Trust Account Compliance Checker

Account held at an Authorised Deposit-taking Institution (ADI)

Must be a bank, building society, or credit union authorised under the Banking Act 1959

Separate from general/operating account

Trust funds must never be mixed with the agent's own business or personal funds

Common compliance failure point

Account name includes "trust" or "trust account"

The account must be clearly identifiable as a trust account in its title

State regulator notified of trust account details

Provide account details (BSB, account number, ADI name) to your state regulator

Receipt issued within prescribed timeframe

Timeframe varies by state — check the state selector below for your requirement

Receipt includes amount received

The exact amount in AUD must be recorded

Receipt includes date of receipt

The actual date the money was received

Receipt includes names of all parties

Vendor, purchaser, tenant, or landlord names as applicable

Receipt includes property address

Full address of the property the payment relates to

Receipt includes purpose of payment

e.g., "holding deposit", "balance of deposit", "rental bond", "rent payment"

Deposit banked within prescribed time

Timeframe varies by state — check your state's requirements

Holding deposit vs full deposit procedures documented

Clear process for handling initial holding deposits and converting to full deposits

Interest-bearing trust account rules followed

If operating an interest-bearing account, comply with your state's interest distribution rules

Common compliance failure point

Written receipt provided for all deposits

Every deposit received must have a corresponding receipt issued to the payer

Trust account journal maintained

A chronological record of all trust money received and disbursed

Monthly reconciliation performed

Reconcile the trust account balance with bank statements monthly

Common compliance failure point

Receipts numbered consecutively

Sequential numbering ensures all receipts are accounted for during audit

Trust ledger maintained for each transaction

Individual ledger for each property/client showing all trust money movements

Records retained for required period

Most states require minimum 3-5 years retention after the last entry

Only disbursed on written authority

Trust money can only be paid out when proper written authorisation is received

Common compliance failure point

Commission deducted only after settlement

Agent's commission must not be withdrawn from trust before settlement completes

Common compliance failure point

Proper authorization documented for every disbursement

Keep signed authority letters or written instructions for all payments from trust

Trust account never overdrawn

A trust account must never show a deficit — this is a serious compliance breach

Common compliance failure point

Annual audit by registered/approved auditor

Audit must be conducted by an auditor approved by your state regulator

Audit report lodged with regulator on time

Submit the completed audit report within the timeframe required by your state

Auditor has access to all records

You must provide the auditor with unrestricted access to all trust account records and documents

Any audit deficiencies addressed promptly

If the auditor identifies issues, rectify them immediately and report to regulator if required