What Changes from 1 July — AUSTRAC and Customer Due Diligence

You may have heard the term “AUSTRAC” in the news lately. From 1 July, it becomes part of how accountants — including us — work with every client. Here’s a simple breakdown of what’s changing and why it matters to you.

1. What is AUSTRAC?

AUSTRAC is the Australian government agency responsible for detecting and preventing money laundering and terrorism financing. Put simply, its job is to keep an eye on how money moves through the financial system and stop illegal funds from being disguised as legitimate transactions. Until now, these obligations mainly applied to banks, casinos, and remittance providers — but that’s changing.

2. From 1 July 2026, accountants are included too

Under the AML/CTF Amendment Act, from 1 July 2026, businesses including lawyers, accountants, real estate agents, conveyancers and trust and company service providers become newly regulated by AUSTRAC. This isn’t something specific to PAG — it’s a legal obligation that applies to every accountants in Australia. Whichever accountant you go to from 1 July onward, you’ll go through the same process.

3. What this means for you — Customer Due Diligence (CDD)

When an accountant provides a “designated service” regulated by AUSTRAC, they’re now legally required to verify certain information about their client before providing that service. A common example is company formation.

When we help set up a new company for you, we’ll need to collect information such as:

• Proof of identity (e.g. passport or driver’s licence)
• Confirmation of your residential address
• Details of the beneficial owner(s) — who ultimately owns or controls the company
• A brief explanation of the business purpose or source of funds
• Whether you’re a politically exposed person (PEP)

This isn’t because we suspect anything — it’s simply a legally mandated process that applies to every client, new or existing. In some cases, we may need to re-confirm your details later (for example, if there’s a change in company ownership or structure).

4. Why your cooperation matters

We need your cooperation with this verification process in order to proceed with the relevant service. If the legally required information can’t be confirmed, no accountant in Australia — including us — will be able to move forward with that service. We know it adds an extra step, but it’s there to protect both you and us from fraud and illegitimate funds.

How PAG Can Help

At PAG, we’ve already updated our internal processes to align with these changes. If you’re planning to set up a company or need a related service, feel free to reach out — we’re happy to walk you through exactly what’s needed in advance.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as legal or tax advice for any specific situation. You must consult with a qualified professional regarding your individual circumstances.

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