If you've bought or sold property before, you may notice things feel a little different this time. Your agent is asking for more information, more documentation, and more detail about who you are and how you're funding the transaction. That's not bureaucracy for the sake of it. It's the law, and it changed on 1 July 2026.

Note: This post is for general information only and is not legal or financial advice. Please speak with your legal adviser or the relevant regulatory body for guidance specific to your situation.

What changed, and why

On 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations came into force for real estate professionals across Australia. The legislation, known as the AML/CTF Amendment Act (Tranche 2), passed both Houses of Parliament on 29 November 2024 and brought approximately 90,000 new entities into the regulatory framework, including real estate agents, buyer's agents, property developers, lawyers, accountants, and conveyancers.

Until now, Australia's AML/CTF regime only covered banks and financial institutions. Real estate was a known gap. AUSTRAC's 2024 Money Laundering National Risk Assessment rated the domestic real estate sector as a very high money laundering risk. More than $60 billion in illicit funds passes through the Australian economy each year, and property is one of the most exploited vehicles.

$60B+
Illicit funds laundered through the Australian economy annually
$1B+
Laundered through Australian real estate by foreign-linked criminals (AUSTRAC, 2020)
59%
Of all AFP-seized illegal assets (2019-24) held in real estate: $720M across 370 properties
90,000
New businesses brought under AML/CTF regulation from 1 July 2026

What agents are now required to do

Real estate agents must now meet a formal set of obligations before and during property transactions. These are not optional and cannot be waived for existing clients or repeat customers.

Enrol with AUSTRAC

All agencies providing designated services must register with AUSTRAC, the federal financial intelligence agency that regulates and enforces these rules.

Verify client identity

Agents must confirm who they're acting for before the transaction progresses, including verifying photo identification for all parties.

Identify beneficial owners

For purchases through companies, trusts, or complex structures, agents must trace ownership to the natural persons who ultimately control the entity.

Screen for risk

Clients are screened against sanctions lists and politically exposed persons (PEPs) databases as part of standard due diligence.

Keep records for 7 years

All identity verification records and transaction documents must be retained for a minimum of seven years.

Report suspicious activity

Agents must file suspicious matter reports with AUSTRAC when a transaction raises concerns, regardless of whether the transaction proceeds.

What you'll be asked to provide

For most people buying or selling property, this will be straightforward. The standard identity verification process requires one or more of the following documents:

Accepted identity documents

  • Australian driver's licence
  • Australian or foreign passport (accepted up to 2 years after expiry)
  • Medicare card
  • Australian birth certificate
  • Australian citizenship certificate
  • myID digital credential

If buying through an entity

  • Company or trust registration documents (ABN/ACN)
  • Trust deed or ASIC company extract
  • Photo ID for all directors, trustees, or anyone with 25%+ ownership

You may also be asked a few additional questions about the source of funds for the transaction, and whether you hold (or are closely related to someone who holds) a prominent public position. This is the "politically exposed persons" (PEPs) screening. It is not an accusation; it is a standard regulatory check that applies across the industry.

The timeline: how we got here

2006
Australia's original AML/CTF Act commences, covering banks, casinos, and financial institutions only. Real estate is excluded.
29 Nov 2024
The AML/CTF Amendment Act (Tranche 2) passes both Houses of Parliament, extending the regime to real estate, legal, and accounting professionals.
Aug 2025
AUSTRAC tables the finalised AML/CTF Rules in Parliament. Sector-specific guidance issued for real estate professionals.
31 Mar 2026
AUSTRAC enrolment period opens. Real estate agencies begin registering and implementing their AML/CTF compliance programs.
1 Jul 2026
New AML/CTF obligations commence. All real estate agents, buyer's agents, and property developers with direct sales must comply from this date.

What this means if you're selling a property

If you're planning to sell an investment property on the Sunshine Coast or anywhere in Australia, expect your agent to walk you through an identity verification process before your property is listed or a contract is signed. This is now a legal requirement, not optional.

The best way to avoid delays is to be prepared. Have your photo identification ready, respond promptly to any requests, and don't be concerned if your agent asks questions that weren't part of the process in previous years. They're not being overly cautious. They're complying with legislation that now applies across the industry.

"Being asked to verify your identity is not a signal that your agent is suspicious of you. It's the same reason banks verify identity for new accounts: a structural safeguard that applies to everyone, every time."

Does this apply to rental properties?

This is the question we've been asked most by landlords, and the answer is clear: rental properties and property management are excluded from the new AML/CTF requirements.

The obligations apply to the buying and selling of property, not to leasing, rent collection, routine inspections, or property management. AUSTRAC's Rules explicitly state that property management activity does not constitute a designated service under the new regime.

Does AML/CTF apply to my rental property?
No. Leasing and property management are excluded. The new obligations apply to property sales only.
What if I sell a property I've been renting out?
Yes. When you sell, your agent must comply with AML/CTF identity verification and due diligence requirements for that transaction.
Does my tenant need to provide identity documents?
Not under AML/CTF rules. Tenancy applications already require identity checks under standard property management practice. Those are separate from the new legislation.

What about the penalties for agents who don't comply?

The consequences for non-compliance are significant, which is why agents are taking these obligations seriously. AUSTRAC can impose civil penalties of up to $33 million for businesses and $6.6 million for individuals. Criminal penalties for intentional breaches can reach 25 years' imprisonment. The precedent is real: Westpac was fined $1.3 billion in 2020 and Crown Resorts $450 million in 2021 for AML failures in the financial sector.

These penalties won't be imposed on clients. They apply to agents and businesses that fail to implement their obligations. But they explain why the industry is moving quickly to get compliant, and why your agent may seem more thorough than they used to be.

The bottom line for Sunshine Coast property owners

If you own rental properties and aren't selling, nothing about your day-to-day arrangements changes. If you're planning to sell, expect a straightforward identity verification process as part of the transaction. It's a small step with a clear purpose: ensuring the integrity of Australia's property market for everyone in it.

At R&C Property Group, we manage properties across Nambour, Woombye, Buderim, Palmwoods, Kiels Mountain and the surrounding hinterland. If you have questions about how these changes might affect an upcoming transaction, we're happy to talk it through.

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