Is virtual staging legal in Australia?

Yes, in every state and territory, as long as it doesn't mislead. Label staged photos on the image and include the unstaged original. In NSW rental ads, staging that could mislead will need to be disclosed once the new law starts, expected in early 2027.

Do real estate agents have to disclose AI-edited photos?

Only NSW has made it a legal requirement, for rental ads and only where the image is likely to mislead, from early 2027. Queensland's regulator recommends disclosing AI use. Elsewhere there's no specific labelling law, but a misleading image is illegal everywhere, so disclosure is the safe default.

Can agents remove power lines from listing photos?

No. Power lines, poles and neighbouring buildings are permanent features a buyer will see at the inspection. Queensland's guide names them specifically, and NSW bans digitally removing features.

Is it misleading to replace a grey sky with a blue one?

No regulator has ruled on sky replacement specifically. Lighting and colour fixes are accepted, so a natural-looking sky that doesn't change the view or surroundings is generally treated as low risk. Label it if in doubt.

Who is responsible if an edited photo misleads?

The agent and the agency. Queensland's guide says an agent may be liable even without knowing AI or third-party content was inaccurate, and in Victoria the principal agent is responsible for the agency's advertising.

What can I do if a listing photo misled me?

Raise it with the agency first. If that doesn't fix it, complain to your state or territory regulator, such as Consumer Affairs Victoria, NSW Fair Trading or Queensland's Office of Fair Trading.

Real estate photo editing and AI rules in Australia, state by state

Every state allows edited listing photos. No state allows photos that mislead. The detail differs: NSW has a new disclosure law for rental ads, Queensland has published an AI guide, and the rest rely on agent conduct laws and the Australian Consumer Law. This is where each one stood in October 2026.

Updated 29 October 2026 · 7 min read

Key takeaways

Editing, AI enhancement and virtual staging are legal across Australia. Photos that give a wrong impression of a property are not, in any state.
NSW passed a law on 24 September 2026 requiring landlords and agents to disclose altered or AI images in rental ads when they're likely to mislead. It's expected to start in early 2027, with fines up to $22,000 for businesses.
Queensland's Office of Fair Trading published a best practice guide in June 2026: “enhance responsibly” and “disclose AI usage”. It's guidance, not a new law.
Safe everywhere: correct light and colour, remove temporary clutter, label staged photos. Never remove or add permanent features, or fake a view.
The agent carries the risk even when a photographer, editor or AI tool made the change.

The short answer

You can edit real estate photos in Australia. You can use AI to brighten a room or add virtual furniture. What you can't do, in any state or territory, is publish a photo that would give a buyer or renter a wrong impression of the property.

Two layers of law apply. Each state has its own rules for licensed agents, and the Australian Consumer Law applies everywhere on top. Section 18 bans misleading or deceptive conduct. Section 29 bans false or misleading representations about goods and services, and section 30 does the same for land, including its location, characteristics and facilities.

For false or misleading representations, a court can order a penalty of up to $2.5 million for an individual. For a company it's the greater of $100 million, three times the benefit gained, or 30% of turnover during the breach. Those maximums apply to conduct from 28 March 2026.

The ACCC told the ABC in October 2026 that businesses should make sure AI-generated images don't create an “overall false impression”. That's the test to keep in mind for every edit.

This guide is general information, not legal advice. Laws are described as of October 2026. If you're unsure about a particular listing, ask your state regulator or a lawyer.

Rules by state and territory

Only NSW has a law written specifically for altered and AI images, and only for rental ads. Everywhere else, the general rule against misleading advertising covers photos.

As of October 2026. Penalties are maximums. Check the linked sources for changes.
State	Main rule	What it says about photos	Max penalty	Status
All of Australia	Australian Consumer Law s18, s29, s30	Misleading images are misleading conduct. The ACCC warns against AI images that create an “overall false impression”	$2.5m (individual); $100m or more (company)	In force
VIC	Estate Agents Act 1980; Consumer Affairs Victoria guidance	Don't use photos “digitally or otherwise enhanced to hide undesirable features or promote other features”	25 penalty units (about $5,200) for a false or misleading ad	In force. No AI label rule
NSW (sales)	Property and Stock Agents Act 2002; Fair Trading advertising guidelines	Don't digitally remove or add features, or zoom in to make a view look closer. Lighting fixes may be acceptable	$110,000 court penalty for misrepresentation	In force
NSW (rentals)	Residential Tenancies Act 2010, new s22B	Disclose digitally generated or altered images that are reasonably likely to mislead	$5,500 (individual); $22,000 (business)	Passed 24 Sep 2026. Expected early 2027
QLD	Property Occupations Act 2014 s212; OFT best practice guide (June 2026)	Enhance responsibly, disclose AI use, don't remove power lines or add trees, pools or views	540 penalty units	Law in force. Guide is best practice
WA	Agents' Code of Conduct 2016; Australian Consumer Law (WA)	Consumer Protection says false or misleading claims can be made “in photographs”	ACL penalties	In force. No photo-specific rule
SA	Australian Consumer Law; SA government guidance	“It's illegal to misrepresent a property for sale” verbally, in writing or with photographs	ACL penalties	In force. No photo-specific rule
TAS	Property Agents and Land Transactions Act 2016 s56	Agents must not represent anything false or misleading about the letting or sale of property	500 penalty units	In force. No photo-specific rule
ACT	Agents Regulation 2003, rules of conduct 8.4 and 8.16	Agents must not mislead or deceive any party, or advertise in ways they know or should know are misleading	ACL penalties	In force. No photo-specific rule
NT	Agents Licensing Act 1979 s115	Ads must not contain a statement that is false, misleading or intended to deceive	100 penalty units or 6 months' jail (individual); 500 penalty units (company)	In force. No photo-specific rule

Penalty unit values change every financial year and differ by state. Victoria's is $209.10 for 2026-27.

