AUSTRALIAN CONVEYANCER, Edition 16

AUSTRALIAN

Conveyancer.

THE PRACTITIONER’S COMPANION

THE YEAR IN REVIEW

A LOOK BACK: WHAT WE’VE LEARNED POWERED BY D EC E M B E R 2 0 2 4

2 • NEWSROOM

New research shows Australians think housing crisis is getting worse

By LEWIS PANTHER

I

ndependent research by Insightfully, commissioned by Master Builders Australia, makes grim reading in the run up to Christmas, with a raft of insights that reinforce that housing will be front and centre of the Federal Election.

The research – which comes just after the RBA kept rates at 4.35 per cent for the 13th month in a row – shows: • Two in three say cost of living is the most important issue for them (up from 45 per cent in May 2023).

• One in four say housing is the most important issue for them (up from 8 per cent in November 2023).

• 90 per cent say it’s difficult to afford to buy or rent property in Australia.

• 70 per cent say the current government has not done enough to address housing issues.

• 85 per cent agree there is a shortage of housing in Australia.

• Seven in 10 say the housing crisis is damaging the quality of life in their community.

• Seven in 10 say the housing crisis has gotten worse over the last 12 months.

• 68 per cent of renters who want to buy a home fear they won’t achieve it within the next five years.

• More than one in three Australians have gone without essentials like food, medicine or education to pay for their rent of mortgage in the last 12 months.

• 39 per cent have struggled to pay their rent or mortgage in the last 12 months.

• 65 per cent say the federal government is most responsible for addressing the housing crisis.

“These are very sombre figures – households and businesses are hurting,” Master Builders Australia chief executive Denita Wawn said.

Denita Wawn, Master Builders Australia CEO.

NEWSROOM Stories that moved the dial “Housing and cost of living must be front and centre this federal election.

“We’ve seen the housing crisis worsen over the last 18 months with more than one in three Australians now going without essentials like food or medicine to pay their rent or mortgage.”

She says that, while many will be decorating their homes this Christmas, a large share will be trying to keep them.

“Eighty-five per cent of voters agree we don’t have enough homes in Australia, and the research shows that a swathe of solutions should be on the table to fix this,” Wawn said.

“The majority of Australians think the

federal government has more to do to solve the housing crisis, and Master Builders agrees.

“Getting more skilled tradies both domestically and from overseas, speeding up planning approvals, simplifying workplace laws, bringing in an industry watchdog to hold unlawful unions to account, and building more critical infrastructure are just some of the policies that have majority community support.

“The building and construction industry is ready to get on with the job after a difficult few years, but we can’t deliver unless governments do their bit to ease cost pressures and reverse declining productivity.

“It’s clear this upcoming federal election, voters will be looking at all parties for real and tangible solutions to the housing crisis and we urge them to work with industry to make this happen.”

A U S T R A L I A N C O N V E YA N C E R • 3

THIS EDITION

Meltdown: homeowners taught about ‘massive’ heat impact NSW Environment Minister Penny Sharpe.

By JACK GRAMENZ

A

n unseen, pervasive natural disaster is expected to have a growing impact in the coming decades, costing billions of dollars each year.

Cooler homes and a greater understanding of extreme heat’s impact on crime are part of a new toolkit to combat the multibillion-dollar cost of rising temperatures.

The Heat Smart City Plan aims to get communities on the same track to mitigate and adapt to heat, which the greenhouse effect is making worse.

The plan’s release in early December came amid warnings this summer will be dominated by aboveaverage temperatures.

NSW Environment Minister Penny Sharpe said extreme heat could kill people as well as disrupt the economy. “There is a massive impact ... there’s no one solution to it,” she told reporters.

The plan makes 40 recommendations, including retrofitting social housing to improve thermal performance and establishing standards for private rentals. Homeowners would also be educated on how to make their homes cooler. Better planning in public spaces – including increased tree canopy cover – is also recommended to make suburbs cooler.

The plan provides a blueprint for safeguarding communities, the economy and the environment from escalating heat impacts, Greater Sydney Heat Taskforce chair Kerry Robinson said.

More than seven out of 10 weather-related hospital visits in the decade to 2022 were because of heat, according to Australian Institute of Health and Welfare data.

“Heat is our most deadly natural hazard,” Robinson said. “Sydney has lacked the co-ordinated arrangements necessary to effectively measure, mitigate and manage the consequences of rising temperatures.”

Heatwaves are estimated to cost about $1.4 billion a year in western Sydney through impacts on business, disruptions to transport and other infrastructure, and blackouts.

That is expected to grow to $6.8 billion by 2070 as climate change drives more frequent and severe heatwaves.

Rising temperatures also raise the risk of violent crime. Domestic violence rates are 50 per cent higher when the temperature is 40 degrees compared to 20 degrees, the plan says.

Several of the initiatives are already underway, according to the state government.

YEAR IN REVIEW While this edition is a review of the last 12 months with a spread on all the Australian Conveyancer front covers on page 8 and 9, we always want to look to the future and offer guidance and education from industry experts.

So we have taken a deeper dive into three of the most important issues facing conveyancers that we raised in our special reports. Over 14 pages, we examine where we are now with: Climate and its impact on property in Coastal erosion’s effect on the lives of the rich and famous, while Conveyancers put on notice delves into the significant impact AML reforms will have, and What now for competition in econveyancing? covers the ongoing debate around interoperability.

Q+A Movera chief executive Nick Hale – whose business is one of the biggest in the UK – spoke to Australian Conveyancer while on a visit to Sydney to learn about the conveyancing landscape.

His views of issues facing conveyancers back home and the positives he’s picked up from the Aussie market are featured in our Q&A.

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4 • Q+A

FACE-TO-FACE

with NICK HALE Chief executive, Movera

MOVING FORWARD With more than 600 people working under the Movera brand umbrella, chief executive Nick Hale is clearly confident describing the firm as the UK’s leading home-moving business.

