Real Estate Agents will become part of the Federal Government’s crackdown on money laundering, following the introduction of new legislation.

The legislation which will be enacted from March 2026 means real estate agents may need to further scrutinise some of their clients. Under the legislation real estate agents, among other professionals including lawyers and accountants, will need to report suspicious transactions.

The “Tranche 2” laws will bring Australia into line with other countries that are trying to stop criminals from converting ill-gotten funds into money that looks legitimate. Lawyer, Lachlan Gepp, of Addisons, says the legislation may cost agents some business as they won’t be able to take on customers whose details they can’t verify.

According to the Real Estate Institute of Australia the introduction of similar rules in New Zealand had cost agencies between $30,000 and $60,000, depending on size. The legislation once introduced will mean that Australian laws are in line with the international standards set by the Financial Action Task Force (FATF).