There are some changes to Australian law that will affect how accounting practices work with their clients from 1 July 2026. The government is extending anti-money laundering counter-terrorism (AML/CTF or AML) rules to cover accountants – the same type of identity checks your bank already does when you open an account. This applies to every accounting practice in Australia and it’s regulated by AUSTRAC.
WHAT’S ACTUALLY CHANGING?
From 1 July 2026, when accountants help you with certain types of work – like setting up a new company or trust, transferring an entity, providing payroll services or using our address as your registered office address – they are required by law to verify your identity and understand who they are working with before work can start.
These are called “designated services” under the new rules, and specific identity checks (above and beyond our standard process) apply when you ask us to carry out one of these specific types of work.
Your regular tax returns, BAS, bookkeeping, and general advice aren’t affected. It’s only specific transaction and structuring work that triggers these new requirements.
WHAT THIS MEANS FOR YOU IN PRACTICE
If you ask an accounting firm to carry out a designated service after 1 July 2026, some identity checks will need to be completed before work can proceed. This is similar to what happens when you open a bank account or apply for a loan.
Here’s what that might look like:
- Verify your identity – usually electronically or by sighting your original photo ID (driver’s licence or passport)
- Answer a few questions about the service you’re seeking and the purpose of the engagement
- Provide some basic details – your date of birth, residential address, and up-to-date contact information
- If the service involves entities (companies, trusts, SMSFs, partnerships), you’ll be asked for the relevant registration documents.
In some situations, you may be asked about where the funds for a transaction are coming from, or whether you or a close family member hold a senior public position. These are standard questions required by law. It is not a reflection of any concern about you or your business.
If a suspicion is formed that a transaction or activity may be related to money laundering, terrorism financing, or other serious crime, firms are legally required to report it to AUSTRAC. This is called a suspicious matter report. These reports help authorities detect and disrupt serious and organised crime and protect the Australian community. Under the law, disclosing that a suspicious matter report has been made (or is required to be made) is a criminal offence known as “tipping off.” This applies to every accountant in Australia.
WHAT YOU DON’T NEED TO DO RIGHT NOW
You don’t need to do anything at this stage. If you’re not planning to set up any new structures, use payroll services, sell a company or engage us for any of the designated services, you may never need to go through this process at all. When you do need a designated service, you’ll be walked through exactly what’s required at that time. We’ll provide you with a checklist of what to gather, and for most clients, the whole process only takes a few days.
WHAT KINDS OF WORK ARE AFFECTED?
The identity checks apply when we provide what the legislation calls “designated service.” These include:
- Setting up or restructuring a company, trust, or SMSF
- Transferring or selling a trust or company
- Providing payroll services
- Using our address as your registered office address.
Services like tax returns, BAS preparation, bookkeeping, payroll, and general business advice are not classified as designated services and are not affected by these changes.
YOUR INFORMATION IS SAFE
Any information we collect as part of this process is used only for AML compliance, nothing else. Your information is stored securely, handled under the Australian Privacy Principles, and kept for at least seven years as the law requires. It will not be used for marketing or shared with third parties.
FAQ
We know you might have a few! You can access a range of FAQ about the new services here.
QUESTIONS?
If you have any questions about how these changes might affect you, please don’t hesitate to give us a call on 6144 3370 or drop us an email at office@ultimate-tax.com.au. We’re happy to walk you through it.
We know extra paperwork is nobody’s favourite thing. But these are legal requirements that apply across the board, and we’ll make the process as smooth and painless as possible when the time comes.
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