Anti-Money Laundering Legislation

From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing rules (AML/CTF) are getting a major upgrade. AUSTRAC (the regulator) is expanding the net to include more industries, including accountants, under what’s commonly called “Tranche 2” reforms.

Anti-Money Laundering Legislation

Here’s the practical, no-nonsense summary of what’s happening, why it’s happening, and what it means for you.

What’s happening?

Australia is extending AML/CTF rules to more professions that can be used (sometimes without knowing it) to move or hide dirty money.

From 1 July 2026, AML/CTF obligations will apply to more “service providers,” including:

• Accountants and bookkeepers (certain services)

• Lawyers

• Real estate professionals

• Dealers in precious metals / high-value goods

These newly captured industries will need to comply with formal AML/CTF requirements similar to those already in place for banks.

Why is it happening?

In plain terms, Australia is tightening the system to reduce financial crime.

Construction and property-related work often involves:

• Large payments

• Subcontractor chains

• Multiple entities (trusts/companies/joint ventures)

• Cross-border suppliers or labour

• Big asset purchases (plant, property, high-value materials)

That mix can attract the wrong kind of attention, and regulators want fewer gaps through which money laundering can slip.

This isn’t about making life harder for honest businesses; it’s about making it harder for criminals to hide in normal transactions.

What does it mean for you (as a construction business client)?

1) You’ll likely notice more ID and “who owns what” questions

Because accountants (and other advisors) are being brought into the AML/CTF regime, you should expect more checks when you:

• onboard as a new client

• set up a new company/trust

• restructure ownership

• buy/sell a business

• deal with higher-risk transactions or unusual payment patterns

This is called Customer Due Diligence (CDD), basically identity checks plus understanding the real decision-makers behind a business (beneficial owners).

Practical examples of what we may need from you:

• Driver’s licence/passport (and sometimes secondary ID)

• Company/trust documents

• Details of directors, trustees, shareholders, and beneficiaries

• Basic explanation of the nature of your work and typical payment flows

2) Payments and transactions may get more scrutiny

If something looks unusual (for example, odd third-party payments, unexplained large cash amounts, unusual overseas flows), firms will be required to consider whether it needs to be reported to AUSTRAC.

This doesn’t mean you’ve “done something wrong”; it means the system requires professionals to monitor and report certain red flags actively.

3) Some businesses may be directly captured too (depending on what you do)

Most construction businesses won’t be “Tranche 2” just because they build. Still, if your business also provides certain services (for example, you operate as a property intermediary, deal in high-value goods, or have related entities that fall into the new categories), there may be direct obligations.

If you’re not sure, we can help you determine whether any part of your group is affected by the new rules.

What we’re doing at Ignite (and what we’ll need from you)

We’ll be adjusting our onboarding and ongoing client processes so we stay compliant without creating a paperwork circus.

Next steps

If you’ve got multiple entities (trust, company, SMSF, etc.), be ready to confirm who owns/controls what.

If your business touches property transactions or other high-value dealings, ask us to review whether you’re directly captured.