NEWS

AML/CTF REGIME

As of 1 July 2026  law firms are required to be part of Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime.

Under these reforms, legal practitioners will be required to carry out client identification and verification procedures when providing certain legal services, referred to as "designated services".  These include conveyancing services, business sales and acquisitions and movement or transfer of funds.

The verification of identity will now require lawyers to collect further information before proceeding, such as proof of identity and address, source of your funds and purpose of the transaction.

Further information about the regime is available on the AUSTRAC website at www.austrac.gov.au. 

FOREIGN RESIDENT CAPITAL GAINS WITHHOLDING (FRCGW) 

When selling any real property, the vendor must supply a FRCGW Clearance Certificate to the buyer before settlement. Otherwise the purchaser must withhold 15% of the purchase price and remit it to the ATO.  The previous threshold on the purchase price requiring this certificate was abolished on 1 January 2025. This certificate proves you are a local resident, exempting the buyer from withholding the 15%  It is an Australian tax mechanism to ensure that foreign residents pay their capital gains tax when selling real estate in Australia. 

FIRST HOME BUYERS ASSISTANCE SCHEME 

The Transfer duty (stamp duty) exemption threshold for new and existing homes purchased by eligible First Home buyers is now at $800,000. There is a concession on duty for homes purchased between $800,000 and $1 million.

Note that the residence requirement has been increased since 1 July 2023. You must move into your home within 12 months of settlement and live in the property for a continuous 12-month period. 

The Government has closed off access to the FIRST HOME BUYER CHOICE (FHBC) on 1 July 2023. First Home buyers who prior to 1 July 2023 opt in or have already opted into FHBC will continue to pay property tax for as long as they own that property and will remain exempt from transfer duty on that purchase. 

HOME BUYER HELPER

The original NSW Shared Equity Home Buyer Helper pilot scheme is now closed to new applicants. However, eligible buyers can now utilize the national Help to Buy Scheme. This program allows eligible Australians to purchase a home with a deposit as low as 2%.  The government contributes up to 40% of the purchase price 

for new properties or up to 30% for established properties.  You do not pay rent on the government's equity share while participating in the scheme. You can make voluntary repayments over time to gradually increase your ownership stake.

The initiative is open to:

• Australian citizens who are over 18
• You must be a first home buyer
• You must earn less than $100K as an individual or $160K if joint applicants or single parents and 
• there is a property price cap depending on where you live ($1,500,000.00 for Sydney)

LAND TAX

As of 1 February 2024, persons who purchase and occupy a property but own less than 25% interest (either solely or combined) in it, will not be entitled to the principal place of residence exemption from the 2025 land tax year onwards. 

CHANGES TO THE  RESIDENTIAL TENANCY LAWS started on 23 March 2020, with amendments to the Residential Tenancies Act 2010 (the Act) and the new Residential Tenancies Regulation 2019 (the new Regulation).

Some key changes are: "Fit for habitation" minimum standards; smoke alarm obligations; mandatory set break-fees for fixed term agreements; new standard form agreement; changes of a "minor nature"; new Landlord Information Statement. 

Video conferencing technology like Skype, WhatsApp, FaceTime, Microsoft Teams and Zoom can now be used in the witnessing of important legal documents like wills, powers of attorney, affidavits and statutory declarations. This was first introduced as a temporary regulation made on 22 April 2020 by the Governor to help reduce face-to-face contact during the COVID19 pandemic 

On 29 November 2021 the operation of Part 2B of the Electronic Transactions Act 2000, was extended indefinitely by the Electronic Transactions Amendment (Remote Witnessing) Act 2021 (NSW).  

A witness must see a person signing the document in real time to confirm the signature is legitimate. These changes will make it easier for people to stay home and reduce physical interactions, while still completing important transactions.