The Numbers Behind Australia’s New Laws
Australia’s property market has a problem most buyers and sellers never think about: for years, it’s been used by criminals to launder money on a significant scale. New laws coming into force on 1 July 2026 are designed to change that — and the numbers explain why these reforms were badly overdue.
What is property money laundering? Money laundering through property involves criminals purchasing real estate using the proceeds of crime — often through shell companies, trusts, or nominee owners to obscure the true source of funds. Once the property is sold, the criminal receives “clean” money in return.
Property is particularly attractive because transactions are high-value, complex, and previously had minimal identity verification requirements in Australia.
The scale of the problem AUSTRAC has identified real estate as a high-risk sector for money laundering in Australia, with hundreds of millions of dollars suspected to flow through property transactions connected to criminal activity each year. Globally, the UN Office on Drugs and Crime estimates that approximately 2–5% of global GDP — around US$800 billion to $2 trillion — is laundered annually, with property being one of the primary vehicles.
Why Australia was slow to act Australia has been on an international watchdog list maintained by the Financial Action Task Force (FATF) — the global AML standard-setter — due to the absence of AML obligations on real estate agents. The UK, EU, New Zealand, and Canada have had these obligations in place for years. Tranche 2 closes this gap.
What changes from 1 July 2026: All real estate agencies are now classified as “reporting entities” under the AML/CTF Act. They must verify client identities, conduct ongoing due diligence, maintain 7-year records, and report suspicious activity to AUSTRAC. Good news: Meier Paul Real Estate has been fully set up to meet these obligations. These laws make Australian property more secure and trustworthy for the vast majority of buyers and sellers who have absolutely nothing to hide. A cleaner market means fairer prices, less criminal distortion, and greater confidence for everyone involved in a transaction.
If you have any questions, don’t hesitate to call us or email admin@meierpaul.com.au or call 08 8464 7450.
