What's changing for property sellers

From 1 July 2026, Australia's AML/CTF laws extend to cover real estate transactions, under reforms known as "Tranche 2." Real estate agents, once outside this regulatory regime, now carry the same verification obligations that banks have had for years.

If you're selling property, this means your agent will need to confirm your identity and ask a few questions about the property and its ownership before it goes to market. This applies to every seller as standard practice — it's not a sign that anything about your sale looks unusual.

Why the law is changing

Real estate has been identified as a common channel for laundering illicit money, since property can absorb large sums and convert them into a legitimate-looking asset. Australia had left this sector unregulated for AML purposes long after banks and other financial services were brought under similar rules.

These reforms close that gap and align Australia with international standards set by the Financial Action Task Force (FATF). The intent is to make the property market harder to exploit, not to make selling harder for ordinary Australians.

What you'll need to provide

Before your agent lists the property, expect to be asked for the following:

• Proof of identity — a certified copy of your passport or driver's licence, along with proof of your current address.
• Beneficial ownership — if you're selling on behalf of a company, trust, or self-managed super fund, you'll need to disclose the individuals who ultimately own or control it.
• Property provenance — a brief account of how and when you acquired the property.
• PEP disclosure — whether you, or someone closely associated with you, holds or has held a senior government or public position.

What might slow the process down

These situations won't prevent a sale, but they may prompt your agent to ask for more information before listing or exchanging contracts:

• Delays or reluctance in providing standard identification
• Ownership records that are unclear or incomplete
• A property that was bought and is being resold in unusually quick succession
• A company or trust structure without a clear commercial reason
• Pressure to complete the sale quickly with little room for normal process

Providing full documentation early is the easiest way to keep your sale on schedule.

When this takes effect

The AML/CTF Amendment Act passed in December 2024, with AUSTRAC opening enrolment for real estate businesses in March 2026. Seller verification and ownership disclosure requirements become mandatory for every property transaction from 1 July 2026.