What's changing for property buyers

From 1 July 2026, Australia is extending its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws to cover real estate for the first time. These are known as the "Tranche 2" reforms, and they bring real estate agents, conveyancers, and lawyers into the same regulated category that banks have operated under for years.

In practice, this means that if you're buying property in Australia, your agent or conveyancer will now be legally required to verify who you are and ask questions about where your money is coming from before your purchase can proceed. This isn't optional for them, and it isn't a judgment on you — it's a standard check applied to every buyer, every time.

Why the law is changing

Property has long been recognised as one of the easiest ways to move illicit money into legitimate-looking assets. Australia was one of the few countries in the developed world that hadn't yet regulated real estate for this risk, even though banks, casinos, and remittance services already had these obligations.

The reforms bring Australia in line with international standards set by the Financial Action Task Force (FATF), the global body that sets anti-money laundering standards. The goal isn't to slow down honest buyers — it's to make it harder for illicit funds to pass through the property market unnoticed.

What you'll need to provide

When you make an offer on a property, expect your agent or conveyancer to ask for the following before contracts are signed:

• Proof of identity — a certified copy of your passport or driver's licence, along with proof of your current address.
• Source of funds — a clear explanation of where your deposit and purchase funds are coming from, such as savings, the sale of another property, an inheritance, a loan, or funds transferred from overseas.
• Entity details — if you're buying through a company, trust, or self-managed super fund, you'll need to identify the individuals who ultimately own or control that structure.
• PEP disclosure — whether you, or someone closely associated with you, holds or has held a senior government or public position (referred to as a "politically exposed person").

What might slow the process down

None of the following will stop your purchase outright, but they may prompt your agent to ask follow-up questions or request additional documentation before proceeding:

• Large cash deposits, or a series of payments structured to stay under reporting thresholds
• Funds coming from an overseas bank account
• Money contributed by a third party who isn't part of the purchase
• A company or trust structure that doesn't have a clear commercial reason
• Identity documents that are incomplete, expired, or inconsistent

Having your documentation ready and your source of funds clearly explained upfront is the simplest way to avoid delays.

When this takes effect

The underlying legislation, the AML/CTF Amendment Act, passed in December 2024. AUSTRAC — the regulator overseeing these checks — opened enrolment for real estate businesses in March 2026, and the new buyer verification requirements become mandatory for all transactions from 1 July 2026.