This regulation prescribes how licensed principal agents must handle trust money: the exact books, receipt and deposit forms, ledger and journal entries, monthly reconciliations, audit-ready recordkeeping, retention periods and limits on transfers. It also sets controls for computerised accounting systems, backup and hard-copy requirements, penalties for non-compliance and caps on claims against the compensation fund. It affects principal agents who hold client trust funds (for example, property and motor-dealer agents) because it dictates operational procedures, evidentiary obligations and compliance costs.
This regulation prescribes detailed administrative and record-keeping requirements for principal agents who hold and deal with trust money under the Agents Financial Administration Act 2014 (the Act). It sets out the precise books, accounts and records that must be kept (s 3), how those records must be maintained when a computerised accounting system is used (s 4), the content and handling of trust account receipt and deposit forms (ss 6-12), the particulars required for payments by cheque and electronic funds transfer (ss 13-14), detailed requirements for trust account cash books, ledger accounts and monthly reconciliations (ss 15-21, 17-18), the permitted use of journal transfers (s 22), and rules that apply on transfer of business or partnership changes (s 23). It also prescribes document retention and electronic backup rules (ss 26-27), sets a specific fee for inspection of the register of undertakings (s 24), and fixes caps on recoveries from the compensation fund (s 25). Transitional provisions carry over certain record obligations from the repealed Property Agents and Motor Dealers Regulation 2001 (pts 6, ss 29-31). The regulation commenced on 1 December 2014 (s 2).
Mechanically, the instrument converts broad statutory duties in the Act into operational duties and timelines: immediate or two-business-day time limits for receipt and ledger entries (ss 8, 15, 21), five-business-day monthly deadlines for reconciliations and hard-copy production (ss 4(4), 17), weekly obligations to obtain transaction reports for electronic deposits (s 12), and recurring monthly backup and off-site storage requirements for electronic records (s 27). Many contraventions attract a uniform maximum sanction of 10 penalty units (appearing across provisions such as ss 3, 4, 8, 10-12, 15-17, 19-22, 26-27). The regulation also supplements the Act’s compensation fund provisions by limiting recoveries and aggregate payments in particular circumstances (s 25).
Current sections
Direct links to the current provisions in Agents Financial Administration Regulation 2014.
45
pt.1
Preliminary
Preliminary
sec.1
Short title
sec.1 Short title
This regulation may be cited as the Agents Financial Administration Regulation 2014 .
sec.2
Commencement
sec.2 Commencement
This regulation commences on 1 December 2014.
sec.2A
Definitions
sec.2A Definitions
In this regulation—
bill includes a rental bond.
bill payment platform means an electronic system for the transfer of funds that is used for the payment of a bill.
s 2A ins 2021 SL No. 170 s 3
pt.2
Administration of trust accounts
Administration of trust accounts
pt.2-div.1
Trust account records
Trust account records
sec.3
Principal agent must keep particular books, accounts and records
sec.3 Principal agent must keep particular books, accounts and records
A principal agent must keep the following books, accounts and records—
a register of trust account receipt forms;
consecutively numbered trust account receipt forms in duplicate;
trust account deposit forms in duplicate;
a trust account cash book;
a trust account ledger;
a trust account journal with journal pages or entries consecutively numbered;
full and accurate accounts of amounts paid or received for a sale or transaction.
Maximum penalty—10 penalty units.
The books, accounts and records mentioned in subsection (1) must be kept in a way that can be properly audited.
Maximum penalty—10 penalty units.
(sec.3-ssec.1) A principal agent must keep the following books, accounts and records— a register of trust account receipt forms; consecutively numbered trust account receipt forms in duplicate; trust account deposit forms in duplicate; a trust account cash book; a trust account ledger; a trust account journal with journal pages or entries consecutively numbered; full and accurate accounts of amounts paid or received for a sale or transaction. Maximum penalty—10 penalty units.
(sec.3-ssec.2) The books, accounts and records mentioned in subsection (1) must be kept in a way that can be properly audited. Maximum penalty—10 penalty units.
(a) a register of trust account receipt forms;
(b) consecutively numbered trust account receipt forms in duplicate;
(c) trust account deposit forms in duplicate;
(d) a trust account cash book;
(e) a trust account ledger;
(f) a trust account journal with journal pages or entries consecutively numbered;
(g) full and accurate accounts of amounts paid or received for a sale or transaction.
sec.4
Using software to keep books, accounts and records
sec.4 Using software to keep books, accounts and records
This section applies if a principal agent uses a computerised accounting system (the system ) in connection with keeping books, accounts and records mentioned in section 3 (1) .
The principal agent must ensure that—
the system does not allow the deletion of a trust ledger account unless—
the account has a zero balance; and
a record of the account, as it was immediately before its deletion, is kept; and
an amendment of the particulars of a transaction recorded on the system is made by a separate transaction recorded on the system; and
any record of information produced by the system is produced in chronological sequence.
Maximum penalty—10 penalty units.
Also, the principal agent may use the system only if the system is capable of keeping in chronological sequence, a record of any change to the following information—
the name and address of a person for whom trust money is held;
the description of a matter being conducted by the principal agent;
the amount of trust money held for a person by the principal agent;
the financial institution account number of a trust account.
The principal agent must, within 5 business days after the end of the month, make a hard copy of the following information—
if the agent uses the system to keep a trust ledger account—the balance of the trust ledger account;
if the agent uses the system to prepare a trust account cash book reconciliation—the reconciliation completed under section 17 (1) (a) ;
if the agent uses the system to reconcile a trust account financial institution statement balance with the trust account cash book balance—the reconciliation completed under section 17 (1) (b) .
Maximum penalty—10 penalty units.
If the principal agent uses the system to keep a trust account ledger, the principal agent must immediately before a trust ledger account or investment ledger account is deleted from the system—
make a hard copy of the ledger account; and
keep the hard copy in the principal agent’s records.
Maximum penalty—10 penalty units.
(sec.4-ssec.1) This section applies if a principal agent uses a computerised accounting system (the system ) in connection with keeping books, accounts and records mentioned in section 3 (1) .
(sec.4-ssec.2) The principal agent must ensure that— the system does not allow the deletion of a trust ledger account unless— the account has a zero balance; and a record of the account, as it was immediately before its deletion, is kept; and an amendment of the particulars of a transaction recorded on the system is made by a separate transaction recorded on the system; and any record of information produced by the system is produced in chronological sequence. Maximum penalty—10 penalty units.
(sec.4-ssec.3) Also, the principal agent may use the system only if the system is capable of keeping in chronological sequence, a record of any change to the following information— the name and address of a person for whom trust money is held; the description of a matter being conducted by the principal agent; the amount of trust money held for a person by the principal agent; the financial institution account number of a trust account.
(sec.4-ssec.4) The principal agent must, within 5 business days after the end of the month, make a hard copy of the following information— if the agent uses the system to keep a trust ledger account—the balance of the trust ledger account; if the agent uses the system to prepare a trust account cash book reconciliation—the reconciliation completed under section 17 (1) (a) ; if the agent uses the system to reconcile a trust account financial institution statement balance with the trust account cash book balance—the reconciliation completed under section 17 (1) (b) . Maximum penalty—10 penalty units.
(sec.4-ssec.5) If the principal agent uses the system to keep a trust account ledger, the principal agent must immediately before a trust ledger account or investment ledger account is deleted from the system— make a hard copy of the ledger account; and keep the hard copy in the principal agent’s records. Maximum penalty—10 penalty units.
