On 31 August 2026, AUSTRAC updated its regulatory guidance on the real estate designated services set out in table 5 of section 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
The updated regulatory guidance clarifies the types of retirement village arrangements that AUSTRAC considers are and are not ‘real estate’ for the purposes of the AML/CTF Act and, by extension, the types of retirement village arrangements that AUSTRAC considers are and are not regulated under the AML/CTF Act. In doing so, the updated regulatory guidance sheds some much needed light on a question that has been the source of some uncertainty and the subject of much discussion within the industry over the past two months, namely: Are licences to occupy ‘real estate’ for the purposes of the AML/CTF Act?
AUSTRAC now provides as follows:
“Real estate, as defined by the Act, doesn’t include arrangements that only give a person limited contractual permission to occupy premises. For example, a standalone licence to occupy.
To determine if an arrangement is real estate, don’t rely only on the title of a written agreement. Consider all the legal and practical rights the arrangement gives the occupant…
For example, a resident may pay a contribution to a retirement village operator and enter a standalone licence to occupy agreement. Under the agreement:
the resident may live in the unit while the agreement remains in force
the resident’s name isn’t recorded on the property title.
the resident can’t sell, transfer or sublet the unit
the resident doesn’t have rights over the unit from shares in a company or units in a unit trust (this could make the licence a land use entitlement, which is real estate)
the operator retains rights to enter, manage or control the unit in certain circumstances.
On these facts alone, this type of arrangement would not be real estate as defined by the Act. This is because the resident has limited contractual rights to occupy the unit. Services relating only to this licence wouldn’t be real estate designated services.”
You can read the updated regulatory guidance in full here.
We interpret this to mean that AUSTRAC is of the view that:
Licences to occupy granted by retirement village operators to their residents are generally not ‘real estate’ for the purposes of the AML/CTF Act and, therefore, generally not regulated under the AML/CTF Act.
However, the question of whether or not a particular licence to occupy is real estate needs to be assessed in light of all of the legal and practical rights that the resident receives under the licence.
If you are unsure whether or not your licences to occupy are regulated under the AML/CTF Act or would like greater certainty as to whether or not your licenses to occupy are regulated under the AML/CTF Act, please get in touch with Cowell Clarke’s Financial Services & AML/CTF team at Compliance@CowellClarke.com.au.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.