Australia's proposed beneficial ownership register

What's proposed

The Australian Government has announced a public beneficial-ownership register as policy. Treasury has consulted on the legislative design to establish this register, which aims to identify the natural persons who ultimately own or control Australian companies, and potentially other entity types. The register will be centrally held and will function as a beneficial owner identifier.

Currently, no Bill establishing the register has been enacted. The design remains in consultation, and the legislation is not yet law. This means the register is not operational.

The proposed register intends to provide transparency regarding ownership structures. Key aspects under consideration include:

• Identifying ultimate beneficial owners.

What disclosure exists today

Currently, Australian companies provide some limited beneficial ownership disclosure to the Australian Securities and Investments Commission (ASIC). This occurs through Form 388, which is included in financial reports, and Form 484, which relates to changes in company membership. These forms capture some information about individuals with an interest in the company.

The *Anti-Money Laundering and Counter-Terrorism Financing Act 2006* places obligations on reporting entities to identify beneficial owners – those individuals who own or control at least 25% of a business. The recent AML Tranche 2 reforms expand the scope of reporting entities to include lawyers, accountants, real estate agents, conveyancers, trust and corporate service providers, and precious metals dealers. These entities must comply with these requirements from 1 July 2026.

Beneficial ownership information is also disclosed for tax purposes. The Common Reporting Standard (CRS) requires financial institutions to disclose beneficial ownership details for their customers.

Why a register is on the agenda

The proposal for a beneficial ownership register has gained prominence following recommendations from the Senate Economics References Committee and other inquiries. These bodies have identified a register as a potential measure to combat illegal phoenixing, tax evasion, and sanctions evasion. A central, publicly accessible register is seen as a tool to increase transparency and deter illicit activity.

The move also reflects a broader international trend. Australia’s consideration of a register aligns with evolving anti-money-laundering and counter-terrorism financing (AML/CTF) standards, specifically FATF Recommendation 24. Several jurisdictions, including the UK and the EU, have already implemented similar registers.

A beneficial ownership register would complement existing obligations for reporting entities. Currently, these entities must undertake customer due diligence. A register would provide a single, verifiable source of information for both reporting entities and law enforcement agencies, supporting their efforts to identify and address financial crime.

What to do now

Accountable persons and compliance teams should monitor Treasury consultation outcomes and any draft Bill as design choices regarding access, thresholds, and the information set are still under consideration. This will ensure preparedness for the register’s eventual enactment. Understanding the direction of these consultations will be crucial for adapting internal processes. beneficial owner identifier

Groups with complex ownership structures should review their existing internal beneficial-ownership maps. These are already required for Anti-Money Laundering and Customer Due Diligence (AML CDD) purposes and will likely form the basis of reporting requirements when the register is enacted. A clear and accurate internal record will simplify the transition.

Tranche 2 entities – including those in real estate, law, accountancy, conveyancing, and precious metals dealers – should be aware that AML/CTF beneficial-ownership rules commence 1 July 2026, irrespective of the public register’s status.