Criminals have long used real estate as a way of laundering or concealing funds – not only can they get that trophy house, a real estate purchase allows a large amount of money to be laundered in a single transaction.   

One of the biggest shifts for law firms under Tranche 2 of the anti-money laundering (AML) and counter-terrorism financing (CTF) regime will be undertaking customer due diligence (CDD) before acting. 

Every law firm that provides a “designated service” must establish and maintain an anti-money laundering (AML) and counter-terrorism financing (CTF) program. Think of it as the rulebook your firm writes for itself, setting out how your firm identifies, assesses and manages AML/CTF risk. 

It is important for law firms to obtain clarity on what services are captured by the anti-money laundering (AML) and counter-terrorism financing (CTF) regime. 

For years, Australian law firms have heard rumblings about anti-money laundering (AML) and counter-terrorism financing (CTF) rules extending to the legal profession. With the passing of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth) (Act), those rules are finally here.

Every practice providing designated services must develop an AML/CTF program. Think of it as your playbook for managing money-laundering risk. 

The risk assessment is the cornerstone of your AML/CTF obligations.

The AML/CTF regime uses a ‘designated services’ model for regulation.  This means that regardless of branding or occupation, if a business provides one or more Designated Services as set out in the Act, they are regulated under the regime.

Internationally, the professions - accountants and lawyers,  have been consistently characterised as “gatekeepers” and “professional enablers” of crime and corruption – remember the Panama Papers?

With the passage of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 to providers of certain professional services, these  ‘Tranche 2” entities – including many accounting practices – will become regulated by Australia’s Anti-Money Laundering regime from 1 July 2026. 

Harwood Andrews is delighted to have been identified by clients and peers for expertise and abilities for Victoria in the 2025 Doyles Guide.

Harwood Andrews is delighted to have been identified by clients and peers for expertise and abilities for Victoria in the 2025 Doyles Guide.

Appropriately considering the successive control of discretionary trusts, at both a trustee and an appointor level, is a critical component in succession planning. The recent Queensland Court of Appeal decision of Staley v Hill Family Holdings Pty Ltd highlighted this, after broad variation powers resulted in the removal of an appointor by a trustee which could have been avoided had the succession of the trust been properly addressed. 

After a relationship breakdown, one of the most pressing concerns for a separated person is often how they are going to be able to financially support themselves going forward. This is particularly so if it is now down to them alone to meet their bills and living expenses which were previously shared with or paid by their former partner.

A review has been conducted of the Retirement Villages Act 1986 (Vic) (Retirement Villages Act) based on community feedback that the current legislation does not provide adequate protection for retirement village residents.  The new laws offer greater safeguards and regulation of many aspects of retirement villages and residence contracts for retirement villages.  The changes are extensive, however we have detailed below some of the significant changes.

The Victorian Supreme Court’s decision in Beecham Motors Pty Ltd v General Motors Holden Australia [2025] VSC 125 highlights the importance of precise contractual drafting. Beecham Motors, a Holden dealership, sued GM Holden after General Motors announced the Holden brand’s exit from Australia, disrupting their contract.

This recent decision emphasises the need for clear, precise contract terms rather relying on good faith to give effect to uncertain terms. 

Foreign purchasers living within Australia must be aware of important requirements to fulfill a section 69AJ exemption under the Duties Act 2000 (Vic). The case of Sim v Commissioner of State Revenue [2025] VCAT 349 highlights how all requirements of section 69AJ must be met to receive an exemption to the foreign purchaser additional duty.

The Victorian Government has introduced a new 50% penalty tax for cases of recklessness under state tax laws, as part of the 2025–26 State Budget measures. This penalty applies where a taxpayer or their advisor is found to have acted recklessly, causing a tax shortfall or failing to meet notification requirements.

Previously, penalties ranged from 25% (negligence) to 75% (intentional disregard). There are concerns that this new penalty could be unfairly applied in complex cases, especially involving trusts or foreign interests, where rules are often misunderstood.

The Aged Care Restrictive Practices Substitute Decision-maker Act 2024 (Vic) (the Act) came into effect on 1 July 2025. The Act will only apply to Victorian residents.

Harwood Andrews is proud to announce two well-deserved promotions effective 1 July 2025.

When considering asset protection, gift, loan and mortgage arrangements are a key strategy, particularly in the context of protecting assets against creditor or insolvency claims as well as parents providing financial assistance to adult children. The effectiveness of the strategy relies upon ensuring that that agreement is correctly documented and implemented.