The seven brands that make up Movera facilitate multiple touchpoints, enabling more than half a million transactions a year across a range of services.

On a visit to Sydney to learn about the conveyancing landscape, he talked to Australian Conveyancer about the issues facing UK conveyancers, and the positives he’s picked up from the Aussie market.

Story: LEWIS PANTHER Photos: TIM PASCOE

A U S T R A L I A N C O N V E YA N C E R • 5

AUSTRALIAN CONVEYANCER: Tell us about Movera and what has helped make it such a success.

NICK HALE: We have a simple philosophy. Everything we do is to improve home moving for our people, partners and clients with experiences that are digital when they can be and personal when they need to be.

Movera is in a great position – 74 per cent of our people believe in the strategy and intend to be here two years from now. It’s quite unusual in the sector to have that level of engagement and commitment. Our net promoter scores are in the high 60s, and we are gaining market share, increased profitability and financial performance quarter on quarter.

AC: What sort of things have you seen that set Australian and UK conveyancing apart?

NH: In the Australian market there is a more consistent and positive customer experience, with lower fallout rates and faster transactions.

Some of that is the adoption of technology. Some of that is the adoption of structural change on expectations around timescales to complete the transaction. Some of it is the maturity of the sector that I would argue is a little bit ahead of where the UK is today.

In the UK, 25 per cent of transactions fail, often due to delays or issues within chains, which don’t exist in Australia. Through the chains that build up, all sorts of things can happen over an extended period.

People can separate, divorce, lose confidence in the eye-washing amounts of money that they’re about to commit in one of the biggest financial commitments of their lives. People also find out things about a property that they can’t resolve or negotiate over.

AC: How do the timescales in the UK compare to Australia, where 42 days is typical?

NH: Our completion time is consistently 130 days, versus a UK average of upwards of 140 days. It puts pressure on the commercial model for conveyancers and it effectively means a proportion of their time overall on their caseload is not positive.

They’ve spent time working on a transaction that doesn’t complete. And that is not to anybody’s benefit.

AC: Conveyancing is a bit of a cottage industry in this country, with lots of small businesses. Is it similar in the UK? NH: The remortgage side of the market has a relatively modest number of pretty significant players, of which we are the largest.

Overall, the sale and purchase market is very fragmented. The top four providers between them have less than 10 per cent market share. Then there’s a tail of 4000 firms that support the remainder of the market, a number that has been steadily reducing in recent years. And there are different levels of professional maturity.

We have invested significantly in artificial intelligence (AI) to improve the experience for our clients, our partners and our people. That AI is not affordable for smaller firms. Nor do they have the skills and the resource to deploy those kinds of things.

So there’s a very big difference between how conveyancers go through a typical transaction.

AC: One of the issues conveyancers talk about here in Australia is a drive to the bottom when it comes to price. There’s a fixed-fee regime that upsets some people. Is that the case in UK? NH: Some people get a little bit worked up about no completion, no fee. I certainly don’t. I think if that is a model that consumers value, then as an industry, our job is to put a commercial proposition that meets consumers’ needs and to build that into our pricing structure.

That’s the reality. I do not recognise the race-to-thebottom point at all.

Our blended average fee is consistently increasing, quarter by quarter. And if you look at our net promoter scores, or our trust pilots and our completion times, they contribute to my opinion that price is not the most sensitive lever.

The cost of conveyancing is a relatively modest part of the overall transaction. It’s one of the biggest lifechanging events beyond birth, death, marriage, and divorce – and when done well, I don’t think price is >> something that is particularly sensitive.

6 • Q+A

CONTINUED FROM PAGE 5

The Movera team.

AC: One of the complaints also is that the conveyancers sit at the bottom end of the value chain in that transaction and some advocate for having a percentage of the sale.

NH: There is a sentiment within the sector that perhaps the work a conveyancer does is not valued as much as it could be. But I also think it is incumbent on businesses like us to engage their own people and to build a culture where recognition doesn’t necessarily come from the outside, it comes from the inside.

Do Movera people feel positive about the fact that we are making home moves better for our clients? Yes. Do our engagement scores show that? Yes. And does our client feedback say that? Yes. On the point around whether we should get a percentage of a transaction, I personally think that clouds a picture. And I think the way I look at it is, we are providing a service that is valued.

We have margin expectations, and we need to earn sufficient money to be able to continue to invest in our

business and people, to continue to evolve home moving and the role that we play in it.

I think that’s about pricing strategy and winning in the market.

If our margins exploded because suddenly we were just taking a percentage of the fees – and if that happened across the sector – I’m not convinced that it would be a positive impact on policy. Whereas if you’re effectively getting paid, if you are earning for the value that you create and your price strategy reflects what you’re able to stand behind, I think that’s the healthiest scenario.

AC: One of the big things here is the compliance burden, especially around anti-money laundering, incoming property disclosure in Queensland. Is compliance an issue in the UK? NH: One issue in the UK is around upfront material information. This is where transactions get extended because some of the basic data is not available when it should be, and that slows it down.

The second is around AI. We’ve invested in an AI

A U S T R A L I A N C O N V E YA N C E R • 7

business which is effectively taking unstructured data on both sides of the transaction, creating structured reports that are ingested into case management systems or shared via email, whichever way either party operates.

That is improving the accuracy and speed, and taking the administrative burden off property lawyers, recognising that there are people like Land Registry, mortgage brokers, conveyancers estate agents who all need better visibility of what is happening on a transaction as it progresses through that value chain.

That’s something that we’ve been working on that will speed transactions and change the experience for many. We view AI as a crucial tool for freeing up property lawyers’ time, allowing them to focus more on providing advice and assisting more clients more efficiently.

AC: Recent stamp duty changes in the UK caused a lot of headaches for conveyancers – and could do again with additional changes being brought in by the new Labour government. What’s happening there?

