New AML Rules Are Coming to Australian Property

From 1 July 2026, buying or selling property in Australia will include a new layer of identity and source-of-funds checks.

For most Queensland buyers and sellers, this should not be something to fear. It is simply something to be ready for.

The changes form part of Australia’s Anti-Money Laundering and Counter-Terrorism Financing reforms, commonly known as the Tranche 2 reforms. These reforms bring real estate professionals, buyer’s agents, property developers, conveyancers, lawyers and accountants into the same compliance framework that banks have operated under for many years.

In practical terms, it means your real estate agent will need to complete certain checks before, or at the start of, a property transaction.

That may sound formal, but for most everyday residential transactions, the process should be straightforward. The key is preparation.

Why are the rules changing?

Property has long been recognised as an area that can be misused to move or hide illegal funds.

Australia’s new AML/CTF reforms are designed to make that harder by creating clearer obligations for the professionals involved in property transactions. From 1 July 2026, real estate agencies will need to have proper systems in place to verify clients, understand where transaction funds are coming from and keep appropriate records.

This is not about making property harder to buy or sell.

It is about protecting the integrity of the property market and ensuring Australia’s real estate sector meets modern compliance expectations.

What buyers may be asked for

If you are buying property in Queensland, you should expect some identity and source-of-funds checks to happen earlier in the process.

For most buyers, this may include:

• Current photo identification, such as a driver licence or passport
• Proof of address, such as a utility bill, bank statement or rates notice
• Evidence of where the purchase funds are coming from
• Bank pre-approval or loan documentation where finance is being used
• Additional entity documents if buying through a company, trust or SMSF

For many standard residential buyers using a bank loan, the source-of-funds check should be relatively simple. A formal loan approval or pre-approval will often provide a clear starting point.

Where the transaction is more complex, such as a company purchase, trust structure, overseas buyer, gifted funds, inheritance or cash component, more information may be needed.

That does not mean the transaction cannot proceed. It simply means the agent may need to ask more questions and gather more documentation.

What sellers may be asked for

Sellers will also need to complete identity checks.

When you appoint an agent to sell your property, the agency will need to verify who they are acting for and confirm the ownership structure of the property.

For most sellers, this may include:

• Current photo identification
• Proof of address
• Confirmation that your name matches the property ownership records
• Company or trust documents if the property is owned by an entity

If the property is owned by a company, trust or SMSF, your agent may also need to identify the people who ultimately own or control that entity.

This is one of the areas where being organised early can make a real difference.

Will this slow down property transactions?

For most standard Queensland residential transactions, the additional checks should be manageable.

The biggest difference is timing.

Rather than leaving identification and documentation until late in the process, buyers and sellers should expect these checks to happen earlier. A well-prepared agency will have systems in place to make this as smooth as possible.

Transactions that may take longer include those involving:

• Trusts, companies or SMSFs
• Overseas buyers or sellers
• Unusual payment arrangements
• Large cash components
• Gifted funds or inheritance
• More complex ownership structures

The more complex the transaction, the more important it becomes to have your documentation ready before you need it.

What your agent is not doing

These checks are not the same as a bank loan assessment.

Your real estate agent is not there to assess your borrowing capacity, credit score or financial position in a broad sense.

The purpose of the checks is much narrower.

Your agent needs to confirm who they are dealing with, understand the basic source of funds involved in the transaction and meet the legal obligations that apply under the AML/CTF framework.

In some cases, agents may also have reporting obligations if something appears unusual or suspicious. These obligations are part of the law and are designed to protect the wider market.

How to prepare before 1 July 2026

The best thing buyers and sellers can do is get organised early.

Before you list, buy or make an offer, it may be useful to have the following ready:

1. Current photo ID
2. Proof of address
3. Bank pre-approval if you are buying with finance
4. Company, trust or SMSF documents if relevant
5. Clear records for gifted funds, inheritance or proceeds from another sale

If you are unsure what applies to your situation, speak with your agent early. The right advice at the beginning can help avoid delays later.

What this means for Queensland property

For Queensland, these reforms arrive at a time when property decisions already carry a lot of weight.

Buyers are navigating finance, affordability, competition and timing. Sellers are weighing presentation, price, market conditions and their next move. Adding another compliance step may feel like one more thing to manage, but in practice, it should become part of the normal rhythm of a property transaction.

The agencies that handle this well will be the ones that make the process feel clear, calm and organised from the beginning.

That matters.

Because real estate is already one of the biggest financial decisions most people make. Buyers and sellers deserve to know that the people guiding them are not only focused on the result, but also on the process behind it.

For RealWay, this is where good service shows up. In the details. In the preparation. In helping people understand what is needed before it becomes stressful.

Compliance may be changing, but the heart of real estate remains the same: people making important life decisions, and needing the right guidance around them.

Thinking of buying or selling in Queensland?

Whether you are preparing to list, planning your next move or simply wanting to understand what these changes may mean for you, your local RealWay team can help you take the next step with confidence.

Find your local RealWay office and speak with our team today:
https://realway.com.au/offices

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