Updates to Australian Property Laws: What Homeowners Need to Know in 2026

Changes in real estate law are coming thick and fast in Australia for 2026, and they won’t just impact big-time property developers. Whether you’re a tradie hired to fix up a client’s home or a homeowner planning to sell or rent out a place, you’ll feel them. These changes are not small tweaks; they reshape how money moves, what records you must keep, and how property is bought or rented. The good news? With a little preparation, you can stay ahead.

In this blog, we’ll break down the major updates, explain why they matter for you, and walk you through practical steps you can take now. Let’s understand this in more detail.

Major Updates Coming in 2026

Here’s a quick overview of the Australian property law updates you need to watch for in 2026:

1. AML/CTF obligations for real estate professionals
   

2. Tightening tax rules for holiday homes and rentals
   

3. Foreign-buyer moratorium on established dwellings
   

4. Federal housing budget measures shaping demand and support
   

Each of these is real estate restrictions that affects homeowners, home renovation cost, and property professionals in different but connected ways. Let’s understand these in more detail.

1. New Anti-Money-Laundering Rules for the Property Sector

From 1 July 2026, many property-related professionals, not just real estate agents, will be subject to anti-money-laundering/counter-terrorism financing (AML/CTF) obligations. This means buyer’s agents, developers, conveyancers, and even certain payment processors will have to:

• Verify customer identities.

• Monitor transactions for suspicious activity.

• Keep detailed records of who paid what and when.

• Report red flags to authorities.

These obligations bring more rigor to how money flows in property deals.

Source Link: https://www.austrac.gov.au/about-us/amlctf-reform/reforms-guidance/before-you-start/summary-obligations-reform

1.1 Why Does It Matter for Homeowners?

When hiring tradespeople for major works, expect more questions and documentation, especially if payments are routed through trusts or third parties. Your agent or conveyancer may also ask for proof of where the money is coming from before approving a job or sale. This is all part of the wider homeowner law updates Australia coming into effect.

1.2 What Should You Do?

• Always issue invoices: Make sure your invoices are clear, dated, and itemized. Include a job reference, names, addresses, and payment details.

• Use traceable payments: Try to avoid large cash payments. Use bank transfers or digital payments that are easy to track.

• Store your records: Keep all receipts, photos, contracts, and client IDs organized in folders (digital or physical) for at least five years.

• Talk to a lawyer/accountant: If your business handles client funds, or if you regularly deal with property settlements, seek advice on how these AML/CTF rules apply to you.

2. Stricter Tax Treatment for Holiday Homes and Short-Term Rentals

The tax office is tightening the rules around claiming deductions for interest, rates, and maintenance on holiday homes, especially when they’re not purely rental properties. The key question now is: was your home genuinely available for rent, or did you mostly use it yourself?

The tax authority will closely examine how often you listed the property, how you marketed it, and how much of the year it was booked. If you under-marketed or held it for private use, your claims may be scaled back or denied.

Source Link:
https://www.realestate.com.au/news/new-tax-rules-could-cost-holiday-home-owners-thousands/

2.1 Why Does It Matter?

If homeowners want to claim deductions for their holiday property, they’ll need to prove that it was truly a rental. Without solid evidence, you might lose valuable tax benefits.

2.2 How to Prepare?

• Keep listing records: Save your ads, how often you listed, what nightly price you charged, and which platforms you used.

• Document bookings: Maintain a calendar of stays, including dates, guest names (or booking platform), and how long people stayed.

3. Foreign-Buyer Moratorium on Established Homes

There’s a temporary ban on foreign investors purchasing established dwellings in Australia. That moratorium started in April 2025 and will continue through to the end of March 2027. This move is meant to free up existing homes for Australian buyers rather than overseas investors. 

Source Link: 

https://ministers.treasury.gov.au/ministers/clare-oneil-2024/media-releases/albanese-government-clamping-down-foreign-purchase

3.1 Impact on Demand and Market

• In hotspot regions: Areas that once attracted international investors may now see more local buyers competing. That can drive up both demand and renovation work.

• Effect on selling: Sellers may get more domestic interest and need to manage more buyer applications.

3.2 What to Do?

• If you’re selling, make sure your agent is clear on the buyer eligibility rules and incorporates them in negotiations.

• Familiarize yourself with the buyer checks: Ask clients to confirm whether they are ‘foreign persons’ so you can plan accordingly.

4. Federal Budget Housing Measures That Shape Property Moves

The latest federal budget includes a number of housing-related initiatives that will influence property markets from 2026:

• Shared-equity schemes (“Help to Buy”) allow first-time buyers to access a portion of equity without huge upfront costs.

• Increased support for social and affordable housing.

• Tax settings and incentives may shift cash flows and mortgage affordability for some buyers.

These programs are designed to boost housing supply and help more people get into homes. But they also change who is buying and how they pay.

Source Link:

https://hlb.com.au/media/2025/03/2025-26-Federal-Budget-Report.pdf

4.1 Why Does It Matter?

If homeowners are selling, they may find new segments of buyers (shared-equity or first-time buyers) who are price sensitive but serious.

4.2 Action Steps

• Connect with local agents who are working with shared-equity buyers and offer your services.