NH: Yes. three years ago, there were several successive deadlines for stamp-duty incentives.

Without a good handle on the need to balance the work that was needed, it slowed transactions for a bunch of consumers who needed to complete on a certain day.

Effectively, that pushed the resilience and the tolerance of people who were working in the sector beyond what was reasonable. Frankly, many firms couldn’t cope.

The message on stamp duty, I think, is twofold. I passionately believe it should be as easy as possible for people to get on the housing ladder for first time buyers.

Everybody deserves a place to call home and property prices in the UK are expensive and it is difficult for people to make that first step.

In terms of government policy, the thing that we really need is no surprises. A change in stamp duty that is sustained over a period is something that is easier to understand.

When people are incentivised to act within a timeframe, that risks a surge in demand that’s difficult for the industry to cope with. It doesn’t create an ongoing stimulus in the way in which a permanent policy change would.

“Do Movera people feel positive about the fact that we are making home moves better for our clients? Yes. Do our engagement scores show that?

Yes.” Nick Hale

8 • LOOKING BACK

2024 THE YEAR IN REVIEW

FEBRUARY

Fighting The Force of Nature was the front page headline of an edition dedicated to understanding the perils of the growing climate crisis, looking forward over the next three decades. AIC Victorian President Shakila Maclean reflected on 15 years in an industry grappling with cybersecurity threats, tech changes and a volatile property market.

MARCH

Our International Women’s Day “Inspiring” edition profiled five of the thousands of female conveyancers who drive the sector.

Sympli chief executive Philip Joyce was the subject of a Q&A that took a deep dive into interoperability and e-conveyancing.

APRIL

The growing influence of artificial intelligence in conveyancing was the focus of a futurelooking edition as we declared: “It’s time to say hi to AI.” Melissa Barlass was the subject of our in-depth Q&A, delving into the secrets of her success – and how she juggles conveyancing and podcasting.

M AY

JANUARY

Welcome to Tomorrow Land took the views of futurists, investment experts and city planners as they looked through the crystal ball to 2040 to understand what our homes and cities will look like. Dott & Crossitt founder Jared Zak unpacked his plans for the future of the 10-year-old business.

Queensland Property Council executive director Jess Caire offered a positive outlook in the June edition, which tackled the conversation stretched-to-the-limit conveyancers needed to have. Our 14-pagepage special report and cover story dug deeply into the problem of burnout among industry practitioners, with tips on the warning signs as well as self-help.

A U S T R A L I A N C O N V E YA N C E R • 9 AUGUST

As the magazine notched up its first anniversary, we carried out an industry check-up canvassing the expert opinion of leaders from across the country to learn of the prognosis for Australian conveyancers.

AIC Victoria vice-president Linda Cameron explained how she stayed connected to stay on top in the regular monthly Q&A slot.

SEPTEMBER JUNE

The housing crisis fed into the mid-winter edition as our 14-page special report examined a raft of influences that led to Aussies upping inner-city living to move to the sticks. The newly appointed Queensland Law Society chief executive, Matt Dunn, was the focus of a forward-looking Q&A for a sector facing a series of challenges.

In the What on Earth is Under Us edition, we featured the work of spatial mapping experts Lotsearch and their award-winning, decadelong investigation into a potential 260,000 toxic hotspots. Also, in the 36-page magazine, Trent Taylor told us how he was bringing his business coaching and leadership skills to running a fast-growing conveyancing firm in the Q&A.

OCTOBER

Helping our stretched-to-the-limit conveyancing community was the goal of the Better. Faster. Stronger 36-pager in which we turned our attention to self-improvement with inspirational advice and help guides.

Queensland property lawyer Nic Gould revealed how his background helped him bring military precision to his business.

NOVEMBER

J U LY

Real estate’s inviting open door to money launderers featured on the cover and in a 14-page special report in the July issue, along with an update on interoperability and competition reform for e-conveyancing. And industry stalwart Ann Blannin-Ferguson shared her suggestions for a successful career in conveyancing in the Q&A section.

With the housing crisis continuing to dominate the headlines and the government struggling to kickstart its bold plan for 1.2 million houses in five years, How to Crack the Property Market looked at the ways those with ambitions of home ownership could get on the ladder. Angie Ngyuen showed why she’s a real role model to the conveyancing industry in the Q&A.

1 0 • L E V E L P L AY I N G F I E L D ?

What now for competition in econveyancing?

By MELISSA IARIA

A

Caption caption

cloud hangs over the interoperability rollout as competition regulators assess whether the PEXA monopoly is acting anti-competitively.

The Australian Competition and Consumer Commission is inquiring into concerns that PEXA may be engaging in anti-competitive conduct, including by allegedly delaying the reforms that would open up the e-conveyancing platform to competitors.

“I wouldn’t characterise it as an in-depth investigation at this stage, but naturally the concerns warrant further consideration,” ACCC executive general manager of competition, Melinda McDonald, told a Senate committee last month.

“We’re still in the process of gathering relevant information.”

PEXA became wholly privately owned in 2019 when states sold off their interests in the company. Today, the Commonwealth Bank-backed firm has a near monopoly over Australia’s e-conveyancing market.

As yet, rival company Sympli – a joint venture between legal software provider ATI Global Limited and ASX Ltd – cannot operate seamlessly within the existing network platform.

At the November 21 Senate hearing, ACCC chair Gina Cass-Gottlieb criticised the way in which PEXA was privatised, making it a monopoly without the necessary robust regulations in place.

“A set of decisions by state and territory governments put together what had been government sole providers into a privatised monopoly without a sufficiently clear and regulatory framework, and that is one which required interoperability as a condition in effect of the transfer of that ownership,” she said.

“The state and territory registries also have not had

the sort of background in an enforcement skill and craft sense.