(a) the system does not allow the deletion of a trust ledger account unless— (i) the account has a zero balance; and (ii) a record of the account, as it was immediately before its deletion, is kept; and
(i) the account has a zero balance; and
(ii) a record of the account, as it was immediately before its deletion, is kept; and
(b) an amendment of the particulars of a transaction recorded on the system is made by a separate transaction recorded on the system; and
(c) any record of information produced by the system is produced in chronological sequence.
(i) the account has a zero balance; and
(ii) a record of the account, as it was immediately before its deletion, is kept; and
(a) the name and address of a person for whom trust money is held;
(b) the description of a matter being conducted by the principal agent;
(c) the amount of trust money held for a person by the principal agent;
(d) the financial institution account number of a trust account.
(a) if the agent uses the system to keep a trust ledger account—the balance of the trust ledger account;
(b) if the agent uses the system to prepare a trust account cash book reconciliation—the reconciliation completed under section 17 (1) (a) ;
(c) if the agent uses the system to reconcile a trust account financial institution statement balance with the trust account cash book balance—the reconciliation completed under section 17 (1) (b) .
(a) make a hard copy of the ledger account; and
(b) keep the hard copy in the principal agent’s records.
sec.5
Entries in books, accounts and records
sec.5 Entries in books, accounts and records
A principal agent must not enter in any book, account or record kept under the Act any particular that is not a particular relating to the agent carrying on a business as an agent.
Maximum penalty—10 penalty units.
pt.2-div.2
Trust account receipts and deposits
Trust account receipts and deposits
sec.6
Register of trust account receipt forms
sec.6 Register of trust account receipt forms
A register of trust account receipt forms must—
contain a record of the receipt number of each receipt form held by the principal agent; and
be updated within 2 business days of a trust account receipt form being brought into use for the operation of a trust account.
(a) contain a record of the receipt number of each receipt form held by the principal agent; and
(b) be updated within 2 business days of a trust account receipt form being brought into use for the operation of a trust account.
sec.7
Heading on trust account receipt forms
sec.7 Heading on trust account receipt forms
Each trust account receipt form must be—
clearly headed ‘Agents Financial Administration Act 2014 Trust Account Receipt’; and
consecutively and uniquely numbered.
A duplicate trust account receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
(sec.7-ssec.1) Each trust account receipt form must be— clearly headed ‘Agents Financial Administration Act 2014 Trust Account Receipt’; and consecutively and uniquely numbered.
(sec.7-ssec.2) A duplicate trust account receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
Obligation to complete a trust account receipt form
sec.8 Obligation to complete a trust account receipt form
A principal agent must complete a trust account receipt form—
if a principal agent receives trust money by direct deposit or electronic funds transfer—on the day the principal agent becomes aware of the receipt of the trust money; or
otherwise—immediately on receiving the trust money.
Maximum penalty—10 penalty units.
(a) if a principal agent receives trust money by direct deposit or electronic funds transfer—on the day the principal agent becomes aware of the receipt of the trust money; or
(b) otherwise—immediately on receiving the trust money.
sec.9
Completed trust account receipt form to contain particular information
sec.9 Completed trust account receipt form to contain particular information
Each trust account receipt form must contain the following particulars—
the name of the principal agent on whose behalf the receipt is completed;
the agent’s licence number;
the date—
the trust money was received; and
the receipt is completed;
the name of the person completing the receipt form and, if the receipt form is from a receipt book or is a hard copy of a computer entry, the person’s signature;
the name of the person for whom the receipt is completed;
the name of, or other means of identifying, the person on whose behalf the trust money is received;
using a code to identify the person, for example, S4 stands for N. Smith
a brief description of the matter for which the trust money is received;
the amount of trust money received, expressed in figures;
how the trust money was received, for example, in cash, by cheque, by direct deposit or by electronic funds transfer;
if the trust money received is rent—
the address of the rented premises; and
the day up to which the rent is paid;
if the trust money received is payment from a prospective buyer for an option to purchase a used motor vehicle for sale on consignment, the vehicle’s—
make; and
body model; and
colour; and
engine number or, if the vehicle is a caravan, the chassis number; and
identification number; and
registration number; and
built date.
In this section—
built date see the Motor Dealers and Chattel Auctioneers Act 2014 , schedule 1 , section 3C .
s 9 amd 2021 SL No. 170 s 4
(sec.9-ssec.1) Each trust account receipt form must contain the following particulars— the name of the principal agent on whose behalf the receipt is completed; the agent’s licence number; the date— the trust money was received; and the receipt is completed; the name of the person completing the receipt form and, if the receipt form is from a receipt book or is a hard copy of a computer entry, the person’s signature; the name of the person for whom the receipt is completed; the name of, or other means of identifying, the person on whose behalf the trust money is received; using a code to identify the person, for example, S4 stands for N. Smith a brief description of the matter for which the trust money is received; the amount of trust money received, expressed in figures; how the trust money was received, for example, in cash, by cheque, by direct deposit or by electronic funds transfer; if the trust money received is rent— the address of the rented premises; and the day up to which the rent is paid; if the trust money received is payment from a prospective buyer for an option to purchase a used motor vehicle for sale on consignment, the vehicle’s— make; and body model; and colour; and engine number or, if the vehicle is a caravan, the chassis number; and identification number; and registration number; and built date.
(sec.9-ssec.2) In this section— built date see the Motor Dealers and Chattel Auctioneers Act 2014 , schedule 1 , section 3C .
(a) the name of the principal agent on whose behalf the receipt is completed;
(b) the agent’s licence number;
(c) the date— (i) the trust money was received; and (ii) the receipt is completed;
(i) the trust money was received; and
(ii) the receipt is completed;
(d) the name of the person completing the receipt form and, if the receipt form is from a receipt book or is a hard copy of a computer entry, the person’s signature;
(e) the name of the person for whom the receipt is completed;
(f) the name of, or other means of identifying, the person on whose behalf the trust money is received; Example of a way by which the name of a person can be identified— using a code to identify the person, for example, S4 stands for N. Smith
(g) a brief description of the matter for which the trust money is received;
(h) the amount of trust money received, expressed in figures;
(i) how the trust money was received, for example, in cash, by cheque, by direct deposit or by electronic funds transfer;
(j) if the trust money received is rent— (i) the address of the rented premises; and (ii) the day up to which the rent is paid;
(i) the address of the rented premises; and
(ii) the day up to which the rent is paid;
(k) if the trust money received is payment from a prospective buyer for an option to purchase a used motor vehicle for sale on consignment, the vehicle’s— (i) make; and (ii) body model; and (iii) colour; and (iv) engine number or, if the vehicle is a caravan, the chassis number; and (v) identification number; and (vi) registration number; and (vii) built date.
(i) make; and
(ii) body model; and
(iii) colour; and
(iv) engine number or, if the vehicle is a caravan, the chassis number; and
(v) identification number; and
(vi) registration number; and
(vii) built date.
