If you’re planning to buy property in Brisbane, the Gold Coast or elsewhere in Australia, you may soon notice property professionals asking for more information than they have in the past.
From 1 July 2026, significant changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation will begin affecting the way property transactions are handled. These reforms will create new responsibilities for buyer’s agents, real estate agents and other professionals involved in property transactions.
For buyers, this may mean providing additional identification, confirming who is purchasing the property, and, in some cases, supplying information about the source of funds being used for the purchase.
While these changes may sound daunting, most buyers will only notice a few extra administrative steps. Understanding what is changing and why can help make the property buying process smoother.
What Are the New AML/CTF Laws?
AML stands for Anti-Money Laundering and CTF stands for Counter-Terrorism Financing.
These laws are designed to prevent criminals from using legitimate businesses and financial systems to conceal the proceeds of crime or fund illegal activity. Australia already has an established AML/CTF framework that applies to banks, lenders and many financial institutions.
If you have ever applied for a home loan, opened a bank account or transferred a large sum of money, you have likely already completed identity verification checks as part of these requirements.
The latest reforms extend those obligations to additional industries, including many businesses involved in property transactions.
The reforms are overseen by AUSTRAC (Australian Transaction Reports and Analysis Centre), Australia’s financial intelligence agency and AML regulator.
Why Is the Property Industry Being Included?
Property transactions often involve:
- Large sums of money
- Complex ownership structures
- Domestic and international fund transfers
- Companies, trusts and SMSFs
- Multiple parties involved in a single transaction
Because of these factors, the property sector has been identified internationally as an area where greater transparency can help strengthen the integrity of financial systems.
Importantly, the reforms are not based on the idea that ordinary property buyers are doing anything wrong. They are designed to help businesses involved in property transactions understand who they are dealing with and identify unusual or suspicious activity when required.
What Changes from 1 July 2026?
Under the new rules, buyer’s agents and many real estate professionals will become regulated entities under Australia’s AML/CTF regime.
This means they will need to:
- Register with AUSTRAC
- Implement AML/CTF compliance programs
- Verify client identities
- Maintain compliance records
- Monitor for suspicious activity
- Report suspicious matters where required by law
For property buyers, the biggest practical change will be the extra information that may be requested during onboarding.
What Information Will Property Buyers Need to Provide?
For most buyers, the process will be straightforward.
You may be asked to provide:
- Driver licence
- Passport
- Proof of address
- Confirmation of the purchasing entity
If you are purchasing through a company, trust or self-managed superannuation fund (SMSF), additional documents may be required.
For example:
- Trust deed
- Company information
- SMSF documentation
- Details of directors, trustees or beneficial owners
Many of these requirements are similar to the information already requested by banks and lenders when arranging finance.
Source of Funds vs Source of Wealth
One area that may be unfamiliar to buyers is the difference between source of funds and source of wealth.
Source of funds refers to the specific money being used for a particular purchase.
Examples include:
- Savings accumulated over time
- Proceeds from the sale of another property
- Share investments
- Inheritance
- Funds gifted by family members
Source of wealth refers to how a person accumulated their overall financial position over a longer period.
Examples include:
- Employment income
- Business ownership
- Long-term investments
- Property ownership
- Inheritance
Not every buyer will be asked to provide this information. However, additional due diligence may be required in some cases, particularly where ownership structures are complex or the legislation requires enhanced verification.
A Practical Example
Sarah and Tom are buying their family home in Brisbane using savings accumulated over many years of employment.
In most cases, they would likely only need to complete identity verification and provide basic purchasing details.
By contrast, a buyer purchasing through a family trust using proceeds from an overseas property sale may be asked to provide additional supporting documentation.
Most buyers will fall into the first category and should expect the process to be relatively simple.
Why You May Need to Complete Identity Checks Multiple Times
One of the most common questions buyers are likely to ask is:
I’ve already provided my identification to my bank. Why do I need to provide it again to my buyer’s agent?
Unfortunately, this is one of the areas where the new AML/CTF reforms may create some frustration for both buyers and sellers.
While the reforms are intended to improve transparency and strengthen the integrity of Australia’s property market, they also create compliance obligations for multiple parties involved in a transaction.
A typical property purchase may involve:
- A mortgage broker
- A bank or lender
- A buyer’s agent
- A selling agent
- A solicitor or conveyancer (for both the buyer and seller)
- Financial institutions involved in transferring funds
Each of these organisations may have its own obligations under AML/CTF legislation and may not be able to rely on checks performed by another party.
As a result, buyers and sellers may need to provide the same identification documents several times during a single transaction.
A Typical Example
Let’s assume a Brisbane family purchases a home using finance.
