Estate Agent Trust Account Audits

Managing trust accounts correctly is a core compliance requirement for estate agents across Australia. If your agency receives or holds trust money, you must ensure that trust accounts are audited annually by a qualified and independent auditor and that the audit is lodged with the appropriate regulatory authority.

Why Trust Account Audits Matter

Estate agents hold client funds in trust accounts. For example, deposits from property sales or rent collected on behalf of landlords. These funds must be kept completely separate from business operating accounts and handled according to strict legislative requirements. Regular audits help ensure:

• Trust money is properly accounted for

• Clients’ funds are safe and not misused

• Your agency remains compliant with state trust account laws

• Penalties, licence suspension, or regulatory action are avoided

Failing to conduct or lodge required audits can result in significant penalties and damage to your professional reputation.

Annual Audit Requirements: Victoria (Consumer Affairs Victoria)

• The audit period runs from 1 July to 30 June.

• The audit must be completed within three months after 30 June, unless an approved variation of audit date has been granted.

• Audits must be carried out by an approved auditor: Tradewise Solutions is recognised as an approved auditor for the examination of estate agent trust accounts and meets the eligibility requirements set by relevant state regulatory authorities.
• You must keep your trust accounts in a way that allows a proper and convenient audit.

• The signed audit report must be lodged with Consumer Affairs Victoria via the myCAV portal.

• Detailed documentation, including all books, statements, and records, must be provided to the auditor as required.

• Copies of your signed audit report must be retained for at least seven years.

Annual Audit Requirements: (NSW Fair Trading)

In New South Wales, similar audit obligations apply under the Property and Stock Agents Act 2002:

• Estate agents who received or held trust money during the audit period ending 30 June must have their trust accounts audited.

• The audit report must be submitted to NSW Fair Trading online by the auditor within three months after the end of the audit period and no later than 30 September of that year.

• Audits must be carried out by a qualified auditor registered under this legislation.

• Auditors cannot be recent employees, partners, or associates of the licensee being audited, ensuring independence.

• If no trust money was held during the year but a trust account existed, special reporting (such as a statutory declaration and bank statement) may be required.

Failure to lodge an audit on time in NSW may result in penalties, including potential disqualification from holding or renewing an estate agent licence.