“We can see challenges in that framework. It is a key matter where we have engaged with the national competition review and we know this is being considered carefully at the (national competition) taskforce.

Before there is a privatisation that confers a private new monopoly, it is very important to have sufficient regulatory framework.”

Industry regulator ARNECC, which includes registrars from all states and territories, has been leading the reform to deliver full competition in digital settlements

by December 2025.

However, in June, ARNECC paused the reform

A U S T R A L I A N C O N V E YA N C E R • 1 1

“Details of the expanded scope were not clearly defined by ARNECC, nor was there a clear process outlined to achieve interoperability without risking PEXA’s intellectual property.

“Our letter to ARNECC was written in this context, and we engaged across government, industry, and regulators to explore how the program could reconcile with our intellectual property rights.”

The spokeswoman said PEXA was now seeking clarity from regulators about the implications for the currently regulated December 2025 deadline.

“We have consistently raised concerns with the industry regulator ARNECC and governments regarding the unintended consequences of the proposed approach to introducing interoperability,” she said.

“Those concerns, which arise from unintended impacts on users’ business processes, uncertainty of scope, unrealistic timeframes and the additional risks and vulnerabilities that would have been introduced into Australia’s critical digital settlements system, have been voiced by other industry participants, including the major banks.”

PEXA has not yet received any inquiries from the ACCC regarding an investigation but remains committed to collaborating with the ACCC, ARNECC, state registrars, program, saying issues raised by the banks were “beyond the remit of state and territories to resolve”.

The regulator said it would raise the challenges with the federal government and regulators.

It has emerged since that PEXA reportedly wrote a letter to ARNECC threatening legal action if it was forced to share information about its systems that would allow for greater competition, claiming intellectual property.

“When the interoperability framework was initially established, its scope was defined in a way that did not raise concerns about the protection of PEXA’s intellectual property. This scope was expanded at the request of Sympli,” a PEXA spokeswoman told Australian Conveyancer magazine.

“Before there is a privatisation that confers a private new monopoly, it is very important to have sufficient regulatory framework.”

Gina Cass-Gottlieb, ACCC chair (pictured).

Philip Joyce, Sympli chief executive.

1 2 • L E V E L P L AY I N G F I E L D ?

“In my 30 years I’ve not seen a business threaten to sue a regulator that gives them license to operate.”

Philip Joyce

and relevant stakeholders on competition reform, the spokeswoman added.

Meanwhile, conveyancers are demanding more progress on the reforms, saying smaller conveyancing firms are feeling the squeeze under the current monopoly arrangement.

Philip Joyce, the chief executive of rival company Sympli, accuses PEXA of a “blatant abuse of market power”.

“In my 30 years I’ve not seen a business threaten to sue a regulator that gives them their license to operate.

It’s about protecting their position, rather than enabling the reform that will open up the benefits of competition for consumers and small businesses,” he said.

“That really is the call to action to government and other industry figures to really push to get this reform back into execution.”

Joyce said the challenge was devising how to ensure PEXA remained accountable so the banks could gain the information they needed for the reforms.

“The incumbent has used some pretty robust campaigning with the bank, so I think that’s probably the biggest obstacle at the moment.”

Joyce said Sympli is keenly awaiting a Queensland government review of the reforms so the industry has clarity on the next steps.

“We are expecting the review will confirm that the program will recommence still with deliverables by December 2025,” Joyce said.

“We welcome further government intervention to deliver competition. It’s clear it’s not going to happen willingly from the incumbent. Surely every market participant can see this is not a healthy competitive market.”

Meanwhile, Queensland Natural Resources Minister

Dale Last said the state was committed to competition in e-conveyancing and was working with the NSW government on a solution.

“The Crisafulli Government recognises the important role competition plays in guaranteeing value for home buyers and driving down cost of living pressures for Queenslanders,” he said.

“ARNECC receives updates as work progresses, including the outcomes of an interim review undertaken by Titles Queensland with support from the NSW Office of the RegistrarGeneral.”

Last said the timeline for re-starting the implementation of the interoperability program would be a key matter for upcoming discussions with ARNECC. ARNECC’s chair was unavailable for comment. In its latest statement in September, ARNECC said significant issues raised by the banking industry meant the reform faced “significant challenges”.

As such, ARNECC paused the design, build, and test working groups for the interoperability program and stood down its project team while individual states continued to consider the issues.

The regulator said it would continue to monitor developments as NSW and Queensland undertake work in this space, as the two states scheduled to implement interoperability first.

An Australian Productivity Commission report on national competition policy, released on November 29, said more competition in e-conveyancing could significantly reduce the cost of e-conveyancing services, leading to lower prices of $8 to $15 per transaction.

An ACCC spokesman said it remains of the view that ARNECC, as the industry regulator, is best placed to consider, assess and address any concerns about the interoperability reform process.

A U S T R A L I A N C O N V E YA N C E R • 1 3

Conveyancers put on notice AUSTRAC gets tough on AML-CTF tranche 2 compliance

14 • MONEY LAUNDERING

By SAM McKEITH

A

ustralia’s financial crime regulator has sounded a warning to the nation’s conveyancing industry to comply with tough new anti-money laundering laws, saying it will not hesitate to pursue businesses that breach the rules, legislated last month.

The “tranche 2” reforms expand the country’s antimoney laundering and counter-terrorism financing (AML/CTF) system to “high-risk services” provided by real estate professionals such as conveyancers. For the first time, they also catch lawyers, accountants, trust and company service providers, and dealers in precious metals and stones.

Initially proposed 16 years ago, the reforms, to take effect from mid 2026, bring Australia into line with standards adopted around 200 jurisdictions globally.

China, Haiti, Madagascar, and the United States are among a handful of other nations without tranche 2 laws.

Among the key requirements are that conveyancers must understand the source of their client’s wealth and report suspicious financial matters to the regulator.