(i) the trust money was received; and
(ii) the receipt is completed;
(i) the address of the rented premises; and
(ii) the day up to which the rent is paid;
(i) make; and
(ii) body model; and
(iii) colour; and
(iv) engine number or, if the vehicle is a caravan, the chassis number; and
(v) identification number; and
(vi) registration number; and
(vii) built date.
sec.10
Dealing with trust account receipt forms
sec.10 Dealing with trust account receipt forms
The principal agent must ensure—
a trust account receipt form contains the particulars mentioned in section 9 ; and
a trust account receipt form is used only for the receipt of—
trust money; or
an amount consisting of trust money and other money that cannot be divided; and
if requested by the person from whom the trust money was received—a trust account receipt form is given to the person promptly; and
a completed and legible duplicate trust account receipt form is kept in the principal agent’s records; and
if the principal agent cancels a trust account receipt form, the form—
is kept in the principal agent’s records; and
contains a brief description of why the form was cancelled.
Maximum penalty—10 penalty units.
(a) a trust account receipt form contains the particulars mentioned in section 9 ; and
(b) a trust account receipt form is used only for the receipt of— (i) trust money; or (ii) an amount consisting of trust money and other money that cannot be divided; and
(i) trust money; or
(ii) an amount consisting of trust money and other money that cannot be divided; and
(c) if requested by the person from whom the trust money was received—a trust account receipt form is given to the person promptly; and
(d) a completed and legible duplicate trust account receipt form is kept in the principal agent’s records; and
(e) if the principal agent cancels a trust account receipt form, the form— (i) is kept in the principal agent’s records; and (ii) contains a brief description of why the form was cancelled.
(i) is kept in the principal agent’s records; and
(ii) contains a brief description of why the form was cancelled.
(i) trust money; or
(ii) an amount consisting of trust money and other money that cannot be divided; and
(i) is kept in the principal agent’s records; and
(ii) contains a brief description of why the form was cancelled.
sec.11
Completed trust account deposit forms to contain particular information
sec.11 Completed trust account deposit forms to contain particular information
A principal agent must ensure that each trust account deposit form contains the following particulars—
the name and account number of the trust account into which the trust money is deposited;
the amount and date of the deposit;
the signature of the depositor;
if the deposit includes a cheque—
the name of the drawer of the cheque; and
the name and branch of the financial institution against which the cheque is drawn.
Maximum penalty—10 penalty units.
(a) the name and account number of the trust account into which the trust money is deposited;
(b) the amount and date of the deposit;
(c) the signature of the depositor;
(d) if the deposit includes a cheque— (i) the name of the drawer of the cheque; and (ii) the name and branch of the financial institution against which the cheque is drawn.
(i) the name of the drawer of the cheque; and
(ii) the name and branch of the financial institution against which the cheque is drawn.
(i) the name of the drawer of the cheque; and
(ii) the name and branch of the financial institution against which the cheque is drawn.
sec.12
Depositing trust money
sec.12 Depositing trust money
If trust money is deposited into a principal agent’s trust account, the principal agent must—
if the deposit is made by electronic funds transfer—
obtain, at least once each week, a transaction report statement from the financial institution into which the trust money is paid showing deposits made into the trust account; and
ensure the statement is kept in the principal agent’s records; and
otherwise—ensure a copy of the trust account deposit form is kept in the principal agent’s records.
Maximum penalty—10 penalty units.
(a) if the deposit is made by electronic funds transfer— (i) obtain, at least once each week, a transaction report statement from the financial institution into which the trust money is paid showing deposits made into the trust account; and (ii) ensure the statement is kept in the principal agent’s records; and
(i) obtain, at least once each week, a transaction report statement from the financial institution into which the trust money is paid showing deposits made into the trust account; and
(ii) ensure the statement is kept in the principal agent’s records; and
(b) otherwise—ensure a copy of the trust account deposit form is kept in the principal agent’s records.
(i) obtain, at least once each week, a transaction report statement from the financial institution into which the trust money is paid showing deposits made into the trust account; and
(ii) ensure the statement is kept in the principal agent’s records; and
pt.2-div.3
Trust account payments
Trust account payments
sec.13
Payments by cheque
sec.13 Payments by cheque
This section applies if the principal agent draws a cheque against a trust account kept by the principal agent under the Act .
The principal agent must ensure the following particulars are written on the cheque butt or another document—
the date the cheque is drawn;
the name of the person to whom the cheque is payable;
the name of the person on whose behalf the cheque is drawn;
a brief description of the matter for which the cheque is drawn;
the amount for which the cheque is drawn.
Maximum penalty—10 penalty units.
A principal agent must keep each cheque butt or other document containing the particulars mentioned in subsection (2) in the principal agent’s records.
a cheque requisition form
Maximum penalty—10 penalty units.
(sec.13-ssec.1) This section applies if the principal agent draws a cheque against a trust account kept by the principal agent under the Act .
(sec.13-ssec.2) The principal agent must ensure the following particulars are written on the cheque butt or another document— the date the cheque is drawn; the name of the person to whom the cheque is payable; the name of the person on whose behalf the cheque is drawn; a brief description of the matter for which the cheque is drawn; the amount for which the cheque is drawn. Maximum penalty—10 penalty units.
(sec.13-ssec.3) A principal agent must keep each cheque butt or other document containing the particulars mentioned in subsection (2) in the principal agent’s records. a cheque requisition form Maximum penalty—10 penalty units.
(a) the date the cheque is drawn;
(b) the name of the person to whom the cheque is payable;
(c) the name of the person on whose behalf the cheque is drawn;
(d) a brief description of the matter for which the cheque is drawn;
(e) the amount for which the cheque is drawn.
sec.14
Payments by electronic funds transfer
sec.14 Payments by electronic funds transfer
This section applies if the principal agent pays trust money by electronic funds transfer.
The principal agent must keep a transaction report statement from the financial institution at which the trust account is held containing the following particulars—
the date of the payment;
the amount of the payment;
if the trust money is paid using a bill payment platform without stating an account number to which it is paid—
the name of the person to whom the money is paid; and
the name of the bill payment platform; and
the unique transaction reference for the payment;
if paragraph (c) does not apply—the account name and number to which the money is paid.
Maximum penalty—10 penalty units.
A principal agent must keep each transaction report statement containing the particulars mentioned in subsection (2) in the agent’s records.
Maximum penalty—10 penalty units.
s 14 amd 2021 SL No. 170 s 5
(sec.14-ssec.1) This section applies if the principal agent pays trust money by electronic funds transfer.
(sec.14-ssec.2) The principal agent must keep a transaction report statement from the financial institution at which the trust account is held containing the following particulars— the date of the payment; the amount of the payment; if the trust money is paid using a bill payment platform without stating an account number to which it is paid— the name of the person to whom the money is paid; and the name of the bill payment platform; and the unique transaction reference for the payment; if paragraph (c) does not apply—the account name and number to which the money is paid. Maximum penalty—10 penalty units.
(sec.14-ssec.3) A principal agent must keep each transaction report statement containing the particulars mentioned in subsection (2) in the agent’s records. Maximum penalty—10 penalty units.
(a) the date of the payment;
(b) the amount of the payment;
(c) if the trust money is paid using a bill payment platform without stating an account number to which it is paid— (i) the name of the person to whom the money is paid; and (ii) the name of the bill payment platform; and (iii) the unique transaction reference for the payment;
(i) the name of the person to whom the money is paid; and
(ii) the name of the bill payment platform; and
(iii) the unique transaction reference for the payment;
(d) if paragraph (c) does not apply—the account name and number to which the money is paid.
