From 1 July 2026, significant changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will come into effect, bringing real estate agencies under the same regulatory framework that has long applied to banks, financial institutions, and other regulated industries.
While these changes are designed to combat money laundering, terrorism financing, fraud, and other financial crimes, they will also introduce new requirements for anyone buying or selling property in Hervey Bay and across Australia.
At Active Agents, we believe it’s important to prepare our clients well in advance so there are no surprises when these changes take effect.
What Are AML/CTF Laws?
AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing.
These laws are designed to prevent criminals from using legitimate industries to conceal illegally obtained funds or finance unlawful activities.
While Australian banks and financial institutions have been subject to AML/CTF regulations for many years, the Federal Government has now expanded the legislation to include:
- Real estate agents
- Lawyers
- Accountants
- Conveyancers
- Professional service providers
- Dealers in precious metals and stones
From 1 July 2026, real estate agencies involved in the sale, purchase, or transfer of property will be required to comply with these regulations.
Why Are These Changes Being Introduced?
Property transactions often involve significant sums of money, making real estate an attractive target for those attempting to launder funds.
The new legislation aims to:
- Detect and prevent criminal activity
- Improve transparency in property transactions
- Strengthen Australia’s financial system
- Bring Australia into line with international best practice
While most buyers and sellers have nothing to worry about, everyone involved in a property transaction will be required to provide additional information.
What Will Buyers Need to Do?
If you’re purchasing property from 1 July 2026 onwards, expect your real estate agent to request more information than they currently do.
This may include:
- Proof of identity
- Occupation and employment details
- Information about countries you are connected to
- Details regarding the source of funds being used for the purchase
- Information about the purpose of the purchase
- Details regarding any trust, company, or entity involved in the purchase
- Identification of beneficial owners of companies or trusts
- Questions relating to Politically Exposed Persons (PEPs) and their associates
These checks go well beyond the standard identification process currently used in most property transactions.
What Will Sellers Need to Do?
Property sellers will also be subject to the new requirements.
When appointing an agent to sell your property, you may be asked to provide:
- Identity documents
- Employment or occupation information
- Information regarding countries you are associated with
- Details about ownership structures
- Trust and company documentation
- Information relating to beneficial ownership
- Politically Exposed Person declarations
Importantly, if a buyer is represented by a buyer’s agent, you may also need to provide information to that agency as part of their compliance obligations.
Can You Opt Out?
In short, no.
Under the new legislation, real estate agents will not be able to provide designated services until AML/CTF obligations have been completed.
This means agencies will be legally required to undertake these checks before acting on behalf of buyers or sellers.
Why Do I Need To Do This If My Bank Has Already Checked Me?
This will likely be one of the most common questions we hear.
Unfortunately, the legislation requires multiple industries to conduct their own AML/CTF assessments. While information sharing may be possible in some circumstances, duplication of checks between banks, lawyers, accountants, conveyancers, and real estate agents is expected to occur.
What Happens To My Personal Information?
Privacy remains an important consideration.
Real estate agencies will be required to securely collect and store AML/CTF information in accordance with both the AML/CTF legislation and the Privacy Act.
Records relating to AML/CTF compliance must generally be retained for at least seven years.
What Does This Mean for Hervey Bay Property Owners?
For most buyers and sellers, these changes will simply add another step to the property transaction process.
However, being prepared can help avoid delays.
If you’re considering buying or selling property in Hervey Bay after 1 July 2026, it’s worth understanding that additional identification and source-of-funds documentation may be required early in the process.
Working with an experienced local real estate agent who understands the new requirements will help ensure your transaction proceeds as smoothly as possible.
Preparing for the Future
While July 2026 may seem a long way off, real estate agencies across Australia are already preparing for these significant changes.
At Active Agents, we’re committed to staying ahead of industry developments so our buyers and sellers can navigate these new requirements with confidence.
If you’d like to learn more about how the AML/CTF changes may affect your next property transaction, we’re here to help.
Thinking of buying or selling in Hervey Bay?
Contact our team today for expert advice on the local market and the upcoming changes affecting Queensland property transactions.