“We need to find ways forward that enable peole to discharge their obligations without putting them to the point that they can’t afford it.”

Tim McKibbin, Real Estate of NSW chief executive.

REGULATOR EYES ENFORCEMENT

The Australian Transaction Reports and Analysis Centre (AUSTRAC) said it would “collaborate and support reporting entities to meet their obligations in the first instance”, but indicated a tough approach to conveyancers that paid insignificant attention to the new regime.

“AUSTRAC understands that the majority of tranche 2 entities intend to comply and will support them to do so,” an AUSTRAC spokesperson told Australian Conveyancer. “However, AUSTRAC will not hesitate to take enforcement action where reporting entities do not take their compliance obligations seriously.

“Law enforcement has identified some service providers being unwitting facilitators or reckless to the risk of money laundering, which has allowed their skills to be exploited by criminals.”

AUSTRAC was “partnering with industry to ensure that all reporting entities are aware of and understand their obligations and provide sufficient time and practical guidance to implement them,” the spokesperson added.

The agency has said the reforms are needed to curb up to $60.1 billion in harm in Australia from drug trafficking, cybercrime, scams, child exploitation and human trafficking.

Entities to be regulated from 2026, like conveyancers, will need to enrol with AUSTRAC from March 31, 2026, with some other obligations commencing in July (2025).

CRACKDOWN ON REAL ESTATE

Real Estate Institute of NSW chief executive Tim McKibbin said AUSTRAC would have the property market in its sights as soon as the new regime took effect.

“It is going to be a focus – and it should be,” McKibbin said, adding that available research showed significant washing of illicit money through real estate in Australia.

Of the $1.1 billion of criminal assets seized by the Australian Federal Police between 2019 and 2024, more than $720 million involved real estate. More than 370

A U S T R A L I A N C O N V E YA N C E R • 1 5

“We’re trying to build an environment within which we can give the regulator what they want and empower the industry to deliver a compliant outcome at the minimal cost.”

AUSTRAC said it was working to minimise costs to small business from tranche 2, including by developing “AML/CTF Program kits” that will provide “a fully developed AML/CTF Program for a low-complexity small business” such as a conveyancing firm.

“The AML/CTF Program kits are currently being developed in partnership with industry through dedicated working groups,” AUSTRAC’s spokesperson said.

CONVEYANCERS URGED TO PREPARE

residential and commercial properties were seized over the same period.

A lack of regulation has led to Australia’s property sector becoming an easy target for criminals looking to launder money, according to experts.

“We all understand that we have to do this; as a country we have to do it,” McKibbin said.

He said a big issue as enforcement loomed was ensuring conveyancers could comply in a way that imposed a light cost and administrative burden, adding that it would be a tragedy if AML/CTF changes forced businesses to close.

“We need to find ways forward that enable people to discharge their obligations without putting them to the point that they can’t afford it,” he said.

Bright Corporate Law principal David Jacobson said there was no reason for conveyancers to panic about AUSTRAC enforcement given they have more than a year to prepare.

However, he said industry players needed to take sufficient time in 2025 to become compliant.

“What’s going to be new is that they’ll have to register with AUSTRAC if they’re doing real estate conveyancing.

They’ll need a compliance program, and they’ll need policies and procedures to make sure they comply,” Jacobson said.

“It’s an extension of what they already do, but it does require to have some policies and procedures in place to check on clients and to report if they see anything suspicious.”

He suspected AUSTRAC would be looking closely at high-value real estate transactions in notorious hotspots like Queensland’s Gold Coast.

In addition to residential real estate, AUSTRAC could also be looking closely at commercial and rural land deals, as well as purchases from particular countries or tax havens, he said.

“They might be looking at whether they’re paying in cash,” Jacobson added. “If they’re paying $1 million in cash rather than getting 95 per cent bank finance, for instance, there will be all sorts of things that will raise red flags.

“AUSTRAC already knows what it’s looking for, and it’s looking for information about where these criminal proceeds are going to. They’ll be looking for information from conveyancers about that.”

16 • MONEY LAUNDERING

Jacobson added it was likely AUSTRAC would use a transition period once the new laws kicked off to be lenient on non-compliant businesses. But this was unlikely to last long.

“There’ll be a transition period but AUSTRAC will be focusing on whether or not conveyancers have actually registered with them – that’s the first thing – and then they’ll be looking at what reports they’re receiving,” said the Queensland-based lawyer, whose firm specialises in legal advice for financial services providers.

“Seeing as AUSTRAC has already targeted real estate transactions as a potential money laundering haven, I suspect they will be looking at the quality of information they get initially and asking some question before they start to do anything serious.”

LOOK OUT FOR RED FLAGS

Shelley Nave, head of law firm Hunt & Hunt.

With real estate professionals likely key targets for AUSTRAC, Ches Rafferty, the chief executive of digital verification tech company Scantek, urged quick action on tranche 2 compliance.

A key point to remember, he said, was that “the regime has been successfully introduced across many sectors for well over a decade now in Australia and it’s really business as usual for those sectors”.

“So it’s important to realise you do need to get ready to comply but you don’t need to panic that this is going to be an overwhelming obligation on your business,” Rafferty said.

In terms of minimising exposure to AUSTRAC enforcement, the digital security expert advised

conveyancers to have a good look at their client lists for red flags. Such flags included anyone on AML/ CTF checklists as well as those classified as politically exposed persons such as certain foreign government officials, ministers or judges.

On this front, Rafferty said it was about conveyancers embedding the ability in their businesses to ask the right questions about potential illicit activity by high-profile clients.

“Quite legally, now, a real estate agent, for example, could be engaging with someone who’s a known money launderer,” he said. “In the future that’s going to require a lot more due diligence.”

