Plain-language guide
What is Tranche 2?
Australia's anti-money laundering laws are expanding. If you work in real estate, legal, accounting, or conveyancing services, you'll need to meet new AML/CTF obligations starting July 1, 2026 — and we'll explain what that actually means.
What is Tranche 2 and AML/CTF?
Tranche 2 refers to the expansion of Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act to include additional professions and industries. It brings real estate agents, lawyers, accountants, and other "gatekeeper" professions under AUSTRAC regulation to detect and prevent financial crime.
The legislation passed Parliament on 29 November 2024 and received Royal Assent on 10 December 2024. These professions will become "reporting entities" under AUSTRAC, joining banks, casinos, and other financial institutions already regulated under Tranche 1.
Tranche 2 requires businesses and professionals to verify customer identities, conduct risk assessments, monitor transactions, report suspicious activity to AUSTRAC, and maintain comprehensive compliance records.
Who Needs to Comply with Tranche 2?
Tranche 2 applies to specific professions that act as "gatekeepers" to the financial system. If you work in any of these industries and provide designated services, you'll need to comply:
- Real estate agents (including buyer's agents and property developers)
- Lawyers and legal practitioners
- Accountants and tax agents
- Conveyancers
- Dealers in precious metals and stones
- Virtual asset service providers
- Other service providers offering designated services
If you handle client funds, facilitate large transactions, or provide high-risk financial services, these rules likely apply to you. If you're unsure whether Tranche 2 applies to your business, use AUSTRAC's online eligibility checker or contact us for guidance.
Tranche 2 Timeline & Key Dates
The legislation has passed, and the rules around Tranche 2 AML compliance are being finalised. Here are the critical dates you need to know:
9 days until Tranche 2 compliance is required
1 July 2026
2025
- JunePublic consultation on draft rules
- AugustFinal AML/CTF Rules published
- SeptemberLearn about the changes in detail
- DecemberSector-specific guidance finalized
2026
- JanuaryChoose AML provider or develop internal processes
- March 31Formal AUSTRAC enrolment opens
- April–MayFinish system setup and trial run
- July 1OBLIGATIONS COMMENCECOMPLIANCE DEADLINE
With Instant Compliance, you'll be set up and ready.
- 1 July 2026: Tranche 2 obligations begin (COMPLIANCE DEADLINE)
- 31 March 2026: AUSTRAC enrolment opens
- 29 July 2026: Final deadline to enrol with AUSTRAC
Key Tranche 2 Obligations
What Are the Consequences of Non-Compliance?
Legal consequences
Depending on the nature and severity of the compliance breach, businesses may face:
- Enforceable undertakings
- Infringement notices
- Remedial directions
- Civil penalty orders
- Written notices (external auditor, risk assessment)
- Suspension or cancellation of registration
- Referral for criminal investigation
Financial penalties
- Individuals: Up to $313,000 per breach
- Corporations: Up to $27 million per breach
- Criminal prosecution: Up to 10 years imprisonment for serious offences
Don't leave it to the last minute. Get set up with Instant Compliance.
Get started freeThe True Cost of Tranche 2 Compliance
Without a compliance platform
$23,250 per year
According to the Australian Government's Regulatory Impact Statement, the average ongoing cost per business.
- Administration time and lost productivity
- Multiple software fees (KYC, KYB, screening, monitoring)
- Professional consultation and legal fees
- Staff training and compliance officer appointment
- Policy and AML/CTF program drafting by legal experts ($10,000+)
- Ongoing manual monitoring and reporting
With Instant Compliance
From $99/month + $29/user
- All-in-one platform for your Tranche 2 compliance program
- 55 gold-standard policy templates (worth $10,000+)
- Automated risk assessments
- Integrated KYC/KYB verification
- Transaction monitoring and reporting
- Staff training modules
- Australian support team
- Program implementation in as little as 20 hours
For a typical 5-person team:
Traditional: $23,250/year → Instant Compliance: ~$2,136/year
You save over $21,000 annually
Tranche 2 Compliance Made Simple with Instant Compliance
Instant Compliance is purpose-built for Australian businesses facing Tranche 2. Our platform maps to your AUSTRAC obligations, turning complex compliance into simple workflows.
Built for Tranche 2
- Purpose-designed for Australian regulations
- Industry-specific workflows for real estate, legal, and accounting
- Built around AUSTRAC requirements
Save Time & Money
- 15-minute setup (not 5 months)
- 50% cheaper than competitors
- Automate up to 90% of compliance admin
No Expertise Required
- Designed for busy professionals, not compliance experts
- Step-by-step guidance
- Australian support team
Tranche 2 AML/CTF FAQs
Still have questions? Contact our team
Get Tranche 2 Ready Today
Don't wait until the deadline. Join hundreds of Australian businesses preparing for Tranche 2 with Instant Compliance. Get set up in 20 hours, not 200.
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