Real estate agents will be included in the Federal Government’s efforts to combat money laundering with the introduction of new legislation set to take effect in March 2026.

This legislation requires real estate agents, along with other professionals such as lawyers and accountants, to closely scrutinise their clients and report any suspicious transactions.

The “Tranche 2” laws aim to align Australia with other countries striving to prevent criminals from laundering illicit funds into legitimate-looking money.

Lachlan Gepp, a lawyer at Addisons, notes that this legislation could potentially reduce business for agents, as they may be unable to accept clients whose identities they cannot verify.

The Real Estate Institute of Australia reports that similar regulations in New Zealand have cost agencies between $30,000 and $60,000, depending on their size.

Once implemented, this legislation will ensure that Australian laws comply with international standards set by the Financial Action Task Force (FATF).