• Position your business for cost-effective, high-quality work: small kitchens, bathrooms, and energy-efficient fixes.

• Track buyer trends in your area: if shared-equity programs are active in your state, adjust your marketing accordingly.

How Do These Changes Play Out in Real-Life Scenarios?

Big policy updates can feel confusing until you see how they affect real people. Here are a few everyday situations that show what these rules look like in practice for homeowners.

1. Scenario A: Upgrading Your Holiday Rental

You decide to renovate your coastal holiday home—maybe a fresh kitchen, new decking, or a modern bathroom. The project is big, so you make sure every payment is done properly through invoices and bank transfers.

Under the new AML/CTF-style checks, your bank or service provider may ask where the renovation funds came from. Because you kept clear records, invoices, dated receipts, and before-and-after photos, the process stayed smooth.

Simple record-keeping now saves you big trouble later.

2. Scenario B: Selling Your Holiday Home

You’re putting your beach house on the market. You used it for family breaks but also rented it out part-time. With the new compliance expectations, the buyer’s conveyancer may ask for proof of the property’s rental activity.

Because you’ve kept your records organized, you can easily provide:

• Booking history

• Rental listing screenshots

• Notes on rental income

• Maintenance and renovation invoices

You also made sure every tradie you hired gave you proper invoices—not handwritten notes. This documentation helps speed up due diligence and gives buyers confidence that everything is above board.

3. Scenario C: Choosing Tradies for Your First Home

If you’re a first-home buyer (including those using shared-equity schemes), you’re likely sticking to a strict budget. Good tradies in growing suburbs now tailor their services to people like you.

You’ll notice many highlights:

• “Budget-friendly upgrades”

• “Smart value renovations”

• “Cost-efficient repairs”

They keep clear job records and transparent quotes so you feel secure about spending.
This makes it easier for you to plan upgrades without worrying about hidden costs or compliance issues.

Practical Checklist: What Homeowners Should Do Now?

Here is a clear checklist to help you navigate these 2026 changes:

• Invoices and Payments: Use clear, legal invoices. Prefer bank transfers or traceable payments over cash.

• Client Conversations: Ask clients (especially for large jobs) about their property status (holiday home, sale, resale) so you can prepare for extra checks.

• Tax Planning: Encourage homeowners to run self-audits of their rental use and list their properties properly during high season.

• Legal Advice: Talk to a legal advisor or accountant familiar with AML/CTF compliance and property tax to ensure you follow correctly.

• Time Management: Expect small delays in contracts, payments, or inspections because of the new checks. Build buffer time.

• Eligibility Checks: If you're selling, verify whether your buyers are subject to foreign-buyer restrictions. If you're buying, understand how shared-equity schemes apply to you.

1. Why These Updates Matter for Homeowners?

These house-buying rules and property-selling rules are not just paperwork—they change how property is bought, sold, or rented. For homeowners, especially those who rent out homes, there's a lot more scrutiny on rental history and finances.

At the same time, the budget’s housing supports and shared-equity programs create new buyer segments. This could lead to more work, but the nature of that work may be different. Rather than very high-end or speculative renovations, tradies may find better opportunities in practical, well-priced upgrades. Most importantly, these new property laws Australia push for more transparency and cleaner financial records.

Trusted Tradie Network: Your Partner in Compliance and Quality

Trusted Tradie Network matches you with tradies who are reliable, skilled, and already following good practices, invoicing clearly, keeping photos and records, and working in a way that supports compliance. If you’re a homeowner, being part of such a network makes navigating these changes a lot easier. You reduce risk, save time, and give yourself peace of mind knowing you’re working within the new rules. This makes adapting to real estate rules update simpler, reducing risk and saving time.

Final Thoughts

The new property laws Australia is rolling out in 2026 are serious, but they don’t have to be scary. They shift more responsibility onto property professionals and bring more clarity for tax claims, but they also open up better opportunities for trusted tradies and careful homeowners. By keeping good records, using traceable payments, and having honest conversations with your clients or tradies, you can stay ahead of the curve.

At the end of the day, these changes are about transparency and trust. If you embrace these housing law changes, you stand to protect your financial future and maybe even grow your business.

FAQs

1. What documents should homeowners keep for property sales in Australia?

Keep your invoices, bank transfer proofs, renovation photos, and rental records in one place. These make selling smoother and help you meet the new rules coming in 2026. Good records also boost buyer confidence.

2. How do new rules affect selling a home in my suburb?

You may see more ID checks, stricter buyer screening, and requests for rental proof if it’s a holiday home. Local agents will guide you based on your suburb’s trends. Being organized makes the whole process faster.

3. Do I need special paperwork when hiring tradies for repairs?

Yes, always ask for proper invoices and make payments through the bank. It protects you during tax time and future property sales. Clear paperwork keeps you compliant with new regulations.

4. How will foreign-buyer restrictions affect house prices in my area?

More local buyers may compete for properties that were once popular with overseas buyers. This can increase demand in certain suburbs. Your area’s growth will depend on how strong local interest is.

5. What should I prepare if I rent out my home or use Airbnb?

Save your booking calendar, listing screenshots, and guest history. These support your tax claims and will be checked more closely from 2026. Good documentation also helps during property valuation or sale.