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AUSTRAC Tranche 2 · Compliance Cost Guide · 4 min read · Klyvon Compliance Team
How much does AML compliance cost in Australia?
Compliance costs vary significantly by approach. This guide compares every option — DIY, boutique consultant, Big 4 law firm, and compliance software — with real figures so you can make an informed decision.
Written by the Klyvon Compliance Team · Melbourne, Australia · General guidance only, not legal advice
$5k–$50k+
Consultant range
Boutique to Big 4
From $299/mo
Klyvon Essential
60-second program generation
What does the government say compliance costs?
The Australian Government's Impact Analysis for the AML/CTF Amendment Act 2024 estimates compliance costs by business turnover, not a single flat figure. A typical small-to-medium professional services firm (turnover $200k–$2m — the bracket most Tranche 2 entities fall into) faces an estimated $28,650 upfront and $33,230/year ongoing.
| Turnover | Upfront | Annual |
|---|---|---|
| $0 – $200k | $4,460 | $6,020 |
| $200k – $2m | $28,650 | $33,230 |
| $2m – $10m | $38,130 | $43,750 |
| $10m+ | $85,550 | $82,660 |
Full cost comparison
| Approach | Setup cost | Annual cost | Time to comply | Best for |
|---|---|---|---|---|
| DIY — AUSTRAC starter kit | $0 | Staff time only | 2–6 weeks | Very simple businesses with time available |
| Boutique AML consultant | $5,000–$15,000 | $3,000–$8,000 | 3–8 weeks | Small-medium firms wanting expert guidance |
| Law firm / Big 4 | $20,000–$50,000+ | $10,000–$25,000+ | 4–12 weeks | Complex, high-risk, multi-service businesses |
| Klyvon Essential | From $299/month | $3,588/year | One session + review | Small–medium firms in all 5 Tranche 2 industries |
What is included in the cost of compliance?
The total cost of AML/CTF compliance for a newly captured Tranche 2 business typically breaks down into these components:
ML/TF risk assessment
$0 (internal time)
$2,000–$5,000
Included
AML/CTF program (risk framework + CDD)
$0 (internal time)
$3,000–$8,000
Included
CDD templates
$0 (internal time)
$500–$2,000
Included
Compliance officer letter
$0 (template)
$300–$1,000
Included
Staff training
$0 (DIY)
$1,000–$3,000
Included
AUSTRAC enrolment guide
$0 (free)
Often included
Included
DIY
Consultant
Klyvon
The real cost of non-compliance
Framing compliance purely as a cost misses the other side of the ledger. Non-compliance with the AML/CTF Act 2006 carries civil penalties of up to $33,000,000 per contravention (based on the current penalty unit rate of $330; due to re-index 1 July 2026 pending official publication) for bodies corporate and $19,800 per day for non-enrolment. AUSTRAC publishes all enforcement actions publicly — the reputational consequences extend beyond the financial penalty.
See the full list of past enforcement actions on the AUSTRAC Penalty Register.
Which approach fits your firm size?
The right approach depends mostly on your size and complexity — the figures below reuse the government's turnover-tiered estimates and the comparison table above.
Sole practitioner or 1–3 staff
Government estimate for the $0–$200k turnover tier: $4,460 upfront, $6,020/year. DIY with AUSTRAC's free starter kit is workable if you can spare 2–6 weeks of internal time; compliance software gets the same documents done in a session and keeps the registers maintained for you.
Small–medium firm ($200k–$2m turnover)
Government estimate: $28,650 upfront, $33,230/year — the bracket most Tranche 2 entities fall into. Compliance software covers the program, CDD templates, training and registers at a fraction of that; add a one-off consultant review if your services are higher-risk.
Larger or complex firm ($2m+ turnover)
Government estimates: $38,130–$85,550 upfront, $43,750–$82,660/year. Multi-service or high-risk businesses generally need a consultant or law firm to tailor the program — software still earns its keep for day-to-day CDD records, training and reporting registers.
Frequently asked questions
How much does AML compliance cost in Australia?
The government's Regulation Impact Statement estimates costs by business turnover, not a flat figure — a typical small-to-medium professional services firm ($200k–$2m turnover) faces an estimated $28,650 upfront and $33,230/year ongoing, covering staff time, external advice, and software. Klyvon is designed to reduce that cost substantially.
Do I need an AML consultant to comply with AUSTRAC Tranche 2?
No. AUSTRAC does not require that AML/CTF programs be prepared by a consultant or lawyer. Many small businesses use AUSTRAC's free sector starter kits as a foundation, or use compliance software like Klyvon that generates a firm-specific program in one session. For complex businesses or those with higher risk profiles, review by a qualified AML/CTF adviser is recommended but not mandatory.
What does a boutique AML consultant charge?
Boutique AML/CTF consultants typically charge $5,000–$15,000 for a complete compliance program for a small professional services firm. This generally includes a risk assessment workshop, program document drafting, CDD procedure templates, and a training session. Ongoing retainer costs range from $3,000–$8,000 per year for program reviews and regulatory updates (indicative range — costs vary significantly by business size and complexity).
How much do law firms and Big 4 charge for AML compliance?
Large law firms and Big 4 accounting firms charge significantly more: typically $20,000–$50,000+ for initial program development, with ongoing advisory fees of $10,000–$25,000+ per year. These services are generally more appropriate for complex businesses with high-risk client profiles, multiple service lines, or cross-border operations.
Is Klyvon cheaper than using a consultant?
Yes, significantly. Klyvon generates a firm-specific AML/CTF program (risk framework and CDD procedures) in one session from $299/month — against a government-estimated $28,650 upfront and $33,230/year ongoing for a typical small-to-medium firm using external help. Klyvon is designed to reduce that cost substantially. The program is based on AUSTRAC's official sector guidance and is customised to your specific services and risk profile. It requires review and adoption by your compliance officer before implementation.
From $299/month
Klyvon generates your complete AML/CTF program in one session. No consultant required.
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