Tranche 2 AML/CTF laws could help ease house prices, InfoTrack says

Property and legal tech company InfoTrack has said that incoming anti-money laundering regulations for accountants, lawyers and real estate agents could help alleviate pressure on Australia’s housing market by curbing illicit money in the property sector.

From 1 July 2026, lawyers, real estate agents and accountants who provide ‘designated services’ will need to comply with financial regulator AUSTRAC’s anti- money laundering and counter-terrorism financing (AML/CTF) regulations.

Lee Bailie, chief operating officer at InfoTrack, said the Tranche 2 reforms could alleviate pressure on house prices by stemming the flow of illicit money in Australia’s real estate market.

“These reforms will reshape how money moves through property transactions in Australia,” Bailie said.

“By restricting the flow of illicit money into real estate, the reforms have the potential to ease artificial pressure on housing demand and, over time, pricing.”

While AUSTRAC said it was difficult to measure the true scale of money laundering in Australia’s real estate market, it remains an attractive jurisdiction for money launderers due to its stable institutions, strict rule of law and robust legal frameworks protecting assets and wealth from lawful confiscation.

Australia’s high-value real estate market also made it an attractive target for criminals looking to conceal dirty money.

“Real estate is a widely exploited asset type for money laundering in Australia. This is due to the market stability and value appreciation, profit-generation, negative gearing benefits, housing and rental income functions of the sector,” AUSTRAC explained in its 2024 national money laundering risk assessment.

“So long as criminals can invest their proceeds into the Australian property market, real estate agents and other professionals will remain vulnerable to criminal exploitation, both wittingly and unwittingly,” it added.

Criminals could launder money through real estate by manipulating property values, reselling in quick succession at a higher price, using illicit funds to pay for renovations that further boosted home values, using rental payments to legitimise income and setting up complex legal structures to obfuscate property ownership.

Tranche 2 reforms would place the onus on real estate professionals, accountants and lawyers who help facilitate these structures and transactions to conduct proper due diligence and report suspicious activity to authorities.

AUSTRAC anticipated that the reforms would close regulatory gaps which made Australia’s real estate market an easy target for money launderers.

InfoTrack’s Bailie said that this was good news for ordinary Australians looking to buy a home, as it would reduce demand driven by illicit money in the real estate sector.

“Illicit money hasn’t just undermined the integrity of the financial system. It has distorted demand and pushed prices higher, making it harder for first-home buyers and families to compete,” Bailie said.

“Reducing that influence means reducing artificial price pressure and that’s a positive step for genuine buyers.”