Australia’s Beneficial Ownership Reforms: What You Need to Know

Australia currently lacks a systematic framework to collect, verify and record beneficial ownership information across all corporate structures. This creates gaps in corporate transparency and regulatory enforcement.

To close these gaps, Treasury is developing a comprehensive beneficial ownership disclosure regime. These reforms aim to enhance Australia’s compliance with international obligations, including the Financial Action Task Force (FATF) Standards, thereby reinforcing the country’s global reputation in combating money laundering, terrorist financing, and related crimes.

The creation of a centralised register:
Under a staged approach, Australia proposes introducing a publicly accessible, government-operated beneficial ownership register. This initiative would help regulators, journalists, academics and eligible professionals to access accurate UBO information more easily.

Stricter disclosure requirements:
Unlisted companies, certain trusts and other entities may be required to collect, verify and maintain comprehensive records of their ultimate beneficial owners, including natural persons with significant influence or control.

Risk-based adjustments:
Low-risk entities, such as those already meeting certain standards, may follow simplified procedures, while high-risk structures could face more rigorous verification and ongoing compliance measures.

Enhanced enforcement powers:
The Australian Securities and Investments Commission (ASIC) may receive additional tools, such as the authority to issue freezing notices, to ensure compliance and deter attempts to obscure ownership.

Privacy and protection measures:
Provisions may allow vulnerable individuals to request suppression of sensitive information, aiming to balance transparency with the need to safeguard personal privacy and safety.