Why is Australia making this change now?
Currently, Australia is one of only a handful of countries in the world whose AML rules do not regulate the services and transactions provided by the above entities. Australia’s next evaluation by the Financial Action Task Force (the international organisation tasked with combatting money laundering and terrorist financing) is due later this year. Without these changes in place, Australia risks being “grey listed” which will impact global perceptions of the integrity of our financial systems.
As an SMSF trustee, will I be subject to the new AML rules?
Not directly – the new AML rules apply only to professionals. But, from 1 July 2026, the services provided to you may change or you may be asked for more information than you are used to. This is simply so the professionals covered by the new rules can meet their responsibilities to AUSTRAC (the Australian Transaction Reports and Analysis Centre – the regulator of our anti-money laundering and counter-terrorism financing rules).
Which services will be impacted?
From 1 July 2026, professionals will have new AML obligations when providing certain services. In an SMSF context, these services would include Heffron assisting you to:
- establish an SMSF;
- establish a company to act as the trustee of your SMSF;
- add or remove an individual trustee of your SMSF;
- add or remove a director of the company which is the trustee of your SMSF; or
- change the shareholders of the company which is the trustee of your SMSF.
It would also include Heffron acting as the registered office address of your trustee company or using our “mailbox” for receiving correspondence on your fund investments.
But the changes are not limited to SMSFs or Heffron. For example, if you setup a new family trust or a company to run your business, or you purchase property (or even a gemstone) in your own name, you’ll likely see changes from the professionals you use for those services.
Importantly though, the changes don’t impact the day to day administration or accounting work for your SMSF.
What extra information am I likely to be asked for?
From 1 July 2026, professionals must verify the identity of clients before providing these services. For SMSFs, this would include:
- before beginning the work to establish an SMSF – Heffron verifying the identity of the proposed individual trustees, or directors and shareholders of a corporate trustee
- before beginning the work to change trustees, directors or shareholders – Heffron verifying the identity of those people
This is similar to the identity checks banks and financial advisers do now. The AML rules are simply expanding to cover a greater range of services.
If you setup up your SMSF in the last couple of years, you might be thinking “this isn’t new – my identity was checked when my fund was setup”. That’s true but it was actually because of a completely different set of rules. If Heffron looks after the administration of your SMSF (ie we are providing a tax agent service to you), we would have verified your identity when your fund was established, when you brought an existing SMSF across to Heffron or the trustee of your fund changed. That’s because the ATO and the Tax Practitioner’s Board also have identity requirements – this time about making sure your identity is protected to reduce the risk of tax fraud.
Is identity verification the only change happening on 1 July 2026?
No, identity verification is simply one part of a new Customer Due Diligence process which professionals will need to undertake./p>
For example, you may be asked for more information to help us understand:
- the transaction you are wanting to undertake, and
- the source of funds for the transaction.>
We’ll also check if you are a politically exposed person or PEP. PEPs are individuals entrusted with significant public responsibilities and powers. Because they could be a target for bribery or corruption, more checking and monitoring may be needed.
If you’re asked questions, it isn’t because you’re suspected of any wrongdoing – it’s purely part of professionals meeting their new AML obligations.
Any personal information collected by Heffron as part of our new AML requirements will of course be kept secure and in line with our privacy policy.
Will these changes delay setting up or changing my SMSF?
Yes, they will. You may notice more questions upfront and our identity checks will happen earlier in the process than they do now. But these checks shouldn’t delay the process by more than a few days in most situations. It really depends on how quickly you respond when you are asked to confirm your identity etc.
Do these changes impact what my SMSF can invest in or how it operates?
No, there are no changes to what SMSFs are allowed to invest in or how they invest. There are also no changes to your SMSF audit, tax return or reporting requirements. They’ll continue as before.
Key takeaways
- From 1 July 2026, Australia’s AML rules will be expanded to capture more professional services.
- You may be asked for more identity and background information before certain services are provided.
- Extra checks may add a small amount of time upfront, but being asked questions doesn’t mean you’ve done anything wrong.
This article is for general information only. It does not constitute financial product advice and has been prepared without taking into account any individual's personal objectives, situation or needs. It is not intended to be a complete summary of the issues and should not be relied upon without seeking advice specific to your circumstances.
