New South Wales has introduced laws to curb misleading rental advertisements using digitally altered or AI-generated images, but the government’s launch was undermined by wrongly identifying a genuine property photograph as doctored. The image showed a Bondi Beach mural in the courtyard of a Leichhardt apartment, not a fabricated coastal view, prompting the estate agency to deny any digital alteration.

The legislation, taking effect in early 2027, will allow fines of up to $22,000 for real estate businesses that fail to disclose altered or AI-generated images. The rules target “housefishing”, in which edits misrepresent a property’s size, condition or features, while industry figures distinguish acceptable virtual staging from changes that could deceive prospective buyers. The mural reportedly cost about $5,000 and remains in place.