Crims on notice as money-laundering laws take effect

It will soon become more difficult for money launderers to use their ill-gotten gains to buy homes, amid a raft of changes coming into force with the new financial year.

Estate agents, lawyers, accountants, conveyancers and precious metal dealers will have to run background checks on buyers as part of anti-money laundering and anti-terrorism financing laws that come into force from Wednesday.

Shaun Doyle, head of compliance at property group Ray White, said that for most transactions the changes would have little impact other than scanning some ID and ticking a box.

But Mr Doyle said more suspicious transactions, such as homes paid for in cash of questionable origin, would be more likely to be referred to the financial crimes agency AUSTRAC.

“For most transactions the impact will be very, very minimal, but the goal of anyone trying to launder money is to get caught,” he told AAP.

This will inevitably result in agents, carriers and lawyers passing on a slight cost increase to consumers from the increased use of external compliance providers, he said.

AUSTRAC has previously estimated that more than $1 billion was laundered through Australian properties, but until legislation comes into force it is difficult to determine the true extent of the problem.

Real Estate Institute of Australia president Scott Rollason said the property industry was ready for changes that were an important step in protecting the property market from financial crime.

The so-called second tranche of financial crime reforms are among several new requirements that businesses must comply with in the new financial year.

Award wages will increase by 4.75 per cent, hospitality businesses will be required to adopt the new country of origin label for seafood and employers will have to pay workers’ pensions within a week of payday.

Over time this will provide a significant increase in super balances thanks to compound interest.

Misha Schubert, president of the Super Members Council, said it was a game-changing reform that would help combat unfunded pensions.

“Unfunded superannuation is like a silent pay cut that costs Australian workers billions of dollars every year and leaves some working Australians thousands of dollars worse off in retirement,” he said.

Federal Employment Minister Amanda Rishworth said the government was aware of the concerns of small businesses about the challenging operating environment, where cost pressures were already high due to the oil shock in the Middle East.

That’s why he said the budget includes new small business support, such as loss carryback provisions that allow a company to write off profits from previous years, which will come into effect on July 1.

“We will always work with small businesses on how we can support them to do business, and where there is unnecessary red tape, we will always work to reduce that,” he told reporters.

“But when we get to the simple proposition that people should have their pensions paid into their retirement accounts just as they get their wages, that’s a pretty simple expectation and something workers deserve.”

Workers will also benefit from a $5 weekly tax credit included in the 2025 budget and an immediate $1,000 tax credit for work-related expenses.

Government-funded paid parental leave will be extended from two weeks to six months, while some government payments will be increased or eligibility thresholds will be expanded in line with inflation.

Consumers will also be protected against fraud with the introduction of a new text message registry.

Supermarket giants Coles and Woolworths will have to comply with new price gouging regulations.