Real estate trust accounts by state: NSW, Vic and Qld audit and reconciliation

Trust account obligations by state

Real estate trust account obligations vary slightly across New South Wales, Victoria, and Queensland. In New South Wales, licensees operating under the Property and Stock Agents Act 2002 are required to hold clients’ funds in an approved trust account. Victoria mandates that estate agents who receive money on behalf of others maintain trust accounts, as outlined in section 64 of the Estate Agents Act 1980. Queensland agents holding trust money must adhere to the Agents Financial Administration Act 2014 (Qld), overseen by the Office of Fair Trading.

A consistent requirement across all states is that trust money must be held in an authorised financial institution (ADI) within a trust account specifically designated for that purpose. Failure to adhere to these requirements can expose agents to potential liability, including breaches of the ACL misleading and deceptive conduct (s18, s29).

Statutory interest earned on trust money is paid to the relevant Property Services Compensation Fund or equivalent in each state. This ensures funds are available to compensate clients in cases of fraud or mishandling.

Monthly bank reconciliation rules

Monthly trust account reconciliations are a mandatory requirement across New South Wales, Victoria, and Queensland. These reconciliations involve a direct comparison of the trust journal balance with the corresponding bank statement balance. This process ensures the accuracy of trust account records and helps identify any discrepancies. ACL consumer guarantees apply to consumer-related transactions handled through trust accounts.

In Victoria, regulation 26 of the Estate Agents (General, Accounts and Audit) Regulations 2018 specifically mandates the completion of a trust reconciliation statement at the end of each month. New South Wales requires that monthly reconciliation reports be formally signed by both the individual who prepares the reconciliation and a designated reviewer.

The timeframe for completing these reconciliations generally falls within 15 to 21 working days following the end of the month. Following completion, all supporting documentation must be retained for a minimum of seven years, as required by most jurisdictions.

Annual audit and lodgement deadlines

Annual audit and lodgement deadlines vary by state. In New South Wales, the audit period concludes on 30 June each year. The audit report must then be lodged with NSW Fair Trading by 30 September, which is three months following the end of the audit period. Unfair contract terms 2026 penalties

Victoria requires estate agents to lodge their audit report with Consumer Affairs Victoria via myCAV within 10 business days of receiving the audit report, typically by 30 September. The audit period in Victoria also ends on 30 June. Auditors must be a registered company auditor (under the Corporations Act 2001) or a qualified accountant approved under state law.

Queensland’s audit period is linked to the agent’s licence-issue month, rather than 30 June. Agents have four months from the end of their audit period to lodge the audit report. Audit reports must specifically identify any trust account discrepancies, deficiencies or breaches.

Penalties and Property Services Compensation Funds

Each state maintains a statutory compensation fund – the NSW Property Services Compensation Fund, the Victorian Estate Agents' Fidelity Fund, and the Queensland Claim Fund – to provide compensation to consumers in cases of trust account defalcations. These funds offer a level of consumer protection should a licensee fail to properly manage trust account funds.

Failure to comply with trust account legislation, including maintaining a trust account and lodging required audits, can result in significant penalties. These may include licence suspension or cancellation, alongside financial penalties. Trust account dishonesty offences can also be prosecuted as fraud under relevant state legislation, such as the *Crimes Act 1900* (NSW), *Crimes Act 1958* (Vic), or the *Criminal Code Act 1899* (Qld), and may also constitute ACL misleading and deceptive conduct (s18, s29).

Claims against the statutory compensation funds are subject to time limits. Generally, claims must be filed within a specific timeframe from the date of discovery, for example, 12 months. Real Estate Institutes, including REIA, REINSW, REIV, and REIQ, provide best-practice trust accounting standards to assist licensees in meeting their legislative obligations.