Australia’s property market is preparing for one of its biggest compliance changes in years, with new anti-money laundering (AML) rules taking effect on July 1, 2026. The reforms will bring real estate agents, conveyancers, lawyers and accountants under stricter obligations designed to prevent illicit funds from moving through the housing sector.
While the changes are primarily aimed at tackling money laundering, they are also arriving at a time when property transactions are increasingly being targeted by cybercriminals. The issue was highlighted by a Melbourne first-home buyer who reportedly lost $50,000 after fraudsters intercepted communications during his property purchase and redirected funds to a scam account.
For many Australians planning to buy or sell property this year, the message is becoming clear: property transactions are no longer just about finding the right home or negotiating a sale price. Security, identity verification and source-of-funds checks are becoming just as important.
More checks for buyers and sellers from July 1
The new rules form part of a broader expansion of Australia’s anti-money laundering framework overseen by AUSTRAC. The regulator has argued that Australia’s property market has historically been vulnerable to criminals seeking to hide or move money through real estate transactions.
As a result, professionals involved in property deals will be required to carry out more detailed customer checks and maintain stronger records. Buyers and sellers may be asked to provide identification documents, details about how a property purchase is being funded and evidence showing where deposit funds originated.
For straightforward transactions, the additional requirements may add only a few extra steps. However, transactions involving family gifts, overseas funds, trust structures or more complex financing arrangements could face greater scrutiny as businesses work to satisfy the new compliance standards.
The reforms are expected to increase administrative responsibilities across the sector, but supporters argue they will help improve transparency and reduce risks associated with financial crime.
Industry responds to growing fraud concerns
The regulatory changes are being introduced against a backdrop of rising concern about payment fraud during property settlements. Large sums of money often move between multiple parties in a short period of time, creating opportunities for cybercriminals to exploit weaknesses in communication.
One common tactic involves scammers impersonating conveyancers or legal representatives and sending fake bank account details shortly before settlement. In other cases, simple human errors can cause funds to be transferred to the wrong account.
To address these risks, Sydney-based law firm Riverstone Partners has launched Agency Settlements, a service designed specifically for real estate agencies. The platform aims to reduce fraud exposure and administrative workload by managing settlement payments through a law-firm trust structure.
The service is integrated with PEXA, Australia’s electronic property settlement network, allowing transactions to be managed within an established digital settlement environment rather than relying on manual communication of payment details.
According to Riverstone Partners, the platform can save agents up to two hours of administrative work per settlement while providing additional safeguards around payment handling. Agencies pay a flat fee of $169 per settlement to use the service.
The company says interest has been growing since launch, with agencies across Greater Sydney already using the system and additional businesses joining each week.
What property buyers should do now
The upcoming changes highlight the importance of preparation before entering a property transaction. Buyers should ensure identification documents are readily available, maintain records showing the source of their funds and be prepared for additional verification requests throughout the purchasing process.
Just as importantly, experts continue to warn against relying solely on email or text messages when receiving bank account information. Payment instructions should always be verified directly with a solicitor, conveyancer or trusted representative using independently confirmed contact details.
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The stricter checks are being introduced as Australia’s property sector continues to expand in value and importance. With the nation’s housing stock now worth trillions of dollars, regulators are increasingly focused on ensuring funds moving through property transactions can be properly verified. The issue has gained additional attention amid the ongoing growth of Australia’s $12.3 trillion housing market, which remains one of the country’s largest stores of household wealth.
Although the July 1 reforms will require more documentation and due diligence, regulators and industry participants believe the measures will help strengthen confidence in property transactions while reducing opportunities for fraud, scams and money laundering. For buyers and sellers, understanding the new requirements before entering the market could make the process significantly smoother.
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