If you think of the AML compliance obligations like a tariff imposed by a government, the analogy becomes clear. When President Trump introduced sweeping tariffs on imported goods, it wasn’t because US businesses wanted to charge more - it was a government mandate. Those tariffs increased the cost of doing business, and companies had no choice but to pass those costs onto consumers. So, in some cases, they included it as an additional line item. You should too. You are not doing this for fun. And your clients cannot buy or sell without complying with the law. It is their compliance cost to bear, not yours.
Australia’s upcoming AML/CTF regime for conveyancers presents the same issues.
The new rules commencing from July 2026, are not optional and they are not just a tick and flick. Conveyancers and Agents will be required to:
Register with AUSTRAC as reporting entities
Develop and maintain an AML/CTF compliance program
Understand the risks and indicators of suspicious activity
Conduct customer due diligence and verify client identities
Monitor transactions and report suspicious activity to AUSTRAC
Maintain detailed records and undergo regular training
All of this adds significant compliance costs and administrative work to every property transaction. The government’s own modelling estimates more than $11 billion in new compliance costs for lawyers, conveyancers, and real estate agents over the next decade. That’s an $11 billion tariff on real estate transfers.
For small and regional firms-already operating on tight margins these are not costs that can simply be absorbed.
Why passing on the cost is necessary
Even if you use an AML provider, you need to apply your own mental rigour to the outcome and you retain the risk. Like when you file a tax return. It will be all your problem, even if you convinced your accountant that $11,000 earrings were hearing protection equipment for your employment. On review, you are in the docks.
- It’s not for extra profit: The AML compliance fee covers the real, direct costs of mandatory checks, recordkeeping, and compliance audits.
- It’s imposed by government: Like a tariff, these costs are a direct result of new laws, not a business decision or market-driven price rise.
- It reflects higher risk: Conveyancers are now recognised as “gatekeepers” for Australia’s financial system, with significant new legal responsibilities and penalties for mistakes.
The bottom line
Conveyancers should not absorb these costs into existing fees - there is simply no room to move down on price without risking the sustainability of your practice. Don’t let high-volume firms undercut the market by absorbing compliance costs; the risk profile and complexity of conveyancing work is about to increase substantially, and your pricing should reflect that reality.
Government-imposed tariffs and compliance regimes both increase the cost and risk of doing business. As Australia brings in new AML rules for property professionals, conveyancers should plan to increase their fees to ensure they can continue to provide safe, compliant, and professional service.