Before settlement, they may be required to complete identity verification with:
- Their mortgage broker
- Their lender
- Their buyer’s agent
- Their solicitor or conveyancer
- The selling agent
- The seller’s solicitor or conveyancer
Similarly, the seller may also need to complete identity verification with their selling agent, solicitor and lender.
In some transactions, buyers and sellers could find themselves completing identity checks five or more times before settlement.
While this duplication may seem unnecessary, each business is ultimately responsible for meeting its own legal obligations.
Our Recommendation
The easiest way to avoid delays is to expect identity verification to be a routine part of buying property and to respond quickly when information is requested.
Providing information early in the process can help reduce the risk of delays later when a suitable property is identified.
Will There Be Additional Costs?
The reality is that compliance comes at a cost.
Under the new legislation, buyer’s agents and real estate professionals will need to implement and maintain systems that simply did not exist before.
These obligations include:
- Staff training
- Compliance programs
- Record keeping
- Identity verification procedures
- Ongoing monitoring
- Regulatory reporting
- Independent verification systems
Most businesses will rely on specialist third-party compliance providers to help meet these obligations.
These systems typically perform:
- Electronic identity verification
- Document authentication
- Watchlist screening
- Politically exposed person (PEP) screening
- Record retention
- Audit trail management
While these systems improve efficiency and accuracy, they also add operating costs. As a result, many agencies are expected to introduce separate AML/CTF compliance fees.
Your Property Hound’s AML/CTF Compliance Fee
At the time of publication, Your Property Hound charges a fixed AML/CTF compliance fee of $130 + GST per purchase.
The fee applies regardless of:
- Whether there is one purchaser or multiple purchasers
- Whether the property is purchased in personal names or through a company, trust, or SMSF
- The value of the property being purchased
The fee helps cover the cost of mandatory identity verification and compliance processes required under Australian law.
We have chosen to disclose this fee separately so clients can clearly see the cost of AML/CTF compliance, rather than having it built into our standard service fees.
Privacy and Data Security
Whenever personal information is collected, it is reasonable for buyers to ask how that information will be stored and protected.
At Your Property Hound, we understand that clients are entrusting us with sensitive personal information, and we take that responsibility seriously.
The new AML/CTF laws require certain information to be collected and retained. However, businesses must also comply with privacy legislation and take reasonable steps to protect client information.
How We Handle Client Information
We are committed to ensuring that:
- Information is only collected where necessary
- Information is handled confidentially
- Access is restricted to authorised personnel
- Information is stored using secure systems
- Information is retained only for the period required by law
Where appropriate, we use reputable third-party verification providers to help perform identity checks securely and efficiently.
What Information Will We Request?
For most clients, this will simply involve:
- Government-issued photo identification
- Confirmation of the purchasing entity
- Additional supporting documents where required
We will only request information that is necessary to meet our legal obligations.
Frequently Asked Questions
From 1 July 2026, buyer’s agents are required by law to verify the identity of their clients before providing certain services. These requirements form part of Australia’s AML/CTF legislation.
Each business has its own compliance obligations and may not be able to rely on checks performed by another organisation. As a result, buyers may need to complete identity verification several times during a transaction.
No. Many buyers will only need to complete standard identity verification. Additional information may only be required where legislation requires enhanced due diligence or where a transaction is considered higher risk.
Additional documentation may be required to identify the individuals who ultimately own or control the purchasing entity. This is a standard requirement under the legislation.
Potentially. To minimise delays, we recommend completing identity verification as early as possible during the onboarding process.
No. These requirements apply across the real estate industry and are being introduced nationally under Australian AML/CTF legislation.
At the time of publication, Your Property Hound charges a fixed AML/CTF compliance fee of $130 + GST per purchase.
The fee helps cover the cost of mandatory identity verification, compliance screening, record keeping and third-party compliance systems required under Australian law.
Final Thoughts
The introduction of AML/CTF obligations to Australia’s real estate industry represents one of the most significant regulatory changes affecting property buyers in recent years.
For most buyers, the practical impact will be relatively minor. You should simply expect identity verification and compliance checks to become a routine part of the property buying process, much like obtaining finance approval or signing contract documents.
While there may be some additional administration, understanding what is required and providing information promptly should help minimise inconvenience.
At Your Property Hound, we are committed to making the process as simple and efficient as possible while continuing to provide the high level of service our clients expect.
If you’re planning to buy property in Brisbane, the Gold Coast and would like expert assistance navigating the purchasing process, we’d be happy to help – please Contact Us.
Disclaimer
This article is general information only and reflects our understanding of Australia’s AML/CTF reforms at the time of publication. Legislative requirements, regulatory guidance and industry practices may change over time.
Readers should obtain independent legal, financial, taxation or compliance advice relevant to their personal circumstances before making decisions based on the information contained in this article.