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Sumit Arora

Full-Stack Architect

Brisbane, Australia
January 15, 2026
12 min readRegulatory Guide

2026: The Year Australian Business Compliance Changes Forever

Two major regulatory reforms hit Australian businesses in 2026. If you're a lawyer, accountant, real estate agent, or involved in M&A — this affects you directly.

Key Dates You Can't Miss

1 January 2026
ACCC Mandatory Merger Control begins
Penalties up to $50 million for non-compliance
1 July 2026
AUSTRAC Tranche 2 AML/CTF obligations begin
~90,000 new reporting entities captured

What's Happening?

Australia is undergoing two of its most significant regulatory overhauls in decades. Both reforms share a common theme: closing gaps that criminals and anti-competitive behaviour have exploited for years.

1

AUSTRAC Tranche 2

Anti-Money Laundering & Counter-Terrorism Financing

Since 2006, banks and financial institutions have been required to verify customer identity, monitor transactions, and report suspicious activity. From July 2026, these same obligations extend to "gatekeeper professions."

Who's Affected?

~27K
Lawyers & Conveyancers
~40K
Accountants
~15K
Real Estate Agents
~5K
Precious Metal Dealers

Trust and Company Service Providers also included. Source: AUSTRAC Reform Guidance

The Six Core Obligations

1
Enrol with AUSTRAC
Register before providing designated services. Enrolment opens 31 March 2026.
2
Develop an AML/CTF Program
Written document covering risk assessment, policies, procedures, and governance.
3
Customer Due Diligence (CDD)
Identify and verify customers before providing services. Know who you're dealing with.
4
Ongoing Monitoring
Monitor transactions and update customer information over time.
5
Reporting
File Suspicious Matter Reports (SMRs), Threshold Transaction Reports (TTRs), and other reports to AUSTRAC.
6
Record Keeping
Retain records for 7 years. Evidence of due diligence and compliance.

Reporting Timeframes

Terrorism-related
24 hours
Report immediately
Other suspicious activity
3 business days
From forming suspicion
⚠️ Tipping Off is a Criminal Offence
Under Section 123 of the AML/CTF Act, you must not tell the customer (or anyone else) that you've filed an SMR or that they're under investigation.
2

Mandatory Merger Control

ACCC Notification Requirements

Australia has operated a voluntary merger notification system for decades. From 1 January 2026, qualifying acquisitions must be notified to the ACCC and approved before completion. Failure to notify is a criminal offence.

Notification Thresholds

Combined Australian Turnover
> $200 million combined, AND target > $50 million
Transaction Value
> $250 million (even if target has minimal Australian turnover)
Serial Acquisitions
Multiple small deals that cumulatively meet thresholds

The Notification Process

1
Determine if Thresholds Met
Review transaction value, combined turnover, and industry-specific tests.
2
Prepare Notification
Compile documentation including deal terms, market analysis, and integration plans.
3
File with ACCC
Submit notification before deal completion. Filing fees apply.
4
Await Review
Phase 1: 30 business days. Phase 2 (if needed): additional 90 days.
5
Receive Determination
Approval, conditional approval, or prohibition.
6
Complete Transaction
Only after approval. Gun-jumping is a criminal offence.
Penalties for Non-Compliance
$50M
Maximum corporate penalty
Criminal
Gun-jumping is a criminal offence

What This Means for Your Business

For Professional Services

Build compliance infrastructure now. AML/CTF programs take 6-12 months to implement properly.

For M&A Advisors

Factor ACCC review into deal timelines. Add 4-6 months for complex transactions.

For All Businesses

Start planning now. Training, systems, and processes need to be ready before day one.

Need Compliance Software?

We build practical compliance tools for Australian businesses — KYC workflows, AML programs, transaction monitoring, and reporting systems.

Let's Talk

Official References

This article is for general information only and does not constitute legal advice. Please consult with qualified legal and compliance professionals for advice specific to your situation.