Buying or selling property – laws are changing July 1

If You Are Buying Or Selling Property After July 1, 2026 You Need To Know About Australia’s New Anti-Money Laundering Laws

If you’ve bought or sold property recently, you’re already familiar with the identity checks required as part of the process. Verifying your identity with a driver’s licence, a passport, and more, is all part of ensuring a secure transaction.

However, the regulatory landscape across Australia is about to undergo its most significant transformation in two decades.

The federal government’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Reforms, sometimes referred to as “Tranche 2” reforms, is officially bringing gatekeeper professions—including conveyancers, lawyers, accountants, and real estate agents—into Australia’s strict financial intelligence net.

For local families, downsizers, and investors, these changes mean that property transactions will involve a few more administrative steps.

Here is a practical guide to what the 2026 laws mean for you, why they are being introduced, and how Cornerstone Conveyancing is managing the compliance process to keep your property journey smooth and secure.

Why the Laws Are Changing

Historically, Australia’s strict anti-money laundering laws primarily targeted “Tranche 1” entities: banks, credit unions, casinos, and formal financial institutions. However, international regulatory bodies have long pointed out a major vulnerability in the Australian system. Because property transactions involve massive sums of money, real estate has become a prime target for illicit funds seeking a veneer of legitimacy.

By expanding the laws to cover the professionals who handle the actual transfer of land, the government aims to shut down these regulatory blind spots. Conveyancers are often closer to the legal transfer and settlement process than other parties in a property transaction, which is why they are now part of the reporting process for this new law.

From 1 July 2026, Conveyancers acting on behalf of a client to transfer real estate are classified as a “designated service” under the law. This means conveyancers are now fully regulated reporting entities under AUSTRAC (the Australian Transaction Reports and Analysis Centre). AUSTRAC are a regulator and financial intelligence unit tasked with keeping Australia safe. The organisation report that financial crime costs up to $82 billion a year. The new laws are designed to close the gaps criminals have been exploiting.

What Changes for Buyers and Sellers?

For the vast majority of those who are simply buying or selling a home or investment property, these changes do not mean your transaction will be blocked or delayed. What the new law does is it forces conveyancers to implement more comprehensive initial onboarding paperwork.

The core operational focus is on Customer Due Diligence and Know Your Customer procedures. These checks must be completed before a conveyancer or real estate agent can officially begin doing work on your behalf. AML checks may involve collecting more personal information than a conveyancer would previously have collected.

Here is what you can expect to be asked to provide during a property transaction:

1. Enhanced Identity Verification

Verifying your personal identity is no longer just a best-practice safety measure; from July 1 it is a statutory requirement. If you are purchasing or selling as an individual, you will need to provide standard government-issued photo identification.

This may include identity documents, dates of birth, residential addresses, information about companies or trusts, beneficial ownership details, sources of funds information, screening results and information about any third parties involved in the transaction.

2. Corporate and Trust Structures

If you are purchasing a commercial property, or using a family trust or proprietary limited (Pty Ltd) company to secure a residential property, the documentation requirements expand. Conveyancers are now legally required to identify the Ultimate Beneficial Owner. This means looking through layers of corporate structures to verify the actual individuals who ultimately own or control more than 25% of the entity.

3. Sourcing the Origin of Funds

One of the most noticeable changes is the requirement to declare the source of funds and wealth. Your conveyancer will need to document how the purchase money was accumulated—whether it is through a standard bank mortgage, accumulated savings, an inheritance, equity from a previous property sale, or a gift from family.

4. Politically Exposed Persons Screening

Conveyancers must now screen clients against databases to determine if they are “Politically Exposed Persons” (individuals holding prominent public positions domestically or overseas) or subject to international financial sanctions. While it may be unlikely to impact a standard transaction, conveyancers must still carry out the screening across all transactions.

The Behind-the-Scenes Impact

To comply with the law by the 1 July deadline, firms like Cornerstone Conveyancing must:

• Enrol with AUSTRAC and register as a formal reporting entity.
• Appoint an AML Compliance Officer, usually a senior staff member who will  manage the internal compliance program.
• Draft an AML/CTF Program that is a comprehensive, risk-mitigation framework tailored specifically to the types of property transactions handled by the organisation.
• Submit Suspicious Matter Reports. If a transaction displays significant “red flags” (such as a client refusing to provide identity documents, using highly erratic offshore payment methods, or structuring a purchase with no clear commercial logic), Cornerstone Conveyancing is legally obligated to report it to AUSTRAC.

Under the strict “tipping-off” rules, conveyancing professionals are legally prohibited from telling a client if a suspicious matter report has been filed. This is to ensure that federal investigations can proceed cleanly.

Making Your Next Property Move Seamless

While these new regulations introduce extra steps, they are an important way to help safeguard Australia’s financial system and ensure the real estate market remains transparent and fair.

The best way to prevent these updates from slowing down your settlement is early preparation. Don’t wait until the week of contract signing to dig out your entity trust deeds or verify your fund origins.

If a conveyancer needs to verify identity, request source of funds information, ask questions about ownership or control, or pause work while checks are completed, this may impact your transaction deadlines, so the earlier they receive requested information the better end result will be.

Cornerstone Conveyancing have fully integrated digital verification platforms to ensure these mandatory AUSTRAC checks are fast, secure, and stress-free. They handle the heavy lifting of compliance so you can focus on the excitement of your next property move.

If you are planning to buy or sell and have questions about how these new frameworks apply to your upcoming transaction, reach out to our team today.