(i) the name of the person to whom the money is paid; and
(ii) the name of the bill payment platform; and
(iii) the unique transaction reference for the payment;
pt.2-div.4
Trust account cash books
Trust account cash books
sec.15
Trust account cash book—trust money received
sec.15 Trust account cash book—trust money received
This section applies if the principal agent receives trust money from a person.
The principal agent must, within 2 business days after trust money is received, or if the trust money is received by electronic funds transfer, on the day the principal agent becomes aware of the receipt of the trust money, enter the following particulars in the trust account cash book—
the date the trust money is received;
if a trust account receipt is completed on a date that is different from the date mentioned in paragraph (a) , the date the receipt is completed;
the name of the person from whom the trust money is received;
the name of, or other means of identifying, the person on whose behalf the trust money is received;
using a code to identify the person, for example, S4 stands for N. Smith
a brief description of the matter for which the trust money is received;
the amount received;
the trust account receipt number;
the date the trust money is paid into the agent’s trust account maintained at the financial institution where the general trust account is kept.
Maximum penalty—10 penalty units.
The entries containing the particulars mentioned in subsection (2) must be recorded in the order in which the receipts are made out.
Maximum penalty—10 penalty units.
(sec.15-ssec.1) This section applies if the principal agent receives trust money from a person.
(sec.15-ssec.2) The principal agent must, within 2 business days after trust money is received, or if the trust money is received by electronic funds transfer, on the day the principal agent becomes aware of the receipt of the trust money, enter the following particulars in the trust account cash book— the date the trust money is received; if a trust account receipt is completed on a date that is different from the date mentioned in paragraph (a) , the date the receipt is completed; the name of the person from whom the trust money is received; the name of, or other means of identifying, the person on whose behalf the trust money is received; using a code to identify the person, for example, S4 stands for N. Smith a brief description of the matter for which the trust money is received; the amount received; the trust account receipt number; the date the trust money is paid into the agent’s trust account maintained at the financial institution where the general trust account is kept. Maximum penalty—10 penalty units.
(sec.15-ssec.3) The entries containing the particulars mentioned in subsection (2) must be recorded in the order in which the receipts are made out. Maximum penalty—10 penalty units.
(a) the date the trust money is received;
(b) if a trust account receipt is completed on a date that is different from the date mentioned in paragraph (a) , the date the receipt is completed;
(c) the name of the person from whom the trust money is received;
(d) the name of, or other means of identifying, the person on whose behalf the trust money is received; Example of a way by which the name of a person can be identified— using a code to identify the person, for example, S4 stands for N. Smith
(e) a brief description of the matter for which the trust money is received;
(f) the amount received;
(g) the trust account receipt number;
(h) the date the trust money is paid into the agent’s trust account maintained at the financial institution where the general trust account is kept.
sec.16
Trust account cash book—trust money paid
sec.16 Trust account cash book—trust money paid
This section applies if the principal agent pays trust money to a person.
If the principal agents pays trust money by cheque, the agent must, within 2 business days after the payment, enter the following particulars in the trust account cash book—
the date the cheque is written;
the amount paid;
the cheque number;
the name of the person to whom the payment is made;
the name of, or other means of identifying, the person on whose behalf the payment is made;
using a code to identify the person, for example, S4 stands for N. Smith
a brief description of the matter for which the money is paid;
details identifying the ledger account to be debited.
If the principal agent pays trust money by electronic funds transfer, the agent must, within 2 business days after the payment, enter the following particulars in the trust account cash book—
the date the money is paid;
the amount paid;
if the trust money is paid using a bill payment platform without stating an account number to which it is paid—
the name of the person to whom the money is paid; and
the name of the bill payment platform; and
the unique transaction reference for the payment;
if paragraph (c) does not apply—
the name of the holder of the account to which the money is paid; and
the identifying number of the financial institution and account number of the account to which the money is paid; and
the unique transaction reference for the payment;
the name of, or other means of identifying, the person on whose behalf the payment is made;
using a code to identify the person, for example, S4 stands for N. Smith
a brief description of the matter for which the money is paid;
details identifying the ledger account to be debited.
Maximum penalty—10 penalty units.
s 16 amd 2021 SL No. 170 s 6
(sec.16-ssec.1) This section applies if the principal agent pays trust money to a person.
(sec.16-ssec.2) If the principal agents pays trust money by cheque, the agent must, within 2 business days after the payment, enter the following particulars in the trust account cash book— the date the cheque is written; the amount paid; the cheque number; the name of the person to whom the payment is made; the name of, or other means of identifying, the person on whose behalf the payment is made; using a code to identify the person, for example, S4 stands for N. Smith a brief description of the matter for which the money is paid; details identifying the ledger account to be debited.
(sec.16-ssec.3) If the principal agent pays trust money by electronic funds transfer, the agent must, within 2 business days after the payment, enter the following particulars in the trust account cash book— the date the money is paid; the amount paid; if the trust money is paid using a bill payment platform without stating an account number to which it is paid— the name of the person to whom the money is paid; and the name of the bill payment platform; and the unique transaction reference for the payment; if paragraph (c) does not apply— the name of the holder of the account to which the money is paid; and the identifying number of the financial institution and account number of the account to which the money is paid; and the unique transaction reference for the payment; the name of, or other means of identifying, the person on whose behalf the payment is made; using a code to identify the person, for example, S4 stands for N. Smith a brief description of the matter for which the money is paid; details identifying the ledger account to be debited. Maximum penalty—10 penalty units.
(a) the date the cheque is written;
(b) the amount paid;
(c) the cheque number;
(d) the name of the person to whom the payment is made;
(e) the name of, or other means of identifying, the person on whose behalf the payment is made; Example of a way by which the name of a person can be identified— using a code to identify the person, for example, S4 stands for N. Smith
(f) a brief description of the matter for which the money is paid;
(g) details identifying the ledger account to be debited.
(a) the date the money is paid;
(b) the amount paid;
(c) if the trust money is paid using a bill payment platform without stating an account number to which it is paid— (i) the name of the person to whom the money is paid; and (ii) the name of the bill payment platform; and (iii) the unique transaction reference for the payment;
(i) the name of the person to whom the money is paid; and
(ii) the name of the bill payment platform; and
(iii) the unique transaction reference for the payment;
(d) if paragraph (c) does not apply— (i) the name of the holder of the account to which the money is paid; and (ii) the identifying number of the financial institution and account number of the account to which the money is paid; and (iii) the unique transaction reference for the payment;
(i) the name of the holder of the account to which the money is paid; and
(ii) the identifying number of the financial institution and account number of the account to which the money is paid; and
(iii) the unique transaction reference for the payment;
(e) the name of, or other means of identifying, the person on whose behalf the payment is made; Example of a way by which the name of a person can be identified— using a code to identify the person, for example, S4 stands for N. Smith
(f) a brief description of the matter for which the money is paid;
(g) details identifying the ledger account to be debited.
(i) the name of the person to whom the money is paid; and
(ii) the name of the bill payment platform; and
(iii) the unique transaction reference for the payment;
(i) the name of the holder of the account to which the money is paid; and
(ii) the identifying number of the financial institution and account number of the account to which the money is paid; and
(iii) the unique transaction reference for the payment;
sec.17
Trust account cash book reconciliation
sec.17 Trust account cash book reconciliation
A principal agent must, within 5 business days after the end of each month—
reconcile the trust account cash book balance as at the end of the month with the trust account ledger balances that show—
each trust account creditor’s name; and
the amount held on behalf of the creditor as at the end of the month; and
reconcile the financial institution’s statement balance for the principal agent’s trust account as at the end of the month with the trust account cash book balance as at the end of the month.
