The Cost of Delay: Penalties for Late Submission of Real Estate Trust Audits
Running a real estate agency is hard enough without extra drama. But if there’s one thing that can land you in hot water faster than a tenant dispute, it’s missing your trust audit deadline.
Every year, agents across Australia are fined, penalised, and even disqualified just because their audit report wasn’t submitted on time. Sounds harsh? Maybe. But it’s the law.
Let’s break down what the rules are, what’s at stake if you miss them, and how to avoid the headache (and the fine).
Key Deadlines and Submission Rules
Across most states and territories, here’s how it works:
- Audit period: 1 July to 30 June
- Lodgement deadline: By 30 September
- Lodged by: An approved auditor—not you
The report must be submitted online through the relevant portal (e.g. Auditor’s Report Online in NSW or via forms in Victoria).
No more mailing forms or dragging your feet. Miss the deadline, and the penalties start rolling in.
Some states (like Queensland and South Australia) may have slight variations, but the 30 September date is a good rule of thumb.
Penalties for Late Submission of Trust Account Audits
The penalties for late submission of your real estate trust account audit can be substantial and are designed to ensure compliance across the industry.
Fines
Late submissions can attract financial penalties ranging from $2,000 to $20,000 depending on the state or territory. For example, in New South Wales (NSW), the fine for failing to lodge an audit report on time can be as high as $22,000. Similarly, in Victoria, missing the deadline can lead to fines up to $16,000 for individuals and higher amounts for corporations.
Licence Renewal Issues
If your audit is overdue, your licence renewal may be delayed or outright rejected. In extreme cases, repeated non-compliance can lead to the suspension of your licence.
Additional Penalties
If trust account issues are found or if the audit is extremely late, further penalties may apply, including:
- Legal action and court proceedings can be initiated, which can result in significant costs.
- Trustee orders could be issued, which may require an external party to oversee the trust account management.
- Disqualification from holding a real estate licence or managing a trust account.
NSW Fair Trading's Disciplinary Action on Late Audits
Last year, NSW Fair Trading saw a 75% increase in the return of outstanding trust account audits following the initiation of the disciplinary process. This led to the following actions:
- 42 reprimands
- 8 licence cancellations
- 11 disqualifications
- 40 fines imposed, totaling over $349,000
- 12 directions imposing training conditions
These actions underscore how seriously authorities take timely audit submissions. The consequences of a late submission can be severe and have a lasting impact on your business.
Extension Requests
In some jurisdictions, you can request an extension for submission, but this is typically only granted under exceptional circumstances. Be aware that extensions are not the norm, and relying on them regularly could bring additional scrutiny to your business.
Failing to adhere to audit deadlines can seriously harm your reputation, disrupt your business operations, and cost you in both fines and lost business opportunities.
Avoiding the Drama: How to Stay Compliant
Here’s how to keep your record squeaky clean:
- Know your deadlines (set reminders in June and again in August)
- Get in early with your auditor—they’re busiest in September
- Submit zero-balance confirmations if no funds were held
- Register your trust account properly with a Unique Identifying Number (UID) if you’re in NSW
- Keep your records tidy—receipts, statements, authorisations
- Don’t delegate your responsibilities if you’re the Licensee in Charge
And one more thing—unclaimed trust money (sitting for over 2 years)? That’s got its own rules too. It must be reported and transferred to your state revenue office, not ignored. Failing to do this could cost you another $5,500+.
How Number Solutions Can Help
At Number Solutions, we get it. You didn’t sign up to be an audit expert—you signed up to sell property. That’s where we come in.
We help real estate professionals across Australia take the stress out of trust audits. Whether you’re running a busy agency or just starting out, we’ll make sure your trust account is squared away—correctly, clearly, and on time.
No confusing jargon. No last-minute rush. Just proper compliance, done right. Contact us today and let us keep your business on the safe side of the rules.
Conclusion
Submitting your trust account audit late might seem like a small slip. But the consequences? They’re anything but small.
From big fines to losing your licence, the cost of delay is just not worth it. The good news is, it’s easy to stay compliant—with the right help and a little forward planning.
So, take the deadlines seriously. Get your audit sorted early. And let us help keep your agency audit-ready, every year.
Check Our Trust Account Audit Services:
FAQ
Q: What if my audit is just a few days late?
A: Unfortunately, even a small delay can lead to penalties. Some regulators might allow for extensions in exceptional cases, but don’t count on it.
Q: Do I still need an audit if I didn’t use the trust account?
A: Not always—but you must notify the regulator and provide supporting documents (like a full-year bank statement showing no activity).
Q: Can I audit my own trust account?
A: No. The audit must be carried out by an approved, independent auditor with the proper qualifications.
Q: What happens if I’m no longer licensed but held trust money during the year?
A: You’re still required to submit a trust audit. That includes former licensees and deceased licensees’ representatives.
Q: Can I use the same auditor every year?
A: Yes! In fact, it’s encouraged. A good auditor who knows your business can save you a lot of time and hassle.
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