Another consideration when it came to enforcement was that AUSTRAC would likely put a focus on capitalcity markets, especially their premium segments. Strong action in the area was little surprise, Rafferty said, given the large amount of money that criminals had poured into Australia’s real estate market in the past decade.

C O N V E YA N C E R • 1 7

In July, Australian Conveyancer featured real estate’s inviting open door to money launderers in a 14-page special report.

“A lot of money laundering has gone into property in recent years, he said. “Australia has been seen as a soft target because most modern countries passed tranche 2 laws five or 10 years ago.

“Australia is a wealthy nation, good rule of law, high property values, so you can imagine that money launders would see this as a desirable place.”

AUSTRAC RESOURCES QUERIED

Shelley Nave, the head of law firm Hunt & Hunt’s banking and finance team, noted that the number of entities forced to report to AUSTRAC would lift from 20,000 at present to more than 100,000 under tranche 2, putting pressure on agency resources.

In May, the federal government said it would allocate $166.4 million to implement the reforms, which it claimed were critical in supporting law enforcement partners in their fight against transnational, serious and organised crime and protecting Australians.

“There’s going to be a huge amount of information coming and so AUSTRAC really needs to prioritise where it’s looking at in terms of its own internal resourcing; it needs to be ready for this,” Nave said.

Echoing McKibbin, she described real estate as a highrisk area and a target for money launderers, and said it would be a priority for AUSTRAC once the agency could act.

“I think that real estate is a big-ticket issue, and in that regard, we do lag behind global standards,” Nave added.

She was sceptical about enforcement being brought forward in line with a recent senate inquiry recommendation, saying AUSTRAC could only use its auditing powers once the laws took effect in 2026.

She labelled the new regime as a “good thing”, saying “money laundering and terrorism financing is not a victimless crime and so it’s positive that this has come”.

“This is going to be a pain point for the implementation stage but the key is to get education,” Nave said.

1 8 • A U S T R A L I A’ S R E C E D I N G S H O R E L I N E

Coastal erosion’s effect on the lives of the rich and famous

Sydney’s Cronulla and Manly and Melbourne’s Brighton and Port Melbourne – and the celebrities who own properties there – are topping the top 20 list of real estate hotspots at risk of rising sea levels.

A U S T R A L I A N C O N V E YA N C E R • 1 9

A

s coastal erosion makes an impact up and down Australia’s shoreline, some of the country’s most coveted real estate hotspots – and home to the multimillion dollar dream piles of the rich and famous – are facing imminent threat.

Coastal havens like Byron Bay in northern NSW, where Hollywood stars Chris Hemsworth and Matt Damon own palatial digs; Perth’s suburb of Cottesloe, home to mining billionaire Andrew ‘Twiggy’ Forrest; and Portsea in Victoria where transport magnate Lindsay Fox has a family compound; are already being affected by creeping coastal erosion.

“Rising sea levels mean that higher tides are eroding coastlines more rapidly,” says Andy Crawshaw from risk-mapping company Groundsure. “At the same time, more intense storms and shifting weather patterns are increasing the frequency and severity of coastal flooding, which further accelerates erosion.

“This combination of rising sea levels and stronger storms is putting increasing pressure on coastal areas, particularly those with high-density development and significant property investment.”

On Queensland’s Gold Coast, mining billionaire Clive Palmer and his extended family own a number of mega mansions in Paradise Point. The swanky suburb has been identified by CoreLogic’s Coastal Risk Index as being the most financially at risk in the country, with a very high exposure rating affecting 449 dwellings, valued at $1446.9 million. Palmer’s stake in the waterside estate – including a $20 million spaceship-inspired mansion – is estimated at $40 million.

Government agency Geoscience Australia says approximately 39,000 buildings across the country are located within 100 metres of ‘soft’ erodible shorelines, placing them at increased risk due to sea-level rise. “The extent and timeframe of erosion impacts vary across regions, influenced by factors such as local geomorphology, sea-level rise, and human activities,” says the agency.

Climate analyst Thomas Mortlock, an Adjunct Fellow at the Climate Change Research Centre, UNSW, says, “the impact of sea-level rise at the coast is not just a gradual increase in water lapping at the shore. An increase in

tide heights (both higher high tides and higher low tides) increases the probability of coastal flooding and erosion when storms come along”.

“As a rule of thumb,” says Mortlock, “every 10cm of sea-level rise triples the frequency of a given coastal flood. Another rule of thumb, known as the Bruun Rule, suggests a 1cm rise in sea level leads to a 1metre retreat of the coastline.”

According to its Climate Change Risks To Australia’s Coast report, the Department of Climate Change says up to 250,000 properties countrywide have been identified as “potentially exposed to inundation with a sea level rise scenario of 1.1 metres”.

In Old Bar on the NSW Mid-North Coast, the entire beach including some of the million dollar homes along the beachfront could be lost to the rising tides by 2050, according to Groundsure mapping (see diagram).

While, in Victoria, Bayside Brighton – a real estate favourite of AFL legend Chris Judd and his wife Bec – and Port Philip Bay are suburbs also deemed high risk for property loss due to coastal erosion and inundation, with a combined $900 million worth of properties likely affected, according to CoreLogic.

Meanwhile, Groundsure – a global specialist in property-specific environmental and climate data analysis and assessment – has pinpointed its Top 20 areas in NSW already facing “significant risk due to a combination of historically high erosion rates, susceptible coastal geomorphology, and the dense concentration of properties situated in close proximity to the shoreline”.

“Coastal erosion risk is defined by the interplay between the hazard itself (coastal erosion) and the exposure of people and assets to this hazard,” Crawshaw tells Australian Conveyancer magazine. “The close proximity of properties to highly vulnerable coastlines has made these areas in our Top 20 list of cities and towns especially prone to the impacts of coastal erosion.”

Currently sitting at number #1 on Groundsure’s Top 20 is Port Stephens on the NSW mid-north coast, the childhood home of Please Like Me actor Seth Drury and the idyllic location of UK celebrity chef Rick Stein’s celebrated Bannisters Hotel.