Maximum penalty—10 penalty units.
The principal agent must keep each reconciliation completed under this section in the principal agent’s records.
Maximum penalty—10 penalty units.
(sec.17-ssec.1) A principal agent must, within 5 business days after the end of each month— reconcile the trust account cash book balance as at the end of the month with the trust account ledger balances that show— each trust account creditor’s name; and the amount held on behalf of the creditor as at the end of the month; and reconcile the financial institution’s statement balance for the principal agent’s trust account as at the end of the month with the trust account cash book balance as at the end of the month. Maximum penalty—10 penalty units.
(sec.17-ssec.2) The principal agent must keep each reconciliation completed under this section in the principal agent’s records. Maximum penalty—10 penalty units.
(a) reconcile the trust account cash book balance as at the end of the month with the trust account ledger balances that show— (i) each trust account creditor’s name; and (ii) the amount held on behalf of the creditor as at the end of the month; and
(i) each trust account creditor’s name; and
(ii) the amount held on behalf of the creditor as at the end of the month; and
(b) reconcile the financial institution’s statement balance for the principal agent’s trust account as at the end of the month with the trust account cash book balance as at the end of the month.
(i) each trust account creditor’s name; and
(ii) the amount held on behalf of the creditor as at the end of the month; and
sec.18
Trust account cash book reconciliation details
sec.18 Trust account cash book reconciliation details
A reconciliation under section 17 (1) (b) must contain the following details—
the balance as at the end of the month shown on the financial institution’s statement for the principal agent’s trust account;
the amount of trust money on hand as at the end of the month and the date the money was received;
for each outstanding deposit as at the end of the month—
the amount of the outstanding deposit; and
the date the outstanding deposit was received; and
the date the amount was deposited;
details, including the amount, of any electronic funds transfer deposits recorded on the financial institution statement but not entered in the trust account cash book as at the end of the month;
details of any outstanding cheques, including, for each cheque—
the cheque number; and
the amount of the cheque; and
the date of the cheque;
the balance of the trust account as at the end of the month shown in the trust account cash book.
For a reconciliation under section 17 (1) (b) , the principal agent must reconcile the trust account cash book balance as at the end of the month with the amount obtained by—
adding the balance mentioned in subsection (1) (a) , the amount mentioned in subsection (1) (b) and the amounts mentioned in sub section 1 (c) (i) ; and
deducting the amounts mentioned in subsection (1) (d) and (e) (ii) from the amount obtained under paragraph (a) .
(sec.18-ssec.1) A reconciliation under section 17 (1) (b) must contain the following details— the balance as at the end of the month shown on the financial institution’s statement for the principal agent’s trust account; the amount of trust money on hand as at the end of the month and the date the money was received; for each outstanding deposit as at the end of the month— the amount of the outstanding deposit; and the date the outstanding deposit was received; and the date the amount was deposited; details, including the amount, of any electronic funds transfer deposits recorded on the financial institution statement but not entered in the trust account cash book as at the end of the month; details of any outstanding cheques, including, for each cheque— the cheque number; and the amount of the cheque; and the date of the cheque; the balance of the trust account as at the end of the month shown in the trust account cash book.
(sec.18-ssec.2) For a reconciliation under section 17 (1) (b) , the principal agent must reconcile the trust account cash book balance as at the end of the month with the amount obtained by— adding the balance mentioned in subsection (1) (a) , the amount mentioned in subsection (1) (b) and the amounts mentioned in sub section 1 (c) (i) ; and deducting the amounts mentioned in subsection (1) (d) and (e) (ii) from the amount obtained under paragraph (a) .
(a) the balance as at the end of the month shown on the financial institution’s statement for the principal agent’s trust account;
(b) the amount of trust money on hand as at the end of the month and the date the money was received;
(c) for each outstanding deposit as at the end of the month— (i) the amount of the outstanding deposit; and (ii) the date the outstanding deposit was received; and (iii) the date the amount was deposited;
(i) the amount of the outstanding deposit; and
(ii) the date the outstanding deposit was received; and
(iii) the date the amount was deposited;
(d) details, including the amount, of any electronic funds transfer deposits recorded on the financial institution statement but not entered in the trust account cash book as at the end of the month;
(e) details of any outstanding cheques, including, for each cheque— (i) the cheque number; and (ii) the amount of the cheque; and (iii) the date of the cheque;
(i) the cheque number; and
(ii) the amount of the cheque; and
(iii) the date of the cheque;
(f) the balance of the trust account as at the end of the month shown in the trust account cash book.
(i) the amount of the outstanding deposit; and
(ii) the date the outstanding deposit was received; and
(iii) the date the amount was deposited;
(i) the cheque number; and
(ii) the amount of the cheque; and
(iii) the date of the cheque;
(a) adding the balance mentioned in subsection (1) (a) , the amount mentioned in subsection (1) (b) and the amounts mentioned in sub section 1 (c) (i) ; and
(b) deducting the amounts mentioned in subsection (1) (d) and (e) (ii) from the amount obtained under paragraph (a) .
pt.2-div.5
Trust account ledgers
Trust account ledgers
sec.19
Separate ledger account
sec.19 Separate ledger account
A principal agent must keep a separate ledger account in the trust account ledger for each person on whose behalf the principal agent receives trust money.
Maximum penalty—10 penalty units.
sec.20
Particulars to be included in ledger account
sec.20 Particulars to be included in ledger account
A principal agent must ensure that each trust ledger account contains the following particulars—
the name of the person on whose behalf the trust money is received or paid;
a brief description of the matter for which the trust money is received or paid.
Maximum penalty—10 penalty units.
Also, a principal agent must ensure that each trust ledger account contains the following particulars for each entry in the ledger account—
the date the trust money is received or paid;
the name of the person from whom the trust money is received or to whom the trust money is paid;
a brief description of the matter for which the trust money is received or paid;
the amount received or paid;
if the entry is for trust money received—the receipt number;
if the entry is for trust money paid by cheque—the cheque number;
if the entry is for trust money paid by electronic funds transfer, including through a bill payment platform—the unique transaction reference for the payment;
the balance of the trust ledger account after each entry;
if trust money is transferred to the trust ledger account from another trust ledger account under section 22 —the trust account journal reference number or folio reference number recorded against the journal entry by which the transfer is posted.
Maximum penalty—10 penalty units.
s 20 amd 2021 SL No. 170 s 7
(sec.20-ssec.1) A principal agent must ensure that each trust ledger account contains the following particulars— the name of the person on whose behalf the trust money is received or paid; a brief description of the matter for which the trust money is received or paid. Maximum penalty—10 penalty units.
(sec.20-ssec.2) Also, a principal agent must ensure that each trust ledger account contains the following particulars for each entry in the ledger account— the date the trust money is received or paid; the name of the person from whom the trust money is received or to whom the trust money is paid; a brief description of the matter for which the trust money is received or paid; the amount received or paid; if the entry is for trust money received—the receipt number; if the entry is for trust money paid by cheque—the cheque number; if the entry is for trust money paid by electronic funds transfer, including through a bill payment platform—the unique transaction reference for the payment; the balance of the trust ledger account after each entry; if trust money is transferred to the trust ledger account from another trust ledger account under section 22 —the trust account journal reference number or folio reference number recorded against the journal entry by which the transfer is posted. Maximum penalty—10 penalty units.
