Accountant’s FAQs on Trust Account Audits
If you’re an accountant handling trust money—or even just curious about how it all works—you’re in the right place.
Trust account audits aren’t just a box-ticking exercise. They’re a legal requirement, and missing a single detail can lead to some pretty nasty consequences.
This article answers all your burning FAQs about trust account audits in Australia. We’ll walk you through the who, what, when, why and how—without the legal jargon and headache.
By the end, you’ll know exactly what you need to do to stay compliant, avoid fines, and keep your trust accounts in top shape. Let’s dive in.
What is a trust account?
A trust account is a special bank account where you hold money on behalf of someone else. You can’t touch it for personal or business use—it must only be used as instructed by the person the money belongs to.
If you’re a licensee under various Australian state laws—like the Property and Stock Agents Act 2002 (NSW) or similar in other states—you’re legally required to keep these accounts and get them audited regularly.
Who needs to get a trust account audit?
If you receive or hold trust money, you likely need a trust account audit for real estate, trust account audit for accountants, trust account audit for solicitors, or a trust account audit for conveyancers.
This includes:
Real estate agents
Accountants
Solicitors
Conveyancers
Travel agents (in some states)
Even if you didn’t do much with the account (or anything at all), you might still need to submit something.
Here’s the rule of thumb:
If the trust account had any transactions or money during the year, you need a full audit.
If it had zero activity but was open, you still need to report that—just with a bank statement showing the inactivity.
When is the audit due?
Across most Australian states, the audit period ends on 30 June each year. That gives you until 30 September to get your audit done and submitted.
No extensions. No excuses. Miss it, and you could face fines or even lose your licence.
What if I didn’t hold any trust money?
Good question.
If you had a trust account open, but didn’t actually hold or receive any money, you still need to do something.
In New South Wales, for instance, you’ll have to email Fair Trading with your full-year bank statement showing a zero balance and no transactions. Other states have similar rules.
Not doing this can still land you in trouble—yep, even if you “didn’t do anything.”
Who can audit a trust account?
Only someone qualified can audit your trust account. That means:
- A registered company auditor
- A member of a Professional Accounting Body with a Public Practice Certificate
Your cousin who does “a bit of accounting on the side” doesn’t count. And neither does your office manager—even if they’re great with spreadsheets.
Also, your auditor can’t be you, your employee, or your business partner. And if your company has fewer than 20 shareholders, the auditor can’t hold shares in it.
What do auditors look for?
An auditor checks that:
- You’re holding trust money correctly
- All transactions are recorded accurately
- There’s no misuse, fraud, or errors
- You’re following your state’s rules around withdrawals, deposits, and account naming
They’ll also look at whether your account was kept at an approved bank (called an Authorised Deposit-taking Institution or ADI), and whether you provided all required notices and forms.
Do I need a unique ID number for the account?
Yes—at least in New South Wales and some other states.
This UID (unique identifying number) links your trust account to the government system. When you open a new trust account, you need to apply for this number and give it to your bank. Your bank then uses it for monthly reporting.
If your trust account was opened before 31 December 2014 in NSW, you still need to register it and get a UID.
What if I need to close a trust account?
There are forms for that. Of course.
You must notify your state authority (like NSW Fair Trading) within 14 days of closing a trust account.
And yes, you’ll need to submit proof and keep a copy for your records. This includes scanned forms and account closure confirmation notices.
What about unclaimed trust money?
If you’ve held someone’s money in trust for over 2 years, and you can’t find them, that’s considered unclaimed money.
In NSW and many other states, this needs to be sent to Revenue NSW (or the equivalent agency in your state).
You’ll need to show you made a “reasonable effort” to find the rightful owner.
And failing to report or pay it over? That could cost you over $5,000 in fines.
Can I be exempt from an audit?
Sometimes. For example:
- If the trust account was open but had no transactions and a $0 balance all year
- If you didn’t hold any trust money during the audit period
- Or if the trust account was for the exclusive benefit of a single client or strata plan (in specific scenarios)
But don’t assume you’re exempt—check with your state’s regulations or an experienced accountant before skipping the audit.
What happens if I miss the audit deadline?
Honestly, don’t risk it.
Missing the deadline can lead to:
- Fines
- Disqualification from renewing your licence
- Formal disciplinary action
- Long-term damage to your business reputation
The due date isn’t flexible, and once 30 September passes, it’s too late.
How Number Solutions Can Help You
At Number Solutions, we know the stress trust account audits can bring—especially if you’re juggling 20 other things. That’s why we offer expert help for accountants, real estate agents, and business owners across Australia.
Whether you need:
- Help preparing your books
- A licensed auditor you can trust
- Guidance on what to lodge and when
We’ve got your back. We handle it all—so you don’t have to worry about missing a step. Contact us today and make sure your next audit is hassle-free.
Conclusion
Trust account audits are more than just red tape—they’re about protecting your clients and keeping your business compliant.
From deadlines to documentation, approved banks to audit rules, it can feel like a maze. But with the right info and support (hi again, that’s us!), you can stay on top of it all without breaking a sweat.
So take a deep breath, bookmark this page, and tick one more worry off your list.
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