REINZ backs tiered levy after early engagement with the Ministry of Justice
Real estate agencies will pay a new Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) levy scaled to the value of transactions they settle, under regulations approved for 2026 that come into force on 8 October.
The levy exempts reporting entities with less than $10 million in settled transactions in the previous financial year. Agencies settling between $10 million and $50 million will pay $398, while those exceeding $50 million will pay $769. The levies apply from the financial year commencing 1 July 2027 and each year after.
The levy sits within a wider reform REINZ has also welcomed: changes aimed at making the AML/CFT regime "smarter, more proportionate, and focused on genuine risk," according to Associate Justice Minister Nicole McKee. REINZ general counsel Melisa Beight said the changes "strike an important balance, maintaining strong safeguards while reducing unnecessary complexity for low-risk transactions."
Real estate isn't the only sector facing new levies: an earlier consultation on the same reform proposed banks pay roughly $23 million annually – about 85% of the total $27 million – with ANZ's indicative share around $6.8 million, ASB, BNZ, and Westpac each above $4 million, and Kiwibank near $1.3 million.
REINZ says early engagement shaped a fairer outcome
Against that broader backdrop, the Real Estate Institute of New Zealand (REINZ) has welcomed the real estate-specific outcome, with chief executive Lizzy Ryley (pictured) saying the tiered structure reflects the diversity of the sector, from small family-owned businesses to larger national franchise networks.
"It was important that the levy did not impose an unreasonable burden, especially on smaller agencies that are already meeting substantial AML/CFT compliance costs," Ryley said.
REINZ said it had engaged with the Ministry of Justice early in the levy-design process, advocating for an approach that accounted for the practical realities facing real estate agencies of different sizes.
Ryley described the final outcome as relatively modest for the sector, crediting the ministry for engaging constructively throughout the process.
A model for future industry consultation
REINZ pointed to the levy design as an example of effective early-stage policy engagement.
"This is a good example of what can be achieved when industry is consulted early and given a meaningful opportunity to contribute sector insights to regulatory design," Ryley said.
The organisation also acknowledged Associate Justice Minister Nicole McKee for her leadership of the AML/CFT reform programme, noting her stated commitment to reducing unnecessary compliance burden while keeping the regime focused on genuine financial crime risk.
REINZ said it will continue working with the Ministry of Justice and Department of Internal Affairs to advocate for regulation that targets real risk without adding unnecessary cost or complexity for real estate professionals.
For mortgage advisers, the levy structure is a useful reference point when discussing AML/CFT compliance costs with real estate partners, particularly smaller agencies weighing the cumulative cost of regulatory obligations alongside existing due diligence requirements shared across the property transaction chain.
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