(a) the name of the person on whose behalf the trust money is received or paid;
(b) a brief description of the matter for which the trust money is received or paid.
(a) the date the trust money is received or paid;
(b) the name of the person from whom the trust money is received or to whom the trust money is paid;
(c) a brief description of the matter for which the trust money is received or paid;
(d) the amount received or paid;
(e) if the entry is for trust money received—the receipt number;
(f) if the entry is for trust money paid by cheque—the cheque number;
(g) if the entry is for trust money paid by electronic funds transfer, including through a bill payment platform—the unique transaction reference for the payment;
(h) the balance of the trust ledger account after each entry;
(i) if trust money is transferred to the trust ledger account from another trust ledger account under section 22 —the trust account journal reference number or folio reference number recorded against the journal entry by which the transfer is posted.
sec.21
Trust account cash book entries to be posted to ledger account
sec.21 Trust account cash book entries to be posted to ledger account
A principal agent must, within 2 business days after the day trust money is received or paid, ensure that each entry in the trust account cash book is posted to the trust ledger account for the person on whose behalf the trust money is received or paid.
Maximum penalty—10 penalty units.
pt.2-div.6
Trust account journals
Trust account journals
sec.22
Transfer by journal entry
sec.22 Transfer by journal entry
A principal agent may transfer trust money from a trust ledger account to another trust ledger account by a journal entry.
However, a principal agent must not transfer trust money by a journal entry unless the principal agent is entitled to pay the money from the trust ledger account for the purpose for which it is transferred.
Maximum penalty—10 penalty units.
A principal agent must ensure that a trust account journal includes the following particulars for each entry in the journal—
the date the trust money is transferred;
the name of, or other means of identifying, the person—
from whose trust ledger account the money is transferred; and
to whose trust ledger account the money is transferred;
using a code to identify the person, for example, S4 stands for N. Smith
a brief description of the matter conducted for each person mentioned in paragraph (b) ;
the amount transferred.
Maximum penalty—10 penalty units.
(sec.22-ssec.1) A principal agent may transfer trust money from a trust ledger account to another trust ledger account by a journal entry.
(sec.22-ssec.2) However, a principal agent must not transfer trust money by a journal entry unless the principal agent is entitled to pay the money from the trust ledger account for the purpose for which it is transferred. Maximum penalty—10 penalty units.
(sec.22-ssec.3) A principal agent must ensure that a trust account journal includes the following particulars for each entry in the journal— the date the trust money is transferred; the name of, or other means of identifying, the person— from whose trust ledger account the money is transferred; and to whose trust ledger account the money is transferred; using a code to identify the person, for example, S4 stands for N. Smith a brief description of the matter conducted for each person mentioned in paragraph (b) ; the amount transferred. Maximum penalty—10 penalty units.
(a) the date the trust money is transferred;
(b) the name of, or other means of identifying, the person— (i) from whose trust ledger account the money is transferred; and (ii) to whose trust ledger account the money is transferred; Example of a way by which the name of a person can be identified— using a code to identify the person, for example, S4 stands for N. Smith
(i) from whose trust ledger account the money is transferred; and
(ii) to whose trust ledger account the money is transferred;
(c) a brief description of the matter conducted for each person mentioned in paragraph (b) ;
(d) the amount transferred.
(i) from whose trust ledger account the money is transferred; and
(ii) to whose trust ledger account the money is transferred;
pt.2-div.7
Transfer of trust accounts
Transfer of trust accounts
sec.23
Dealing with transferred trust accounts
sec.23 Dealing with transferred trust accounts
This section applies if—
a principal agent (the original principal agent ) enters into a partnership with another principal agent; or
a principal agent (also an original principal agent ) disposes of the agent’s business to another principal agent by any means; or
a change occurs in the members of a partnership of principal agents (the original partnership ).
The trust money held by an original principal agent or original partnership must be held by the original principal agent or original partnership until the person who conducts the final audit certifies that the trust money has been properly accounted for and reconciled.
Maximum penalty—10 penalty units.
Despite subsection (2) , if the money is held in a trust account on a trust creditor’s behalf, the money must be transferred if—
the trust creditor authorises the transfer in writing; or
for trust money in the form of a bond or a security deposit in relation to a tenancy agreement, the landlord and the tenant authorise the transfer in writing; or
the matters in subsection (4) are satisfied.
For subsection (3) (c) , the matters are—
the transferee is the public trustee and the public trustee has agreed to accept the transfer; and
the original principal agent or original partnership has taken reasonable steps to contact the person entitled to the money; and
under the Trusts Act 1973 , section 67 —
the original principal agent or original partnership has given a notice for the money; and
the date fixed in the notice given under that section has passed; and
the original principal agent or original partnership has no notice of any claim to the money for the purposes of that section.
(sec.23-ssec.1) This section applies if— a principal agent (the original principal agent ) enters into a partnership with another principal agent; or a principal agent (also an original principal agent ) disposes of the agent’s business to another principal agent by any means; or a change occurs in the members of a partnership of principal agents (the original partnership ).
(sec.23-ssec.2) The trust money held by an original principal agent or original partnership must be held by the original principal agent or original partnership until the person who conducts the final audit certifies that the trust money has been properly accounted for and reconciled. Maximum penalty—10 penalty units.
(sec.23-ssec.3) Despite subsection (2) , if the money is held in a trust account on a trust creditor’s behalf, the money must be transferred if— the trust creditor authorises the transfer in writing; or for trust money in the form of a bond or a security deposit in relation to a tenancy agreement, the landlord and the tenant authorise the transfer in writing; or the matters in subsection (4) are satisfied.
(sec.23-ssec.4) For subsection (3) (c) , the matters are— the transferee is the public trustee and the public trustee has agreed to accept the transfer; and the original principal agent or original partnership has taken reasonable steps to contact the person entitled to the money; and under the Trusts Act 1973 , section 67 — the original principal agent or original partnership has given a notice for the money; and the date fixed in the notice given under that section has passed; and the original principal agent or original partnership has no notice of any claim to the money for the purposes of that section.
(a) a principal agent (the original principal agent ) enters into a partnership with another principal agent; or
(b) a principal agent (also an original principal agent ) disposes of the agent’s business to another principal agent by any means; or
(c) a change occurs in the members of a partnership of principal agents (the original partnership ).
(a) the trust creditor authorises the transfer in writing; or
(b) for trust money in the form of a bond or a security deposit in relation to a tenancy agreement, the landlord and the tenant authorise the transfer in writing; or
(c) the matters in subsection (4) are satisfied.
(a) the transferee is the public trustee and the public trustee has agreed to accept the transfer; and
(b) the original principal agent or original partnership has taken reasonable steps to contact the person entitled to the money; and
(c) under the Trusts Act 1973 , section 67 — (i) the original principal agent or original partnership has given a notice for the money; and (ii) the date fixed in the notice given under that section has passed; and (iii) the original principal agent or original partnership has no notice of any claim to the money for the purposes of that section.
(i) the original principal agent or original partnership has given a notice for the money; and
(ii) the date fixed in the notice given under that section has passed; and
(iii) the original principal agent or original partnership has no notice of any claim to the money for the purposes of that section.
