Reforms raise fears of transaction delays and increased costs
Australia’s property sector is facing fresh regulatory changes as new anti-money laundering (AML) rules are set to take effect from July 2026. While the reforms aim to enhance the transparency and integrity of property transactions, a majority of industry participants have expressed concern over the increased compliance burden.
The draft amendments, outlined in AUSTRAC’s second exposure draft of the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025, will extend AML obligations to professionals involved in real estate deals – including agents, lawyers, conveyancers, buyer and seller advocates, and developers.
Under the proposed regime, all parties in a property sale will be required to conduct due diligence on buyers and sellers, monitor transactions for suspicious activity, and report any risks related to money laundering or terrorism financing to AUSTRAC.
Digital property settlements platform PEXA has welcomed the government’s move to engage with industry feedback. The new rules will also allow for data sharing across the transaction chain, which PEXA says could help improve efficiency and compliance outcomes.
“Through these rules, the Federal Government and AUSTRAC have listened to the industry and are demonstrating their support for an efficient and effective industry solution,” said Kate Camilleri, PEXA’s general manager of strategy and delivery. “PEXA is well placed to deliver a solution to reduce the complexity and cost while increasing the effectiveness of detecting money laundering through property transactions in Australia.”
In a recent independent survey commissioned by PEXA, 69% of respondents flagged concerns about rising complexity and compliance costs. More than 300 participants – including lawyers, conveyancers and real estate agents – were polled to gauge industry readiness.
Findings showed significant gaps in awareness and preparation. Sixty-five percent of legal professionals were unfamiliar with the reforms, and 78% said they were not prepared. In contrast, 29% of agents reported low familiarity, and just 25% felt unprepared. Across the board, many noted only a moderate understanding of the reforms’ likely impact.
More than half of respondents also expressed worries over potential delays to settlements, cost increases, and impacts on client service delivery. Smaller firms were particularly concerned about their ability to handle the added administrative load.
Despite the apprehension, survey participants acknowledged that the changes could improve the sector by deterring criminal activity and attracting more credible investors.
Camilleri said the findings support PEXA’s ongoing engagement with stakeholders to explore how existing digital settlement infrastructure could be adapted to help manage the compliance requirements.
“It is accepted across the industry that these reforms will be a challenge, and we all need to work together to find the best way forward for all participants,” she said. “While work is underway to educate and inform the sector about what is ahead, PEXA understands that more needs to be done to develop an innovative solution that will give confidence to all participants and ensure the market is protected.”
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