NSW: the new disclosure law for rental ads

NSW Parliament passed the Residential Tenancies Amendment (Protection of Personal Information) Bill on 24 September 2026. It adds a section 22B to the Residential Tenancies Act. Landlords and their agents will have to disclose, in the ad, “the use of digitally generated or altered images if the images are reasonably likely to mislead or deceive a person”.

The government's examples: fake furniture hiding structural damage, furniture that makes a single bedroom look like it fits a double bed, photos edited to obscure damage, and images that misrepresent room proportions. The rules are expected to take effect in early 2027, with fines of up to $22,000 for businesses and $5,500 for individuals.

Two things to note. First, the test is whether an image is likely to mislead, so ordinary colour and exposure correction shouldn't need a label. Second, the law covers rental ads only. NSW sales listings are already covered by Fair Trading's advertising guidelines, which say agents must not “change the appearance of a property by digitally removing or adding features”. A photo taken off the property but nearby, such as the local park, must be labelled “location shot”.

Queensland: enhance responsibly, disclose AI

Queensland's Office of Fair Trading published “Best practice guide: Avoiding misrepresentations in the real estate industry” on 18 June 2026. It covers sales and rentals, and it's the most specific guidance any Australian regulator has published on AI images.

Recommended: use AI to improve lighting, colour and clarity, “but ensure the final image reflects the property's actual condition”.
Recommended: clearly indicate when images have been digitally enhanced or virtually staged. The guide's example note: “This image has been digitally enhanced for illustrative purposes.”
Avoid: removing unattractive features such as power lines and neighbouring buildings, or adding things that don't exist, such as trees and pools.
Avoid: fake views, wide-angle shots that distort room sizes, old photos, and AI changes to layouts, windows or landscapes.

The guide's warning to agents is blunt: even if you didn't know that content from a third party or an AI tool was inaccurate, “you may still be liable”. Under section 212 of the Property Occupations Act, a representation made without reasonable grounds is treated as misleading. The ABC reported that the OFT had received six complaints about digitally altered real estate images since January 2025.

Victoria

Consumer Affairs Victoria says agents “should not use photographs that give the wrong impression of a property”, including photos enhanced to hide undesirable features or promote others. An offence can happen whether or not anyone meant to mislead, and the principal agent or officer in effective control is responsible for the agency's advertising. Publishing a false or misleading ad carries up to 25 penalty units under the Estate Agents Act.

Victoria has no separate rule that says “label AI images”, and we found no proposal for one as of October 2026. Our Victorian guide to virtual staging and photo editing rules goes through the CAV rule edit by edit.

What's allowed and what isn't

This table works in every state, because it follows the strictest guidance published so far: NSW's advertising guidelines, Queensland's AI guide and the Victorian rule.

Common listing edits, judged against published regulator guidance. When in doubt, leave it in or label it.
Edit	OK?	Why
Exposure, colour, white balance	Yes	QLD and NSW both accept lighting and colour fixes that show the real condition
Straightening verticals, lens correction	Yes	Removes camera distortion, not features
Removing bins, cars, cords, personal items	Yes	Temporary things a buyer won't find at the inspection
Grey sky to blue sky	Usually, kept natural	No regulator has ruled on skies. Don't change the view or surroundings
Day-to-dusk conversion	Yes, labelled	Only light windows and fittings the home actually has
Virtual staging	Yes, labelled	QLD asks agents to indicate staged images. NSW rentals need disclosure if staging could mislead
Ultra-wide lens that exaggerates size	No	QLD names wide-angle distortion of room sizes
Removing power lines, poles, towers	No	Named in QLD's guide. Permanent features
Removing neighbouring buildings	No	Named in QLD's guide. Changes outlook and privacy
Hiding damage, stains, mould, a green pool	No	QLD's pool case. NSW's damage examples
Adding trees, a pool, a view, windows	No	Named in QLD's guide. Promotes features that don't exist
Zooming in to bring a view closer	No	Named in NSW's guidelines
Old photos that no longer match	No	QLD: avoid outdated photos

How to label edited and staged photos

A label only helps if a buyer sees it. Put it on the image, because photos get shared without the listing text. Wording that works:

Virtually staged. For digitally added furniture.
Virtually staged. Furniture not included. For rentals and anywhere furniture could be read as part of the deal.
Digitally enhanced. For day-to-dusk edits and heavier retouching.
Artist's impression. For renders of something not built yet.
Location shot. For nearby parks, beaches or cafes photographed off the property (required in NSW).

In the listing text, a line such as “Some photos in this listing are virtually staged” covers the rest. Run the unstaged original next to every staged photo. And remember a label doesn't cure a misleading edit: a disclosed photo with the power lines removed still hides the power lines.

How we edit

We work to the strictest of these rules on every job, wherever the listing is. We fix colour, exposure and lens distortion. We remove temporary clutter only. We never remove power lines, neighbouring buildings or damage. Every virtually staged photo is labelled on the image and delivered with the original.

See photo editing and virtual staging, both available to agents anywhere in Australia, or get a quote.

Sources