(i) the original principal agent or original partnership has given a notice for the money; and
(ii) the date fixed in the notice given under that section has passed; and
(iii) the original principal agent or original partnership has no notice of any claim to the money for the purposes of that section.
pt.3
Fees
Fees
sec.24
Fee to inspect or copy details in register of undertakings— Act , s 135 (3)
sec.24 Fee to inspect or copy details in register of undertakings— Act , s 135 (3)
For section 135 (3) of the Act , the fee prescribed is 17.55 fee units.
Subsection (3) applies for working out the amount of the fee prescribed by subsection (1) .
For the purpose of the Acts Interpretation Act 1954 , section 48C (3) , the amount is to be rounded to the nearest multiple of 5 cents (rounding one-half upwards).
Subsection (1) prescribes a fee of 17.55 fee units. If the value of a fee unit for this regulation were $1.50, the number of dollars obtained by multiplying $1.50 by 17.55 would be $26.325. Because $26.325 is halfway between $26.30 and $26.35, it is rounded upwards, so the amount of the fee for subsection (1) would be $26.35.
s 24 amd 2015 SL No. 53 s 4 ; 2016 SL No. 85 s 4 ; 2017 SL No. 109 s 4 ; 2018 SL No. 72 s 4 ; 2019 SL No. 105 s 4 ; 2020 SL No. 143 s 4 ; 2021 SL No. 84 s 4 ; 2022 SL No. 79 s 4
(sec.24-ssec.1) For section 135 (3) of the Act , the fee prescribed is 17.55 fee units.
(sec.24-ssec.2) Subsection (3) applies for working out the amount of the fee prescribed by subsection (1) .
(sec.24-ssec.3) For the purpose of the Acts Interpretation Act 1954 , section 48C (3) , the amount is to be rounded to the nearest multiple of 5 cents (rounding one-half upwards). Subsection (1) prescribes a fee of 17.55 fee units. If the value of a fee unit for this regulation were $1.50, the number of dollars obtained by multiplying $1.50 by 17.55 would be $26.325. Because $26.325 is halfway between $26.30 and $26.35, it is rounded upwards, so the amount of the fee for subsection (1) would be $26.35.
pt.4
Claims against fund
Claims against fund
sec.25
Limits on recovery from fund— Act , s 113
sec.25 Limits on recovery from fund— Act , s 113
For section 113 (2) of the Act , a claimant may not recover more than $200,000.
For section 113 (4) of the Act the total amount that may be paid from the fund because of, or arising out of, a contravention mentioned in that section by a single person is $2,000,000.
(sec.25-ssec.1) For section 113 (2) of the Act , a claimant may not recover more than $200,000.
(sec.25-ssec.2) For section 113 (4) of the Act the total amount that may be paid from the fund because of, or arising out of, a contravention mentioned in that section by a single person is $2,000,000.
pt.5
General
General
sec.26
Keeping documents
sec.26 Keeping documents
This section applies subject to the Evidence Act 1977 , section 111 .
A principal agent must keep each document the agent is required to keep under the Act —
in a secure, orderly and accessible way; and
for at least 5 years.
Maximum penalty—10 penalty units.
(sec.26-ssec.1) This section applies subject to the Evidence Act 1977 , section 111 .
(sec.26-ssec.2) A principal agent must keep each document the agent is required to keep under the Act — in a secure, orderly and accessible way; and for at least 5 years. Maximum penalty—10 penalty units.
(a) in a secure, orderly and accessible way; and
(b) for at least 5 years.
sec.27
Keeping documents in electronic form
sec.27 Keeping documents in electronic form
This section applies if—
a principal agent is required to keep a document under the Act ; and
the document is stored in electronic form on a computer.
The principal agent must ensure—
the computer system has enough capacity and backup capability to record the information required to be kept under the Act ; and
the computer system is backed-up at least once a month; and
a computer disk or other electronic device used to store the backed-up information is kept in a location that—
is not the principal agent’s principal place of business or the principal agent’s business address; and
is unaffected by magnetic interference or another thing that may adversely affect the stored information.
Maximum penalty—10 penalty units.
(sec.27-ssec.1) This section applies if— a principal agent is required to keep a document under the Act ; and the document is stored in electronic form on a computer.
(sec.27-ssec.2) The principal agent must ensure— the computer system has enough capacity and backup capability to record the information required to be kept under the Act ; and the computer system is backed-up at least once a month; and a computer disk or other electronic device used to store the backed-up information is kept in a location that— is not the principal agent’s principal place of business or the principal agent’s business address; and is unaffected by magnetic interference or another thing that may adversely affect the stored information. Maximum penalty—10 penalty units.
(a) a principal agent is required to keep a document under the Act ; and
(b) the document is stored in electronic form on a computer.
(a) the computer system has enough capacity and backup capability to record the information required to be kept under the Act ; and
(b) the computer system is backed-up at least once a month; and
(c) a computer disk or other electronic device used to store the backed-up information is kept in a location that— (i) is not the principal agent’s principal place of business or the principal agent’s business address; and (ii) is unaffected by magnetic interference or another thing that may adversely affect the stored information.
(i) is not the principal agent’s principal place of business or the principal agent’s business address; and
(ii) is unaffected by magnetic interference or another thing that may adversely affect the stored information.
(i) is not the principal agent’s principal place of business or the principal agent’s business address; and
(ii) is unaffected by magnetic interference or another thing that may adversely affect the stored information.
sec.28
Audit report details— Act , s 40 (2) (s)
sec.28 Audit report details— Act , s 40 (2) (s)
For section 40 (2) (s) of the Act , the details mentioned in section 18 are prescribed.
pt.6
Transitional provisions
Transitional provisions
sec.29
Definition for pt 6
sec.29 Definition for pt 6
In this part—
repealed regulation means the Property Agents and Motor Dealers Regulation 2001 .
sec.30
Books, accounts and records
sec.30 Books, accounts and records
A book, account or record that was, immediately before commencement, required to be kept under section 38 of the repealed regulation is taken to be a book, account or record required to be kept under section 3.
sec.31
Retained records
sec.31 Retained records
This section applies if—
under section 58 of the repealed regulation, a person was required to keep a document for a period of not less than 5 years (the retention period ); and
the person is a principal agent; and
on the commencement, the retention period has not expired.
Section 58 of the repealed regulation continues to apply to the person in relation to the document.
(sec.31-ssec.1) This section applies if— under section 58 of the repealed regulation, a person was required to keep a document for a period of not less than 5 years (the retention period ); and the person is a principal agent; and on the commencement, the retention period has not expired.
(sec.31-ssec.2) Section 58 of the repealed regulation continues to apply to the person in relation to the document.
(a) under section 58 of the repealed regulation, a person was required to keep a document for a period of not less than 5 years (the retention period ); and
(b) the person is a principal agent; and
(c) on the commencement, the retention period has not expired.
