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AUSTRAC reporting: A complete guide for Australian businesses

Published July 13, 2026

If your business is preparing for Tranche 2 AML/CTF reforms, you've probably come across the term AUSTRAC reporting more than once. But what exactly does it mean? Do all businesses need to report transactions? Which reports are mandatory? What happens if you never have anything suspicious to report?

These are common questions, particularly for businesses entering Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime for the first time. This guide explains the different types of AUSTRAC reporting, when reports need to be submitted, and how Tranche 2 businesses can confidently meet their reporting obligations.

Who is AUSTRAC?

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia's financial intelligence agency and AML/CTF regulator. Its role is to detect, deter and disrupt money laundering, terrorism financing and other serious financial crime. To do this, AUSTRAC requires reporting entities (including Tranche 1 and now Tranche 2 businesses) to provide them with information about certain activities and transactions. This information helps AUSTRAC and other government agencies identify criminal behaviour, supports law enforcement investigations and protects Australia's financial system.

What is AUSTRAC reporting?

AUSTRAC reporting refers to the legal obligation for reporting entities to submit certain reports to AUSTRAC under the AML/CTF Act. Importantly, businesses do not need to (and should not) report every transaction. Instead, reporting requirements apply only in specific circumstances, such as when:

The exact reporting obligations depend on the type of designated service(s) your business provides.

Why do businesses need to report to AUSTRAC?

Reporting by Tranche 1 and 2 entities allows AUSTRAC to identify patterns of criminal activity that would otherwise be difficult for them to detect on their own. While a single individual report may appear insignificant, it can be highly valuable when combined with information from other reporting entities (such as banks, casinos, accountants, lawyers or real estate professionals).

This intelligence helps law enforcement agencies investigate offences including money laundering, terrorism financing, organised crime and fraud.

For reporting entities, these obligations are an important part of Australia's risk-based AML/CTF framework.

What must be reported to AUSTRAC?

There are four key reporting obligations businesses should understand.

Suspicious Matter Reports (SMRs)

For most Tranche 2 businesses, Suspicious Matter Reports (SMRs) are the report that will most impact them. While it’s unlikely you’ll need to submit SMRs every other day, when you do encounter a suspicious matter, you need to know what to do (and when to do it). An SMR is required where there are ‘reasonable grounds to suspect’:

One of the biggest misconceptions is that businesses need proof before lodging an SMR. They don't. The legal threshold is this ‘reasonable grounds for suspicion’ that we mentioned earlier. There is no expectation that you be certain that anything nefarious is taking place. We talk about this concept more on a recent blog.

Importantly, businesses should also document decisions where they decide NOT to lodge an SMR. This should include the information used to reach that decision, and why the decision was made. This creates an important audit trail if AUSTRAC later reviews the matter.

A Suspicious Matter Report must be submitted to AUSTRAC within 24 hours if the suspicion relates to terrorism financing, or within 3 business days for all other suspicions. Separate provisions apply where the SMR contains information covered by legal professional privilege.

Threshold Transaction Reports (TTRs)

Threshold Transaction Reports apply when a reporting entity conducts transactions involving physical currency (actual cash) that exceeds $10,000 AUD. Many Tranche 2 businesses will never need to submit a Threshold Transaction Report because they do not routinely receive large cash payments. However, if your business does conduct reportable cash transactions, these reporting obligations may apply.

TTRs are due to be submitted to AUSTRAC within 10 business days after the transaction has taken place.

International funds transfer reports

Businesses that send or receive certain international funds transfers may also have reporting obligations. Historically these have been known as International Funds Transfer Instruction (IFTI) Reports, although the reporting framework is evolving under the AML/CTF reforms.

Again, many Tranche 2 businesses may never need to submit these reports, depending on the services they provide.

IFTI reports must be submitted to AUSTRAC within 10 business days of the transfer taking place (either in or out of Australia).

Annual compliance reports

Unlike the previous reporting types, Annual Compliance Reports apply broadly to all reporting entities. These reports provide AUSTRAC with information about how your business is meeting its AML/CTF obligations, including your compliance framework and reporting activities during the reporting period.

For many Tranche 2 businesses, this will become a routine annual obligation alongside maintaining an AML/CTF Program and customer due diligence processes.

AUSTRAC operates under a financial year reporting period (i.e. July to June). Your annual compliance report is due within 3 months of the end of the reporting period. So, for the period 1 July 2026 to 30 June 2027, the annual report will be due by 30 September 2027.

What industries need to report to AUSTRAC?

Many industries (Tranche 1) already report to AUSTRAC under the existing AML/CTF regime, including banks & other financial institutions, money remitters, casinos and gambling providers.

From 1 July 2026, reporting obligations will also extend to many Tranche 2 professions providing designated services, including:

This often raises questions such as “Are jewellers required to report to AUSTRAC?” The answer depends on the services being provided. Dealers in precious metals and precious stones that provide designated services under the AML/CTF framework may have reporting obligations. Simply selling jewellery does not automatically make every jewellery business a reporting entity.

Likewise, people often ask whether “banks are required to report to AUSTRAC” or “casinos are required to report to AUSTRAC”. Yes. Both sectors have long been reporting entities under Australia's existing AML/CTF regime and are already subject to extensive reporting obligations.

How do you submit an AUSTRAC compliance report?

Reporting is completed electronically through AUSTRAC Online. Before submitting reports, businesses should have processes that allow them to:

AUSTRAC reporting is not simply about completing a form and being done with it. Reporting entities need to ensure they provide the necessary information to support the decision to report (or, just as importantly, recording the decision not to report). This is why having documented workflows and a strong audit trail is critical.

How AML software simplifies AUSTRAC reporting

While businesses remain legally responsible for their reporting obligations, the right technology can make this significantly easier. Rather than relying on spreadsheets, emails and manual file notes, AML software helps centralise all your AML compliance obligations from customer due diligence & risk assessments right through to reporting and record-keeping.

This means businesses can identify reportable matters more consistently, maintain stronger audit trails and retrieve supporting documentation quickly if required. At easyAML, we've designed our platform to support businesses throughout the entire compliance lifecycle.

Get started for free today with no lock-in contracts, no credit card required and no commitments.

Frequently asked questions

What is an AUSTRAC compliance report?

An AUSTRAC compliance report is information submitted by a reporting entity to AUSTRAC under the AML/CTF Act. Depending on the circumstances, this may include Suspicious Matter Reports, Threshold Transaction Reports, International Funds Transfer Reports or an Annual Compliance Report.

What transactions must be reported to AUSTRAC?

Not every transaction must be reported. Reporting is generally required where legislation specifies, such as reportable cash transactions, certain international funds transfers or where suspicious activity gives rise to a Suspicious Matter Report.

Are banks required to report to AUSTRAC?

Yes. Banks are reporting entities under Australia's AML/CTF regime and have extensive reporting obligations.

Are casinos required to report to AUSTRAC?

Yes. Casinos are longstanding reporting entities and must meet AML/CTF reporting obligations, including submitting required reports to AUSTRAC.

Are jewellers required to report to AUSTRAC?

Dealers in precious metals and precious stones may have reporting obligations where they provide designated services under the Tranche 2 reforms. Whether a particular jeweller is captured depends on the services it provides.

Do all Tranche 2 businesses need to lodge Suspicious Matter Reports?

Not necessarily. Businesses only lodge an SMR when there are reasonable grounds for suspicion. However, every reporting entity should have processes for identifying, escalating and documenting potential suspicious matters.