The Legal Light Justin Stack Crackdown coming on money laundering via property For decades real estate agents have told tales of unsavoury types turning up with suitcases full of cash, saying they want to buy prime real estate along the coast. Buying Australian property has long been a major method for organised crime gangs, drug dealers and corrupt foreign officials to launder their millions. Financial crimes agency AUSTRAC estimates that in 2020 alone, criminals linked to China laundered $1 billion through Australian real estate. Property accounts for more than two thirds of the assets Australian Federal Police seize from organised crime each year, totalling more than $354 million in the past two years. In 2023 the AFP busted a Chinese-Australian laundering operation linked to Korean and Middle Eastern gangs that had a $10 billion prime property portfolio. According to investigators, organised crime money has pushed up house prices in Australia, mostly at the top end of the market. Australia sits at the very bottom of the world in a ranking by anti-corruption group Transparency International for money laundering regulations over property purchases. Australia is one of the last countries in the world where so-called "gatekeeper professions" such as real estate agents, accountants, jewellers and lawyers are not yet covered by important anti-money laundering laws. Unlike banks and casinos, they do not have to do due diligence checks on customers or report suspicious transactions. The Albanese government has announced it will close that loophole and enact legislation in July 2026 to crack down on money laundering through property, AUSTRAC will get $166 million to help educate professions covered by the "Tranche 2" laws, under which real estate agents and others must conduct due diligence and report suspicious transactions to authorities. Experienced business lawyer Geoff Baldwin at Stacks Law Firm welcomed the move to close legal loopholes that allowed money launderers to buy Australian property. "For too long, property sellers have been able to turn a blind eye when someone turns up with swags of cash and they just hand over the keys," Mr Baldwin said. "There was no law saying they had to report it as suspicious. Of course, organised crime buying property effectively hides the source of the funds, so that sales are frequently above true market value. The result is that it also pushes up home price for the ordinary home buyer. "The new regulatory requirement could increase costs or create the need to outsource client checks. Checks can be difficult, with the real buyer often hidden behind myriad foreign trusts, dummy directors and shell companies." Since 1 April 2025, foreign nationals need approval from the Australian Tax Office before buying residential land, regardless of value, and can't buy existing dwellings. The aim was to assist Australian home buyers, but foreigners can buy developments that add to the housing stock. STACKS LAW FIRM Madaline Shepherd Licensed Conveyancer 02 6592 6592 taree.stacklaw.com.au Partners in life The Legal Light Justin Stack Crackdown coming on money laundering via property For decades real estate agents have told tales of unsavoury types turning up with suitcases full of cash , saying they want to buy prime real estate along the coast . Buying Australian property has long been a major method for organised crime gangs , drug dealers and corrupt foreign officials to launder their millions . Financial crimes agency AUSTRAC estimates that in 2020 alone , criminals linked to China laundered $ 1 billion through Australian real estate . Property accounts for more than two thirds of the assets Australian Federal Police seize from organised crime each year , totalling more than $ 354 million in the past two years . In 2023 the AFP busted a Chinese - Australian laundering operation linked to Korean and Middle Eastern gangs that had a $ 10 billion prime property portfolio . According to investigators , organised crime money has pushed up house prices in Australia , mostly at the top end of the market . Australia sits at the very bottom of the world in a ranking by anti - corruption group Transparency International for money laundering regulations over property purchases . Australia is one of the last countries in the world where so - called " gatekeeper professions " such as real estate agents , accountants , jewellers and lawyers are not yet covered by important anti - money laundering laws . Unlike banks and casinos , they do not have to do due diligence checks on customers or report suspicious transactions . The Albanese government has announced it will close that loophole and enact legislation in July 2026 to crack down on money laundering through property , AUSTRAC will get $ 166 million to help educate professions covered by the " Tranche 2 " laws , under which real estate agents and others must conduct due diligence and report suspicious transactions to authorities . Experienced business lawyer Geoff Baldwin at Stacks Law Firm welcomed the move to close legal loopholes that allowed money launderers to buy Australian property . " For too long , property sellers have been able to turn a blind eye when someone turns up with swags of cash and they just hand over the keys , " Mr Baldwin said . " There was no law saying they had to report it as suspicious . Of course , organised crime buying property effectively hides the source of the funds , so that sales are frequently above true market value . The result is that it also pushes up home price for the ordinary home buyer . " The new regulatory requirement could increase costs or create the need to outsource client checks . Checks can be difficult , with the real buyer often hidden behind myriad foreign trusts , dummy directors and shell companies . " Since 1 April 2025 , foreign nationals need approval from the Australian Tax Office before buying residential land , regardless of value , and can't buy existing dwellings . The aim was to assist Australian home buyers , but foreigners can buy developments that add to the housing stock . STACKS LAW FIRM Madaline Shepherd Licensed Conveyancer 02 6592 6592 taree.stacklaw.com.au Partners in life