they commence on 1 July 2026. For advice on your specific situation, please speak with your conveyancer, solicitor or accountant, or refer to AUSTRAC, the national regulator.
The obligations take effect on 1 July 2026. Real estate agencies enrol with AUSTRAC during a window that opens on 31 March 2026 and closes on 29 July 2026. From that point, identity checks become a standard part of buying and selling.
Yes. Expect a formal identity check confirming your name, date of birth and address using documents such as a passport or driver’s licence. For sellers this usually happens when you appoint an agent; for buyers it is completed within 15 days of signing the contract or before settlement.
Sometimes. For higher-value purchases, all-cash deals, or money coming from overseas, an agent may need to understand the source of your funds. Ordinary explanations such as savings, a property sale, a gift or an inheritance are exactly what is expected, and having supporting documents ready makes it simple.
There are a few extra steps. The agent must identify and verify the people behind the structure, broadly anyone who owns or controls 25 percent or more of it. Self-managed super funds receive particular attention. Allow a little extra time and have your trust deed or company details ready.