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Requirements for keeping, auditing and reporting trust money under the Property Agents and Land Transactions Act 2016.
The Property Agents and Land Transactions Act 2016 (the Act) and Property Agents and Land Transactions Regulations 2017 (the Regulations) set out the requirements for holding money in trust and the reporting requirements.
Under the Regulations:
In relation to the audit of trust account and associated records for compliance with Regulation 31 of the Regulations, the trust account records can be provided to your auditor in order for the audit to be completed. There should be a record of the documents taken and an agreed time-frame in which the documents should be returned.
Following concerns raised with the Board regarding the quality of a number of trust account audit reports previously received from Mr Joseph Reddy of A1 Audits Pty Ltd, 302/32 Warleigh Grove, Brighton Victoria 3168, the Board determined at its meeting on 21 June 2023 not to accept trust account audit reports from this company for a period of 5 years, including for the financial year ended 30 June 2023. After the 5-year period has lapsed, the company will be required to submit an application to the Board to request the resumption of audit activities in Tasmania, addressing the issues raised and providing assurance of professional practice.
The Board has moved to online trust account reporting to stream-line your statutory reporting obligations. All trust account reporting should be completed through the online portal — the Board team can assist you in navigating this. To see a full list of your trust accounts and complete the relevant reports, log in to your business licence through the portal.
Property agents who conduct business and have held money in trust are obliged by legislation to lodge a Trust Account Report with the Board within one month after the end of the reporting period. For example, for the reporting period 1 January – 30 June, the report is due by 31 July. A late fee of $90.16 (46 fee units) applies for late lodgement.
A property agent must, within 3 months after the end of the audit year, cause an audit to be made by an auditor of the trust accounts and accounting records. Provide your records to your auditor with sufficient time for the Special Purpose Audit and Checklist to be lodged with the Board by 30 September. A separate report and checklist is required for each trust account held. A late fee applies after the third business day following the 30 September due date.
If a property agent conducting business does not hold money in trust, Regulation 32 provides an exemption from having to lodge an audit report, provided they lodge an Exemption Declaration.
The Special Purpose Audit Report – FINAL should only be used when a business ceases to trade or when a trust account is closed.
The Regulations state that a property agent must keep trust account records at the authorised place of business. A property agent may apply to the Board to hold records at another place; the Board must provide approval in writing before the records can be kept elsewhere. Use this form to make the application.
Trust accounts may only be held with an authorised deposit-taking institution approved by the Board.