Key Takeaways
- • Australia's alternative investment funds regulatory framework is governed primarily by the Corporations Act 2001, with new anti-money laundering and counter-terrorism financing laws taking effect in July 2026 that will expand operational compliance requirements for fund managers.
- • The ICLG 2026 guide covers regulatory frameworks, fund structures, marketing, taxation, and related compliance matters across 24 jurisdictions, with Australia-specific guidance provided by Jeremy Elmore, partner and head of funds at Travers Smith LLP.
- • Foreign investment in Australian alternative funds remains subject to foreign ownership thresholds, with limits applying to businesses valued above AUD 261 million (subject to annual indexation).
- • New operational compliance requirements linked to anti-money laundering and counter-terrorism financing legislation will require fund managers to reassess and strengthen their regulatory infrastructure in 2026.
Summary
The ICLG's 2026 Alternative Investment Funds Laws and Regulations guide provides comprehensive coverage of the regulatory environment governing alternative investment funds across 24 jurisdictions, including detailed analysis of the Australian market. The primary source of legislation regulating alternative investment funds and investment managers in Australia remains the Corporations Act 2001, which establishes the foundational framework for fund structure, marketing, taxation, and investor protections.
A significant regulatory development for Australian fund managers is the introduction of new anti-money laundering and counter-terrorism financing laws commencing in July 2026. These laws will materially affect operational requirements for fund managers, necessitating updates to compliance protocols, due diligence procedures, and reporting mechanisms. Fund managers operating in Australia should begin assessing their current regulatory infrastructure to ensure alignment with these enhanced obligations.
Foreign investors in Australian alternative funds must also navigate foreign ownership restrictions. Businesses valued above AUD 261 million are subject to foreign investment limits, with these thresholds subject to annual indexation. This framework applies across the alternative funds sector and requires foreign capital allocators to structure investments accordingly.
Jeremy Elmore, partner and head of the funds department at Travers Smith LLP, serves as the contributing editor for Australia in the ICLG 2026 guide. Elmore's practice encompasses work with asset managers and investors on implementing alternative investment programmes, providing practitioners and institutional allocators with expert guidance on navigating Australia's evolving regulatory landscape.
A significant regulatory development for Australian fund managers is the introduction of new anti-money laundering and counter-terrorism financing laws commencing in July 2026. These laws will materially affect operational requirements for fund managers, necessitating updates to compliance protocols, due diligence procedures, and reporting mechanisms. Fund managers operating in Australia should begin assessing their current regulatory infrastructure to ensure alignment with these enhanced obligations.
Foreign investors in Australian alternative funds must also navigate foreign ownership restrictions. Businesses valued above AUD 261 million are subject to foreign investment limits, with these thresholds subject to annual indexation. This framework applies across the alternative funds sector and requires foreign capital allocators to structure investments accordingly.
Jeremy Elmore, partner and head of the funds department at Travers Smith LLP, serves as the contributing editor for Australia in the ICLG 2026 guide. Elmore's practice encompasses work with asset managers and investors on implementing alternative investment programmes, providing practitioners and institutional allocators with expert guidance on navigating Australia's evolving regulatory landscape.
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