2 0 • A U S T R A L I A’ S R E C E D I N G S H O R E L I N E

Receding shoreline, encroaching seas: how things have changed since 1940.

In Sydney’s south, beachside Cronulla – the shire home and birthplace of many famous Aussies including Olympian Ian Thorpe, former Prime Minister Scott Morrison and model Lara Bingle – currently ranks at #2 on the Groundsure at risk list. And, in the company’s modelling for the next 30 years, Cronulla is expected to take the unenviable number one spot in NSW for vulnerability to coastal erosion.

One of Sydney’s ritziest eastern suburbs, the exclusive enclave of Vaucluse, where radio shock jock Kyle Sandilands lives with wife Tegan in their $13million digs, comes in at #7 on the Groundsure at risk list.

While Watson’s Bay also makes the Top 20. Sobering news for Mad Max director George Miller, who owns a string of luxury homes on the beach at Camp Cove, alongside his neighbours, former Westfield chief Steven Lowy and his wife Judy.

In Wamberal – just up the road from our Prime Minister Anthony Albanese’s new $4.3million clifftop mansion in Copacabana on the NSW Central Coast – affected homeowners are facing uncertainty.

“Multimillion-dollar beachfront properties in Wamberal are located on a cliff that is eroding at a rate of over one metre per year. With rising sea levels, stronger storms, and the potential intensification of future El Niño/La Niña events, the stability of these expensive

investments could be at serious risk,” says Crawshaw.

According to the Australian Bureau of Meteorology (BOM), global mean sea levels have increased by over 22cm since 1900, with half of those rises occurring since 1970.

“Sea levels are rising around Australia,” says the BOM, “including more frequent extreme high levels that increase the risk of inundation and damage to coastal infrastructure and communities.”

And, according to coastal climate risk management framework CoastAdapt, the likely estimate of sea-level rise in Australia by 2090 is about 45-82cm higher than 1986-2005 levels.

In Manly, hometown to former NSW Premier Gladys Berejiklian, comedian Kitty Flanagan and world champion surfer Layne Beachley, up to 21 houses and 109 apartments, valued at $462.1 million, could be at risk as sea levels rise, says CoreLogic.

While further along Pittwater Road on Sydney’s northern beaches, Collaroy, the popular residence of retired footballers including FOX sports presenter Matty Johns and wife Trish, could experience erosion affecting $376 million worth of residential property.

Collaroy has already experienced extensive erosion damage during the June 2016 east coast low swells and, as a result, the Northern Beaches Council constructed a 250m rock revestment seawall in front of the beach’s carpark, using around 14,000 tonnes of sandstone to shore up the area. In February (2025) further existing rock sea walls will be replaced by “newly designed structural rock seawalls that will better protect the area from erosion”.

Legal advice from international law firm Norton Rose Fulbright, commissioned by Groundsure, counsels Australian real estate lawyers and conveyancers that they already have a “duty of care to advise and warn their clients about climate risks”.

And Groundsure’s Andy Crawshaw says it’s important homeowners and prospective buyers are aware of risks to their properties so they can best plan for the future.

“Climate change is already considered a Tier 1 risk by lenders on the impact to investment and value,” says the property data expert, “and homeowners in some affected locations are already living with the consequences through higher insurance premiums. So it definitely pays to stay informed.”

A U S T R A L I A N C O N V E YA N C E R • 2 1

Top 10 suburbs at risk by number of buildings exposed to CoreLogic’s Very High and High Coastal Risk Score, ordered by Value at Risk (VaR) Suburb (LGA)

State

No. of dwellings

Apartment dwellings

Property Value at Risk (VaR)

Paradise Point (Gold Coast City)

QLD

406

43

$1,466.9m

Cronulla (Sutherland)

NSW

8

254

$486.4m

Port Melbourne (Port Phillip)

VIC

29

202

$483.8m

Manly (Northern Beaches)

NSW

21

109

$462.1m

Aspendale (Kingston)

VIC

112

136

$455.3m

Runaway Bay (Gold Coast City)

QLD

136

219

$424.1m

Brighton (Bayside)

VIC

50

43

$415.4m

Caloundra (Sunshine Coast Regional)

QLD

20

523

$380.5m

Collaroy (Northern Beaches)

NSW

34

74

$375.9m

Golden Beach (Sunshine Coast Regional)

QLD

100

294

$340.6m

SOURCE: CORELOGIC

2 2 • D ATA D A S H B O A R D

Overseas investment

NSW

Marsden Park

Marsden Park

St Marys Mount Druitt

Residents of which countries invested in the Australian property market for the first time in November 2024.

1. China

3.37%

2. India

2.35% 1.82%

3. New Zealand

1.77%

4. Nepal

1.04%

5. United Kingdom

0.63%

6. South Korea

Price and lifestyle driving buyers The western suburbs continue to lead the charge in property purchases as families look for more affordable options outside Sydney’s high-priced core. Marsden Park remains a top contender, with the 2765 postcode once again claiming the number one spot in November 2024. Following closely are Leppington and Werrington, reflecting the ongoing appeal of western Sydney for home buyers.

Further afield, regional and lifestyle-driven areas are becoming increasingly popular. Cambewarra on the South Coast and Ravensdale on

Hottest suburbs

the Central Coast reflect a growing trend of buyers prioritising lifestyle, space, and affordability over proximity to Sydney’s CBD. Meanwhile, Camden and Campbelltown continue to ride the wave of Sydney’s urban sprawl. These areas offer the best of both worlds, combining semi-rural charm with access to major infrastructure upgrades, making them ideal for growing families. Buyers are spreading out, driven by the lure of affordable living and better lifestyle options.

With western and regional suburbs topping the list, it’s clear that NSW’s property market is evolving well beyond the confines of Sydney Harbour.

