AML reforms to cost conveyancers and lawyers $11 billion over a decade
Conveyancers, lawyers and real estate agents will have to stump an extra $11 billion over a decade, according to Shadow Government Services Minister Paul Fletcher.

NEW anti-money laundering laws will cost lawyers, conveyancers and real estate agents more than $11 billion over a decade.
That’s the verdict of Government Services Shadow Minister Paul Fletcher, who spoke in Parliament on behalf of the Coalition earlier this month.
The Bradfield MP made the comments at the second reading of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024.
The overall $13.9 billion for additional regulatory costs also impacts accountants and gemstone dealers and has been worked out by then government’s own modelling, he says.
In all, an extra 90,000 businesses – including conveyancers – will have to implement additional Know Your Customer (KYC) rules in changes that have been described as having the biggest impact in more than a decade.
He said: “We’re talking about $13.9 billion in regulatory costs over 10 years. $13.9 billion in new costs. Who pays these costs?
“It’s the accountants who do the tax for cafes and bookshops and for mums and dads who engage someone for help with their financial affairs.
“It’s the real estate agents who manage sales and rentals. It’s the country lawyers who run small practices in rural and regional areas around our country. These are the people who will be paying for this bill.
“The odds are, of course, that the additional costs will be passed on to Australian families.”
Conveyancers, whose profit margins are already stretched to the limit, all know they are at the heart of the additional costs’ equation.
The so-called Tranche 2 reforms bring those in property with big financial services institutions who had to implement strict KYC rules after a serious of scandals a decade ago.
Australian Conveyancer covered the issue of AML in a Special Report entitled Australia shuts the laundry door earlier this year
The Liberal frontbencher went on: “Let’s break down those 10-year costs by sector.
“If you’re in the financial services sector, it’s an extra $84 million. If you’re in gambling services, it’s an extra $99 million.
“For bullion traders, digital currency exchange providers, remitters and gemstone dealers together, it’s an extra $136 million in total.
“But these are the sectors at the smaller end of the impact scale.
“If you’re a provider of trust and company services, it’s an extra $1.136 billion in costs. If you’re a provider of legal services, it’s an extra $2.883 billion.
“If you’re a provider of accounting services, it’s $3.682 billion. For real estate it’s $5.892 billion. And that’s how we build up to the $13.9 billion over 10 years.
“Let’s put it in context. The costs of this bill are almost 1½ times the cost of the Housing Australia Future Fund, and all of this money would be coming from the pockets of Australian businesses. So there are serious questions to answer here.”