Compliance
Compliance Spotlight: Navigating Australia’s AML/CTF Expansion and Tax Misconduct Laws
With anti-money laundering laws expanding and tougher penalties for tax advisors, compliance isn’t optional—it’s mission critical.
By NomadicTax Research Team • 5-8 min read • July 31, 2026
## Recent Compliance Expansions and Legal Expectations
Laws in Australia are heightening oversight for professional services and trust structures. Two major compliance shifts have taken effect recently:
- **AML/CTF law expansion (from 1 July 2026):** Real estate agents, lawyers, accountants, conveyancers, and dealers in precious metals/stones now fall under the AML/CTF regime. They must enrol with AUSTRAC by 29 July and begin compliance with reporting, staff training, risk-management and appoint a compliance officer. ([austrac.gov.au](https://www.austrac.gov.au/news-and-media/news/anti-money-laundering-and-counter-terrorism-laws-cover-thousands-more-businesses?utm_source=openai))
- **Stronger penalties for tax misconduct:** Legislation underway under the **Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026** adds criminal and civil penalties for tax advisors who breach professional conduct codes, including doubling maximum registration terminations to 10 years. Also makes amendments to the CGT regime for foreign residents. ([ministers.treasury.gov.au](https://ministers.treasury.gov.au/ministers/andrew-leigh-2025/media-releases/stronger-penalties-tax-misconduct?utm_source=openai))
## What This Means for Businesses and Professionals
| Stakeholder | Key Compliance Obligations | Risks of Non-Compliance |
|-------------|----------------------------|----------------------------|
| Accountants, Lawyers, Real Estate, Trust Professionals | Register with AUSTRAC; develop AML/CTF program; report suspicious transactions; adhere to updated Code of Professional Conduct; ensure accurate CGT withholding, especially for foreign clients. | Civil penalties; criminal charges; registration suspension or loss; reputational damage. |
### Action Plan to Meet New Obligations
1. **Check whether your services are newly regulated.** If you provide any of the designated services above, you need to enrol promptly with AUSTRAC. ([austrac.gov.au](https://www.austrac.gov.au/news-and-media/news/anti-money-laundering-and-counter-terrorism-laws-cover-thousands-more-businesses?utm_source=openai))
2. **Implement AML/CTF compliance programs.** This includes appointing a compliance officer, training staff, and setting up reporting mechanisms aligned with AUSTRAC guidance. Starter kits and sector-specific guidance are available. ([austrac.gov.au](https://www.austrac.gov.au/newly-regulated-businesses-get-ready-reforms?utm_source=openai))
3. **Review arrangements for foreign client transactions.** Foreign resident CGT laws have been improved—double-check withholding obligations and whether any exemptions or concessions apply, like renewable energy investments. ([ministers.treasury.gov.au](https://ministers.treasury.gov.au/ministers/andrew-leigh-2025/media-releases/stronger-penalties-tax-misconduct?utm_source=openai))
4. **Ensure tax advisory practices meet the Code of Professional Conduct.** If you're a tax agent: maintain registration, keep current with law changes, avoid misleading advice, and understand that misconduct now carries heavier penalties. ([ministers.treasury.gov.au](https://ministers.treasury.gov.au/ministers/andrew-leigh-2025/media-releases/stronger-penalties-tax-misconduct?utm_source=openai))
## Example Case: Law Firm Entering AML Regime
- **Firm Y**, a conveyancing practice, begins offering property-related services on 1 June 2026. Under the expanded law effective 1 July, it must enrol with AUSTRAC by 29 July, designate an AML compliance officer, train staff, and have systems ready to monitor property transactions for suspicious behaviour. Failure to enrol or comply risks regulatory sanctions, fines, or loss of license. ([austrac.gov.au](https://www.austrac.gov.au/news-and-media/news/anti-money-laundering-and-counter-terrorism-laws-cover-thousands-more-businesses?utm_source=openai))
## Best Practices for Meeting the New Compliance Thresholds
- Regularly review and update risk assessments, especially those connected to property, trusts, and foreign clients.
- Engage with AUSTRAC and Treasury guidance materials and workshops tailored to professional sectors.
- Maintain documentation of training, reporting, policies, and proof of registration or licensure.
- Establish escalation paths internally in case of suspected misconduct or exposure to criminal risk.
Compliance is no longer about merely ticking boxes—it’s about embedding accountability in your practice.