7. Vietnam

0.42%

8. Philippines

0.30%

9. Indonesia

0.24%

10. Bangladesh

0.15%

First-home buyer activity How many first-home buyers entered the market in November 2024, compared to same time last year.

70.74

81.17%

2023

2024

29.26%

Percentage of all properties sales recorded by triSearch.

Existing home owner First-home buyer

18.83%

The NSW suburbs where the most property was bought in November 2024.

POSTCODE

SUBURB

POSTCODE

Time on Market

SUBURB

1

2765

Marsden Park

6

2148

Blacktown

2

2179

Leppington

7

2540

Cambewarra

3

2747

Werrington

8

2145

Westmead

4

2155

Penrith

9

2259

Ravensdale

5

2560

Campbelltown

10

2570

Camden

The average time a property spends on market before being sold, compared to the same time last year, including advertising.

74

November 2024 DAYS

November 2023

50

60

70

80

100

102

A U S T R A L I A N C O N V E YA N C E R • 2 3

VICTORIA

QUEENSLAND

Glengarry

Traralgon

Traralgon

Morayfield

Morayfield

Beachmore

Morwell

Deception Bay Broadbeach

Family focus attracts sales

Market heads out of town Victoria’s property market in November 2024 saw strong demand for both regional areas and Melbourne’s outer suburbs.

Leading the charge is Traralgon, Gippsland’s largest city, which claimed the top spot for property purchases. With its affordability and relaxed lifestyle, Traralgon is emblematic of a broader regional shift as priced-out buyers venture beyond Melbourne’s borders.

Similarly, Morwell, another Gippsland hotspot, secured a place

in the top 10, underscoring the region’s growing appeal.

Melbourne CBD took second place, with city living regaining popularity among investors and professionals. Meanwhile, Tarneit and Point Cook continued to lead among outer suburbs, offering a mix of affordability, green spaces, and a commutable distance from the CBD. In the outer suburbs, affordability and family-friendly living continue to drive demand.

Morayfield remained in the top spot for property purchases. This family-friendly suburb, nestled between Brisbane and the Sunshine Coast, continues to attract buyers with its affordability, strong community vibe, and proximity to both city life and coastal escapes.

The neighbouring suburb of Caboolture ranks second, reinforcing the growing appeal of the Moreton Bay region. Buyers are increasingly drawn to this area for

its value-packed homes expanding infrastructure, and lifestyle benefits.

Queensland’s top suburbs illustrate a continued push toward balancing affordability with lifestyle appeal. The Moreton Bay region is the front-runner, catering to families and professionals looking for value and convenience, while the Gold Coast maintains its magnetic draw for those seeking the best of city and beach living.

Hottest suburbs

Hottest suburbs

The Victorian suburbs where the most property was bought in November 2024.

The Queensland suburbs where the most property was bought in November 2024.

POSTCODE

SUBURB

POSTCODE

SUBURB

POSTCODE

SUBURB

POSTCODE

SUBURB

1

3844

Traralgon

6

3064

Mickleham

1

4506

Morayfield

6

4207

2

3000

Melbourne

7

3030

Werribee

2

4510

Caboolture

7

4301 Redbank Plains

3

3029

Tarneit

8

3128

Box Hill

3

4215

Southport

8

4817

Kirwan

4

3030

Point Cook

9

3064

Craigieburn

4

4217 Surfers Paradise

9

4509

North Lakes

5

3806

Berwick

10

3840

Morwell

5

4209

Pimpama

10

4509

Mango Hill

Yarrabilba

Disclaimers - The content provided in this publication is of a general nature and does not take into account future market conditions or your individual circumstances.

You should exercise your own skill and judgment when considering investment decisions and seek professional advice where appropriate. While triSearch uses commercially reasonable efforts to ensure the content contained in this publication is current, triSearch does not warrant the accuracy, currency or completeness of the content and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with this publication.

24 • T H E TO O L B OX

Managing teams remotely The pandemic may have passed, but remote work isn’t going anywhere.

While this flexible way of working offers opportunities, it also presents challenges, particularly for how businesses manage teams across different locations.

These strategies will help you navigate the difficulties and ensure your remote team is productive and successful.

A U S T R A L I A N C O N V E YA N C E R

ESTABLISH CLEAR COMMUNICATION CHANNELS

When managing remote teams, effective communication is crucial.

It encourages strong communication between team members who don’t interact constantly during the workday.

Your communication channels should be easily accessible, functional and take place through work-appropriate means.

This can include email, instant messaging platforms like triSearch’s Communicate tool, and video conferencing tools.

Respect boundaries outside of office hours to allow all team members to switch off.

SET CLEAR EXPECTATIONS AND GOALS

Each employee should enter the work day with a clear aim. But be mindful that trying to micromanage an employee working remotely can easily backfire.

Provide clear tasks, deadlines and team targets so everyone is aligned and accountable. A team check-in meeting inviting staff to share and discuss any roadblocks and successes can be an effective way of ensuring your team is on

track.

LEVERAGE TECHNOLOGY AND COLLABORATION TOOLS

There are certain technology tools you can invest in to facilitate remote teamwork.

Project management software, filesharing platforms and video conferencing tools can help streamline communication and enhance cooperation.

Conveyancers may find cloud-based conveyancing practice management software offers an effective way for remote staff to work efficiently.

Using a PMS like triConvey allows employees to access each matter remotely, so everyone can work collaboratively on the one matter.

It also allows anyone to jump into a matter if someone assigned to it is sick or on leave.

TRUST AND AUTONOMY

When employees feel trusted and empowered, they are more likely to be motivated and productive.

The mutual trust between staff and their employer also creates an environment of transparency and establishes a sense of security for everyone.

While managing remote teams can be challenging, it can be highly successful with the right tools and strategies to ensure your team is productive and engaged.