Important Changes to How We Work With You

From 1 July 2026, new laws changed how every accounting practice in Australia works with their clients. It’s not complicated, but it is important, and understanding what’s ahead will help things run smoothly when the time comes.

The Australian Government is expanding its anti-money laundering and counter-terrorism financing laws to cover accountants, lawyers, real estate agents, and other professionals who handle transactions and structures on behalf of their clients. AUSTRAC, the government agency that oversees financial crime prevention, calls these “gatekeeper professions,” and from 1 July 2026, they’ll be regulated in the same way banks have been for years.

What does that mean in plain terms? It means we now have a legal obligation to know exactly who we’re working with before we can help you with certain types of work. And we’ll need your cooperation to do it.

Here are the five things you need to understand.

1. Not Everything Is Affected
Your regular tax return, BAS, bookkeeping, and general business advice aren’t changing. Those services carry on as normal.

But when we help you with what AUSTRAC calls “designated services” including:

  • Establishing or restructuring companies, trusts, or SMSFs,
  • Buying or selling real property or business assets,
  • Managing client money or assets,
  • Acting in roles such as company director or trustee on your behalf,

we’re now required to verify your identity and carry out due diligence checks before any of that work can begin.

The key word is before. Not during. Not after. Before.

2. You’ll Need to Prove Who You Are
When you request a designated service, we’ll need to verify your identity and you may be asked to:

  • Provide identification (e.g. driver’s licence or passport);
  • Confirm personal details such as address and date of birth;
  • Provide information about entities involved (companies, trusts, SMSFs, partnerships);
  • Answer questions about the purpose of the transaction or engagement;
  • In some cases, provide information about the source of funds or whether you hold a prominent public position.

These are standard legal requirements that apply across all firms, not a reflection of any concerns about you.

3. We Can’t Start the Work Until the Checks Are Done
Under the new laws, we’re legally prohibited from providing a designated service until we’ve completed the required identity verification and due diligence. It doesn’t matter how long we’ve known you or how straightforward the work is. If the checks aren’t done, the work can’t start.

4. Existing Clients: What to Expect
If you’ve been a client of our practice before 1 July 2026, you’re considered a “pre-commencement customer.” You won’t need to do anything on day one.

The due diligence process is triggered when you request a new designated service, for example, if you ask us to set up a new trust, restructure a company, or assist with a property transaction. At that point, we’ll need to complete identity checks before the work can proceed.

We may also conduct periodic checks to confirm your details are still current, this is part of our ongoing monitoring obligations under the new rules and is standard practice.

5. Your Privacy Is Protected
Everything we collect under these new rules is used strictly for AML compliance, nothing else. Your information is handled under the Australian Privacy Principles, stored securely, and kept for a minimum of seven years as required by law. It won’t be used for marketing, shared with third parties, or used for any purpose beyond what the legislation requires.

Here’s What We’d Ask You to Do
If you’d like to get ahead of the process, the most useful thing you can do is make sure your photo ID is current and your contact details are up to date. Beyond that, we’ll handle it when the time comes.

In some cases, additional work may be required to meet these regulatory obligations, particularly where information is incomplete, complex or requires verification.  Where this occurs, we’ll discuss with you in advance any fees that may need to be passed on.

A Final Note From Us
You don’t need to take any action at this stage. When a designated service is needed, we’ll guide you through the process step by step. If you have any questions in the meantime, please don’t hesitate to get in touch. We’re here to help.

 


General Advice Warning
The information provided in this article is for general information purposes only and is not intended to and does not constitute formal taxation, financial or accounting advice. McConachie Stedman does not give any guarantee, warranty or make any representation that the information is fit for a particular purpose. As such, you should not make any investment or other financial decision in reliance upon the information set out in this correspondence and should seek professional advice on the financial, legal and taxation implications before making any such decisions.