It will soon be harder for money launderers to use their ill-gotten gains to buy homes amid a raft of changes coming into effect with the new financial year.
Real estate agents, lawyers, accountants, conveyancers and sellers of precious metals will have to conduct background checks on buyers as part of anti-money laundering and counter-terror financing laws that kick in from Wednesday.
Shaun Doyle, compliance manager at real estate group Ray White, said for most transactions, the changes will have little impact other than scanning some ID and ticking a box.
But more suspicious transactions, such as homes paid for in cash of dubious origin, would be more likely to be referred to financial crimes agency AUSTRAC, Mr Doyle said.
“For most transactions, the impact will be very, very little, but for anyone who is trying to launder money, the intent is that they are caught,” he told AAP.
Inevitably, it would result in agents, conveyancers and solicitors passing on a slight cost rise from the increased use of external compliance providers to consumers, he said.
AUSTRAC has previously estimated more than $1 billion is being laundered through Australian property but until the laws come into effect, the true extent of the issue is hard to determine.
Real Estate Institute of Australia chief executive Scott Rollason said the real estate industry was ready for the changes, which were a significant step in protecting the property market from financial crime.
The financial crime reforms, referred to as tranche two, are among several new requirements businesses will have to comply with in the new financial year.
Award wages will rise 4.75 per cent, hospitality businesses will need to adopt new country-of-origin labelling for seafood and employers will have to pay workers’ superannuation within a week of payday.
Over time, that will provide a significant boost to super balances thanks to compound interest.
Super Members Council chief executive Misha Schubert said it was a game-changing reform that would help tackle unpaid super.
“Unpaid super is like a silent pay cut costing Australian workers billions each year and leaving some working Australians thousands of dollars worse off in retirement,” she said.
The government was aware of small business concerns about the challenging operating environment, with cost pressures already high due to the Middle East oil shock, federal Employment Minister Amanda Rishworth said.
That’s why the budget included new small business supports, such as loss carry-back provisions that allowed a firm to write off losses from profits in earlier years, which would also kick in on July 1, she said.
“We will always work with small business about how we can support them to do business, and where there is unnecessary red tape, we’ll always work to reduce it,” she told reporters.
“But when we come to a simple proposition, like people should get paid their super in their super account in the same way that they get paid their wages, that’s a pretty simple expectation, and something that workers deserve.”
Workers will also benefit from a $ 5-a-week tax cut included in the 2025 budget and an instant $1000 tax deduction for work-related expenses.
Government-funded paid parental leave will be extended by two weeks to six months, while some government payments will be increased or eligibility thresholds expanded in line with inflation.
Consumers will also be shielded from scams as a new text message register comes into effect.
Supermarket giants Coles and Woolworths will have to comply with new price-gouging regulations.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
