Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws are expanding into the property industry under the “Tranche 2” reforms.
From 1 July 2026, certain businesses and professionals involved in property transactions, including lawyers and conveyancers, may become regulated by AUSTRAC when they provide particular designated services connected with the sale or purchase of property. AUSTRAC has confirmed that the reforms apply to designated services commonly provided by legal professionals, conveyancers, real estate professionals, accountants and other newly regulated sectors.
For purchasers and sellers, this means you may be asked to provide additional information during your transaction, particularly about your identity, ownership structure and, in some cases, the source of funds being used.
What applies now
As at 2 June 2026, conveyancing transactions are still primarily governed by existing requirements, including:
- professional obligations, including confidentiality;
- trust accounting obligations;
- verification of Identity requirements;
- e-conveyancing requirements; and
- privacy and data security obligations.
Many of these checks are already familiar to purchasers and sellers. However, the AML/CTF reforms are expected to increase the level of due diligence required in some matters.
What is changing from 1 July 2026
From 1 July 2026, new AML/CTF obligations are scheduled to commence for newly regulated designated services. These obligations are expected to capture many services commonly provided in property transactions.
Importantly, the new rules are service-based. This means the obligations apply depending on the type of work being carried out, rather than simply because someone is a lawyer, conveyancer or real estate professional.
Businesses providing designated services under the new laws will generally need to enrol with AUSTRAC and comply with AML/CTF obligations, including customer due diligence, record keeping and suspicious matter reporting.
What purchasers and sellers may be asked to provide
To comply with AML/CTF requirements, lawyers and conveyancers may request additional information and supporting documents, including:
- identity documents;
- authority documents, such as powers of attorney;
- company, trust or SMSF documents;
- beneficial ownership information;
- information to assist with sanctions and risk screening; and
- information about the source of funds being used in the transaction.
Source of funds enquiries are more likely to arise in higher-risk situations, such as where there are:
- cash purchasers;
- large cash deposits or settlement contributions;
- overseas funds transfers;
- unusual payment arrangements; or
- complex ownership structures.
These requirements are designed to help prevent criminals from using property transactions to launder money or conceal the proceeds of crime.
How this may affect your transaction
Purchasers and sellers should expect:
- more information requests earlier in the transaction;
- additional checks for companies, trusts and SMSFs;
- possible delays if requested documents are not provided promptly; and
- increased collection and secure storage of personal information by legal and conveyancing practices.
In many straightforward transactions, the process may still feel similar to existing identity and verification checks. However, some matters may require more detailed questions and supporting documents than before.
What you can do to help avoid delays
To help your transaction proceed smoothly, you should:
- provide identification documents as early as possible;
- ensure company, trust or SMSF documents are readily available;
- be prepared to explain the source of purchase funds if requested; and
- respond promptly to any compliance enquiries from your lawyer or conveyancer.
Providing documents early may help avoid settlement delays, particularly where further checks are required.
Key dates
1 July 2026 — scheduled commencement of the new AML/CTF obligations for relevant designated services.
29 July 2026 — businesses providing newly regulated services from 1 July 2026 are expected to enrol with AUSTRAC within 28 days.
Final note
From 1 July 2026, purchasers and sellers should expect enhanced verification and compliance processes in many property transactions.
While these additional checks may require more documentation than previously, early cooperation with document requests will help minimise delays and assist transactions to proceed efficiently.
This article is general information only and should not be considered legal advice.
