Compliance for real estate agents in Australia

From 1 July 2026, real estate agents become AUSTRAC reporting entities. Plus state licensing, trust account audits, ACL marketing, and the Privacy Act 2026 exemption removal. Here's the full picture.

Real estate is one of the most heavily regulated SMB industries in Australia. You operate under state-issued licensing (Property and Stock Agents Act in NSW, Estate Agents Act in Vic, Property Occupations Act in Qld), with trust accounts subject to annual statutory audit, sale and lease marketing governed by ACL and state fair trading regimes, and — from 1 July 2026 — full AML/CTF Tranche 2 capture by AUSTRAC.

The compliance load is broader than most agents realise. Add Privacy Act 2026 (10 December 2026 commencement removing the small-business exemption), the Anti-Discrimination Acts, WHS for office and inspection-day operations, Modern Slavery if you're part of a >$100M group, and the ATO's STP Phase 2 + Payday Super for your team.

Below is the practical compliance picture, ordered by what you need to do first.

1. The licence (state-issued)

Every selling agent, buyer's agent, and principal must hold a current state-issued licence — issued by NSW Fair Trading, Consumer Affairs Victoria, Office of Fair Trading Queensland, and equivalents in WA, SA, Tas, NT, ACT. Annual renewal + continuing professional development (CPD) typically required. Operating without a licence is a criminal offence in every state.

2. Trust account audits

Holders of statutory trust accounts must lodge an annual audited trust account report with the relevant Fair Trading regulator. Auditor must be approved (registered company auditor or holder of a public practice certificate). Misappropriation of trust funds is criminal; even bookkeeping errors trigger regulator scrutiny.

3. AML/CTF Tranche 2 — from 1 July 2026

Selling agents, buyer's agents and developers providing 'designated services' are captured by Tranche 2 from 1 July 2026. You need: AUSTRAC enrolment (within 28 days of first providing a designated service after 1 July 2026), a written AML/CTF program (Part A risk assessment + Part B CDD systems), customer due diligence on every client + their beneficial owners, suspicious matter reporting, an AML/CTF Compliance Officer, staff training, and an independent program review. Residential property management alone is not captured — only sales activity triggers capture.

4. ACL marketing + UCT

Misleading or deceptive marketing of properties (over-stating square metres, hiding flood/heritage status, fake interest in a property) attracts ACCC and state Fair Trading enforcement under the Australian Consumer Law. Standard form management contracts must comply with the Unfair Contract Terms regime (each unfair term is a separate contravention attracting penalties up to $50M / 30% turnover).

5. Privacy Act 2026 (from 10 December)

Most real estate agencies under $3M turnover currently rely on the Privacy Act small business exemption. That ends 10 December 2026. From then, every agency must have a Privacy Policy, collection notices on listing forms, NDB breach response plan, vendor data processing agreements (with REA Group, Domain, RP Data, CRMs, etc.), and access/correction request handling for clients and prospective tenants.

6. Employment + super

Your team is covered by the Real Estate Industry Award. Payday Super starts 1 July 2026 (super within 7 days of each payday); STP Phase 2 reporting; WGEA reporting if 100+ employees nationally. Wage theft is criminal from 1 January 2025.

FAQ

Are property managers captured by Tranche 2?

Not on the basis of rent collection or tenancy management alone. If the same business also sells property or acts as a buyer's agent, those activities trigger capture.

Do I need to be a CDD expert?

Not personally — but your AML/CTF Compliance Officer needs to be. They cannot be outsourced; must be an employee. Larger franchises typically appoint an internal compliance officer; sole-principal agencies have the principal play the role.

What's the deadline for AUSTRAC enrolment?

Within 28 days of first providing a designated service after 1 July 2026. Practical deadline: 29 July 2026 if you provide services from day one. Enrolment opens 31 March 2026.