Common Tranche 2 myths, debunked

"My agency is too small to be in scope." False. The real estate designated service has no size threshold. It is brokering the sale, purchase or transfer of real estate "in the course of carrying on a business" (s 6, table 5, item 1 of the AML/CTF Act 2006 (Cth)). AUSTRAC's guidance is that even providing a designated service occasionally may count as carrying on a business. Size matters to what your programme looks like, not to whether you need one. Your risk assessment and policies must be appropriate to the nature, size and complexity of your business (ss 26C(2), 26F(1)(c)).

"The buyer's lawyer handles all this — I don't need to worry." False. You have your own CDD obligations for your own customers, and both the seller and the buyer are your customers. You can rely on a lawyer's or conveyancer's identification work, but only through one of three routes:

• a written arrangement under s 37A;
• case-by-case reliance under s 38, which needs no written agreement but does need the Rule 6-31 conditions met and your reasons documented;
• a participating arrangement under Rule 6-33.

Where the conditions are met, s 37A and s 38 treat you as having collected and verified the KYC information, but not for record-keeping. Your own risk rating, the nature and purpose of the deal, enhanced CDD and reporting still sit with you. See Can I rely on the solicitor's KYC instead of doing my own?.

"If I don't take cash, I'm out of scope." False. The $10,000 physical-currency threshold decides when you must lodge a threshold transaction report (ss 5, 43). It does not decide whether you are a reporting entity. You are in scope because you broker the sale, purchase or transfer of real estate, however the money moves.

"We can use a generic AML template." Only as a starting point. The Act requires your risk assessment and policies to be appropriate to your business (ss 26C(2), 26F(1)(c)). AUSTRAC publishes a free real estate program starter kit. AUSTRAC says it is designed for small agencies with particular characteristics, such as 15 or fewer staff and mostly individual Australian customers. If your business does not fit, you cannot rely on the kit alone. Be wary of any template that uses a "Part A / Part B" structure. That structure does not appear in the current Act or Rules.

"This only kicks in for properties over $X." False. The real estate designated service has no transaction-value threshold. A first-home purchase carries the same CDD, programme and reporting obligations as a large commercial sale. The risk may differ, and your programme should reflect that.

"If I'm a property manager, this doesn't apply." True for the property management itself. Managing tenancies is not brokering a sale, purchase or transfer. A lease of 30 years or less is not "real estate" (s 5). Handling rental income and expenses through a trust account is carved out (s 6(5C)(f); Class Exemptions Rules s 2.1). But if the same entity also brokers sales, it is a reporting entity for that work. A lease longer than 30 years is real estate, so brokering one may be in scope. See Does property management need to comply with AUSTRAC?.

"We'll deal with it later." False. The obligations have applied since 1 July 2026, and each one has its own deadline:

• Enrol within 28 days after you start providing a designated service (s 51B). For agencies already operating on 1 July 2026, that was 29 July 2026.
• Document your programme before you first provide a designated service (s 26F(8); Rule 5-15(1)).
• Designate a compliance officer within 28 days (s 26K), although AUSTRAC said agencies should already have one in place on 1 July 2026.

A late programme cannot cover the transactions already done without it.

"The franchisor's programme covers me." Not on its own. A franchisor that does not broker sales is not a reporting entity. Each franchisee entity that brokers is, and carries its own enrolment and obligations. A franchise network can form an elective reporting group (s 10A(1)(b)). The lead entity, which could be the franchisor, then becomes a reporting entity (s 5), and members must also follow the lead entity's policies. The franchisee is still liable for its own compliance. See Who is the "reporting entity" — me, my agency, or my franchise?.

What to do next. Run this list past your principal and senior agents. Note which assumptions your agency has been working on, and fix them now.