From 1 July 2026, Australia’s commercial real estate industry will enter a new regulatory era.
The Australian Government is expanding the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) to include the real estate sector. Regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC), these reforms will apply to commercial real estate businesses that provide designated services, including brokering the sale, purchase, or transfer of real estate.
The reforms are designed to strengthen Australia’s ability to detect and prevent money laundering, terrorism financing and other serious financial crimes, bringing the real estate sector into line with other regulated industries such as banking and financial services.
Why are these reforms being introduced?
Property transactions can involve significant sums of money, making the real estate sector attractive to criminals seeking to disguise or legitimise the proceeds of crime.
AUSTRAC has identified the Australian real estate sector as being at a high risk of money laundering. The new legislation is intended to increase transparency, strengthen due diligence, and provide greater protection for businesses, clients and the wider community.
These obligations are not unique to McGees Property – they are mandatory requirements that will apply to regulated real estate businesses across Australia.
What does this mean for our clients?
As part of these reforms, our onboarding processes at McGees Property will change.
From 1 July 2026, you will be asked to provide additional information before we can provide certain regulated real estate services. This is a legal requirement under the AML/CTF Act and forms part of the Customer Due Diligence (CDD) process.
Depending on the nature of your transaction, we may ask you to provide:
- Identification documents, such as a passport or driver’s licence, to verify your identity.
- Information regarding the source of your wealth and the source of funds being used in the transaction.
- Details of ownership structures, including companies, trusts or other entities where applicable.
- Additional information where required to meet our legal obligations under the AML/CTF Act.
While this may introduce additional steps to the transaction process, these measures are designed to protect both our clients and the integrity of Australia’s property market.
Protecting your information
We understand that providing personal and financial information is an important responsibility, and we are committed to protecting your privacy.
McGees Property has partnered with AMLHUB to assist with our AML/CTF compliance obligations. Information collected as part of the Customer Due Diligence process will be managed securely and in accordance with the Privacy Act 1988 (Cth) and applicable Australian privacy requirements.
Our secure verification processes are designed to safeguard your information while ensuring we meet our legal obligations.
To learn more about AMLHUB and its secure verification platform, visit https://amlhub.com.au/.
Preparing for the future
The introduction of the AML/CTF reforms represents one of the most significant regulatory changes to the Australian real estate industry in recent years.
At McGees Property, we are proactively reviewing our systems, processes and training to ensure we continue to provide a professional, transparent and compliant service. By preparing now, we can help make the transition as smooth as possible for our clients while continuing to deliver the trusted advice and service they expect.
If you have any questions about these upcoming changes or how they may affect your property transaction, our team is here to help.
References
Australian Transaction Reports and Analysis Centre (AUSTRAC). (2024). About the AML/CTF reforms. https://www.austrac.gov.au/industry-and-business/about-amlctf-reforms
Australian Transaction Reports and Analysis Centre (AUSTRAC). (2024). Preparing for the changes if you’re newly regulated. https://www.austrac.gov.au/industry-and-business/about-amlctf-reforms/preparing-changes-if-youre-newly-regulated
Australian Transaction Reports and Analysis Centre (AUSTRAC). (2024). Risk insights and indicators: Suspicious activity in the real estate sector. Australian Government. https://www.austrac.gov.au/industry-and-business/education-and-resources/publications-and-resources/risk-insights-and-indicators-suspicious-activity-real-estate-sector
Australian Transaction Reports and Analysis Centre (AUSTRAC). (2024). Real Estate Program Starter Kit. https://www.austrac.gov.au/reforms/sector-specific-guidance/real-estate-guidance/real-estate-program-starter-kit
AMLHUB. Guide to AML/CTF for Real Estate. https://amlhub.com.au/
Disclaimer: This article is intended to provide general information about the upcoming AML/CTF reforms and does not constitute legal, financial or compliance advice. The information is current at the time of publication. If you require advice about how these reforms apply to your individual circumstances, you should seek independent professional advice.