Learn what you need to do to apply for an exemption from one or more of your obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the Act).

On this page

• What type of exemption or modification to apply for
• Applying for a Rules based exemption
• Applying for a modification or exemption declaration
• Processing times
• Related pages

You can apply for an exemption from one or more of your obligations under the Act. You can also apply to have your obligations under the Act modified. 

Other exemptions from obligations are set out in legislation and will apply if you meet the relevant criteria.

What type of exemption or modification to apply for

There are 2 types of exemption you can apply for:

1. Anti-Money Laundering and Counter-Terrorism Financing Rules (the Rules) based exemption

   You can apply to have an exemption made through the Rules. This will apply to all reporting entities and/or designated services that fit the criteria. This is known as a ‘general exemption by Rule’. It’s made under section 247 of the Act. It’s usually made by a group of reporting entities or on their behalf by a representative body, like an industry association.

2. Modification or exemption declaration

   You can also apply to have an exemption from, or a modification of, provisions of the Act made specifically for you. These are made under section 248 of the Act.

We publish lists of exemptions and modifications that have been granted and revoked.

Applying for a Rules based exemption

Exemptions aren’t a way for reporting entities to avoid meeting their obligations. We’ll only grant an exemption where: 

• the money laundering and terrorism financing (ML/TF) risk associated with the proposed exemption is low
• it’s clearly needed to avoid unnecessary regulatory and financial burden on reporting entities.

We ask that you hold off making a request in relation to new tranche 2 designated services until we publish guidance on this topic in October 2025.

Applications for exemption by the Rules will be considered if they: 

1. are made in writing and sent to exemptions@austrac.gov.au
2. include the name of the person/reporting entity/reporting entities/industry association/professional body. It also needs to include the Australian business number (ABN) or Australian company number (ACN) of the person making the request
3. contain the name and contact details of a person we can confirm receipt of the application with and direct any follow-up questions and requests for further information to
4. set out which designated services the proposed exemption will apply to. Specify the Table and relevant item number(s) in section 6 of the Act
5. contain a detailed description of the particular circumstance(s) in which the relevant designated service is, or is to be, provided. If this isn’t applicable, the application must indicate that it’s not applicable
6. clearly identify the section(s) of the Act from which the exemption is requested
7. propose a period for which the exemption will apply and provide reasons why this period has been chosen. Exemptions won’t be granted for an indefinite period
8. include any assessment that has been prepared regarding ML/TF risk that applies to the designated service and/or circumstances in which the service is provided. You need to take into account any relevant AUSTRAC or Financial Action Task Force publications or guidance. If no assessment has been prepared, the application must provide a detailed explanation as to why no assessment has been prepared and address the issue of ML/TF risk
9. provide a detailed explanation of any one-off costs and any ongoing costs of complying with the relevant provision(s) of the Act from which the exemption is sought. For example, the one-off cost in establishing an AML/CTF program and the ongoing costs of complying with the AML/CTF program
10. provide a detailed explanation as to why the exemption is sought, including (if appropriate) why it’s not commercially feasible for the reporting entity or entities who provide a particular designated service to comply with the requirement(s) of the Act or any other reasons why, in the view of the applicant, it’s not appropriate that the particular provision(s) of the Act apply
11. include, if relevant and to the extent possible, a detailed explanation of any issues of competitive neutrality. For example, whether any third party’s rights may be adversely or favourably affected should the application be granted and, if so, how those rights are affected. If this isn’t relevant, the application must indicate that it’s not relevant and why
12. provide any other relevant supporting information. 

Factors that we’ll take into account in assessing an application include:

• the ML/TF risk associated with the proposed exemption or modification
• Parliament’s intent of the scope and application of regulation under the Act
• the impact on the integrity of the financial system
• the additional compliance costs that would be incurred if the exemption wasn’t made
• competitive neutrality
• consistency with global best practice and Financial Action Task Force recommendations
• other matters (if any) as our CEO considers relevant.

We consult with industry and other government agencies and release draft Rules for a period of public consultation, before making such an exemption. The Rules based exemptions are subject to Parliamentary scrutiny. The Senate Scrutiny Committee on Delegated Legislation examines each Rules Instrument against a set of scrutiny principles. 

In the case of an instrument that exempts persons or entities from the operation of primary legislation, the Scrutiny Committee examines the instrument as to whether it’s in force only for as long as is strictly necessary.

Applying for a modification or exemption declaration

To apply for a modification or exemption declaration, fill in the application form (Word, 163 KB) and email with supporting information to exemptions@austrac.gov.au. 

Our exemption policy has more details on the application process.

Processing times

We usually acknowledge applications within 7 business days of receiving them. We thoroughly assess each application and aim to make timely decisions that support commercial certainty. However, all applications are different, and we don’t provide a timeframe for a decision. 

In exceptional circumstances, we may consider prioritising applications submitted urgently. If you mark an application as ‘urgent’ you must provide an explanation about why the urgency is beyond your control. 

Related pages

• Exemptions from AML/CTF obligations
• Exemption policy

Related resources

• Exemption application form (Word, 163 KB).