Frequently asked questions
These answers are purposefully direct. Trust account audit rules enforce strict independence boundaries and unyielding lodgement deadlines.
What is a trust account audit?+
A trust account audit is an independent compliance review of the money your business holds on behalf of clients. During a trust account audit, a qualified auditor verifies that your bank statements, reconciliations, and ledgers comply with state legislation, and then prepares a formal report for lodgement with the relevant regulatory body.
Who needs a trust account audit in Australia?+
In Australia, a trust account audit is generally required for licensed professionals who receive, hold, or disburse client money. This includes real estate agents, property managers, conveyancers, solicitors, and accountants managing client funds. If your professional licence authorises you to operate a trust account, you must complete this annual compliance step.
What is the trust account audit due date?+
The due date for your trust account audit depends entirely on your profession and state legislation. For example, a NSW real estate trust account audit is due by 30 September, whereas Victoria requires lodgement within 10 business days of receiving the report (which must be completed by 30 September). In Queensland, the deadline rolls based on your licence issue month. We highly recommend checking your specific state requirements to ensure timely lodgement.
Who is legally allowed to perform a trust account audit?+
A trust account audit must be conducted by a qualified and strictly independent auditor. Depending on your state and profession, this generally means a Registered Company Auditor (RCA), a member of a recognised professional accounting body holding a Public Practice Certificate, or an auditor explicitly approved by the state regulator.
Can my regular tax accountant complete my trust account audit?+
Generally, no. Professional accounting standards strictly prohibit an auditor from reviewing their own work to prevent a 'self-review threat'. If your accountant prepares your business financials, lodges your tax returns, or manages your bookkeeping, they cannot legally perform your trust account audit. You must engage a completely independent auditor for this service.
What documents are required for a trust account audit?+
To complete your trust account audit smoothly, you need to provide complete and unaltered trust records. Common requirements include bank statements for the full audit period, signed end-of-month reconciliations, trial balances, client ledgers, and receipt books. Once you engage AuditsPro, we provide a tailored, state-specific document checklist to streamline the process for you.
What if I held a licence but did not receive any trust money this year?+
Even if your trust account had a zero balance or no transactions, you still have a regulatory obligation. Instead of a full trust account audit, you are typically required to lodge a formal 'Declaration of No Trust Money' or a statutory declaration with your state regulator. This must be submitted by the standard audit deadline to maintain your licence compliance.
Is a solicitor's trust account audit the same as a real estate audit?+
No, they operate under entirely different regulatory frameworks. A legal practice requires an 'External Examiner's Report' submitted to the relevant Law Society (for instance, due 31 May in NSW). The compliance rules, forms, and terminology for a solicitor's trust account audit differ significantly from those in the property and real estate industry.
How much does a trust account audit cost in Australia?+
At AuditsPro, our standard trust account audit fees start from $549 + GST. The final fixed fee is determined by your profession, state regulator, the number of trust accounts you operate, and the overall transaction volume. We provide transparent, upfront pricing before any work begins so you know exactly what to expect.
Who can audit real estate trust accounts in NSW?+
In New South Wales, a real estate trust account audit must be conducted by an auditor who is entirely independent of the agency. Eligible auditors must hold a current Public Practice Certificate issued by CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), or the Institute of Public Accountants (IPA). Registered Company Auditors (RCAs) are also eligible. Critically, the auditor cannot have prepared the agency's accounts, provided bookkeeping services, or have any financial or personal relationship with the licensee. NSW Fair Trading specifically prohibits an accountant who has handled the agency's tax or business accounts from conducting the trust account audit — even if they are otherwise qualified.
What is the trust account audit deadline in Queensland?+
Unlike most states, Queensland does not use a fixed 30 June financial year for trust account audits. Your audit period is determined by the month your real estate or property industry licence was originally issued. The completed audit report must be lodged with the Office of Fair Trading within 4 months of the end of your specific audit period. For example, if your licence was issued in March, your audit period ends in March each year and your lodgement deadline falls in July. In the final year of a business, this deadline shortens to just 2 months after trading ceases — a common compliance trap. Always confirm your exact deadline by checking your licence issue date with the OFT.
What happens if I miss my trust account audit deadline?+
Missing a trust account audit deadline is a serious compliance breach. Depending on your state, consequences can include formal disciplinary proceedings, monetary fines, conditions placed on your licence, licence suspension, or cancellation. NSW Fair Trading, Consumer Affairs Victoria, the Queensland OFT, and equivalent state regulators are authorised to take action against licensees who fail to lodge on time. In some states, operating beyond the lodgement deadline is treated as operating with a non-compliant licence. If you have missed your deadline, contact your state regulator immediately and engage an independent auditor as a matter of urgency. AuditsPro can assist with urgent audit completions.
Can a real estate agent audit their own trust account?+
No. Real estate agents are legally prohibited from auditing their own trust accounts in every Australian state and territory. The audit must be conducted by a fully independent, qualified third-party auditor. Independence is a fundamental statutory requirement — the auditor must have no financial interest in the agency, no involvement in preparing the trust records, and no personal or professional relationship with the licensee that could compromise objectivity. Self-auditing constitutes a serious breach of the relevant state property licensing legislation and could result in disciplinary action or licence cancellation.
Do property managers need a trust account audit?+
Yes. Property managers who hold rental income, security bonds, or other client money in a regulated trust account are subject to the same annual audit requirements as real estate agents. In New South Wales, this obligation arises under the Property and Stock Agents Act 2002 and applies to all licensees — from sole-operator property management businesses to large agencies. In Queensland, the Agents Financial Administration Act 2014 covers property managers and resident letting agents. If your business holds trust money on behalf of landlords or clients at any point during the audit period, a trust account audit is a mandatory legal requirement. The only exception applies if no trust money was received or held during the entire period, in which case a formal no-trust declaration is generally required instead.