Source text: opening excerpt
Sourced from Queensland Legislation (legislation.qld.gov.au), CC BY 4.0.
pt.1 Preliminary
Preliminary
sec.1 Short title
sec.1 Short title
This regulation may be cited as the Agents Financial Administration Regulation 2014 .
sec.2 Commencement
sec.2 Commencement
This regulation commences on 1 December 2014.
sec.2A Definitions
sec.2A Definitions
In this regulation—
bill includes a rental bond.
bill payment platform means an electronic system for the transfer of funds that is used for the payment of a bill.
s 2A ins 2021 SL No. 170 s 3
pt.2 Administration of trust accounts
Administration of trust accounts
pt.2-div.1 Trust account records
Trust account records
sec.3 Principal agent must keep particular books, accounts and records
sec.3 Principal agent must keep particular books, accounts and records
A principal agent must keep the following books, accounts and records—
a register of trust account receipt forms;
consecutively numbered trust account receipt forms in duplicate;
trust account deposit forms in duplicate;
a trust account cash book;
a trust account ledger;
a trust account journal with journal pages or entries consecutively numbered;
full and accurate accounts of amounts paid or received for a sale or transaction.
Maximum penalty—10 penalty units.
The books, accounts and records mentioned in subsection (1) must be kept in a way that can be properly audited.
Maximum penalty—10 penalty units.
(sec.3-ssec.1) A principal agent must keep the following books, accounts and records— a register of trust account receipt forms; consecutively numbered trust account receipt forms in duplicate; trust account deposit forms in duplicate; a trust account cash book; a trust account ledger; a trust account journal with journal pages or entries consecutively numbered; full and accurate accounts of amounts paid or received for a sale or transaction. Maximum penalty—10 penalty units.
(sec.3-ssec.2) The books, accounts and records mentioned in subsection (1) must be kept in a way that can be properly audited. Maximum penalty—10 penalty units.
(a) a register of trust account receipt forms;
(b) consecutively numbered trust account receipt forms in duplicate;
(c) trust account deposit forms in duplicate;
(d) a trust account cash book;
(e) a trust account ledger;
(f) a trust account journal with journal pages or entries consecutively numbered;
The statutory cross-references in the regulation make it part of a network of regulatory duties: it implements particulars required by audit and inspection provisions of the Act (for example, s 28 prescribes that audit reports include the reconciliation details listed in s 18) and refers to the Trusts Act 1973 where transfer to the public trustee is contemplated on business disposal (s 23(4)). The instrument thus operationalises compliance standards, audit inputs and evidentiary practices for agents who receive, hold or disburse trust money.
Main concepts
The regulation rests on a small set of operational concepts that determine how agents must organise trust money administration.
Trust accounts and trust money: the regulation repeatedly treats money held on behalf of others as trust money and prescribes separate record-keeping for such money. It requires a trust account cash book, trust ledger and individual ledger accounts for each trust creditor (ss 3, 15, 19-21). The ledger structure is central: the principal agent must keep a separate ledger account for each person on whose behalf trust money is received (s 19).
Books and auditability: books, accounts and records listed at s 3(1) must be kept "in a way that can be properly audited" (s 3(2)). The regulation is precise about what constitutes proper auditability in practice: chronological sequencing, retention of pre-deletion snapshots, duplicate copies of receipts, and monthly hard-copy outputs from computerised systems (s 4).
Time-bound entries and reconciliations: timing is a recurring concept. Receipts must be entered or receipt forms completed on the day of receipt or the day the agent becomes aware of an EFT (s 8). Cash book entries for receipts and payments must be recorded within two business days or, for EFT receipts, on the day the agent becomes aware (ss 15-16). Monthly reconciliations of cash book with ledger balances and with financial institution statement balances must be done within five business days of month end and retained (ss 17-18).
Electronic funds transfers and bill payment platforms: the regulation distinguishes payments made by electronic funds transfer (EFT) and payments made via a bill payment platform that does not carry an account number. Where a bill payment platform is used without an account number, specific identifying particulars must be recorded: the payee’s name, the platform name and a unique transaction reference (ss 14, 16). Similarly, for EFT deposits, the principal agent must obtain weekly transaction reports and retain them (s 12).
Computerised systems constraints: if a principal agent uses a computerised accounting system (the system), the regulation restricts deletion, requires immutable audit trail behaviour (amendments to transaction particulars must be made by separate transactions), and mandates chronological outputs and hard copies of specified records within five business days of month end (s 4).
Transfer mechanics on business change: on disposal or partnership changes, trust money remains with the original principal agent until a final audit certifies reconciliation; exceptions allow transfer if the trust creditor authorises in writing, both landlord and tenant so authorise for tenancy bond transfers, or if Transfer to the Public Trustee conditions under the Trusts Act 1973 s 67 are satisfied (s 23).
Record content specificity: the regulation enumerates detailed particulars that must appear on forms, in cash books and in ledgers. Examples include receipt particulars (agent name, licence number, dates, signatures, identification of person on whose behalf the money is held, rent address and paid-up-to date; vehicle identification particulars for motor dealer option payments) (s 9), cheque-butt particulars (s 13) and ledger entry fields (s 20).
Penalty-unit based enforcement and fee units: the instrument uses penalty units as the sanction metric for breaches (commonly 10 penalty units) and prescribes an inspection fee in fee units (s 24). The regulation points to the Acts Interpretation Act for rounding rules when converting fee units to dollar amounts (s 24).
These concepts are operational: they determine what systems, controls and workflows a principal agent must implement, the evidentiary quality required for audits and the specific data elements that must be preserved and produced.
Who it affects
The regulation speaks in terms of "principal agent" , persons required by the Act to administer trust accounts. In practice, this covers agents who receive, hold, or disburse trust money in the course of acting for others under the Act’s definitions. The instrument’s duties fall squarely on those principal agents responsible for establishing and maintaining trust accounts, whether they operate as sole traders, partnerships, corporations, or as part of a business transfer.
Affected roles and business units include:
Front-office cash handlers and reception staff who issue or input trust account receipt forms and must ensure immediate completion when money is received (s 8) and accurate entries in the trust account cash book within two business days (s 15). They must also provide a duplicate receipt promptly on request and ensure cancelled receipts are retained with reasons (s 10).
Finance and accounting teams who manage the trust account ledger, cash book reconciliations and ledger postings; they must post cash book entries to the corresponding ledger within two business days (s 21), maintain separate ledger accounts for each trust creditor (s 19), and perform monthly reconciliations between cash book, ledger balances and the bank statement within five business days (s 17). They must also maintain cheque butts, transaction report statements and other payment documentation (ss 13-14, 12).
IT and systems administrators responsible for selecting and configuring computerised accounting systems. If a system is used, it must prevent deletion of trust ledger accounts unless zero balance and retain a snapshot of the account before deletion; require any amendment to be recorded as a separate transaction; and be capable of recording changes to key particulars chronologically (s 4). Systems administrators must also ensure monthly backups and off-site storage requirements are met (s 27).
Compliance, audit and risk staff who must compile and retain reconciliations and records in a way that can be properly audited (s 3(2)), prepare supporting schedules matching s 18 detail requirements for audit reporting (s 28), and manage transfers of trust money when business ownership or partnership membership changes (s 23).
Business owners considering sale, partnership changes or business disposal, because trust money remains with the original agent until a final audit certifies proper accounting, unless the conditions for transfer in s 23(3) are met (s 23(2)-(4)). This affects timing of sale completion and settlement of trust creditors.
Entities operating bill payment platform arrangements or receiving payments via such platforms, because the regulation requires specific recording (payee name, platform name, unique transaction reference) when payments are made through platforms that do not include an account number (ss 14, 16).
Indirectly affected parties include trust creditors (clients, tenants, purchasers) who rely on agents’ compliance for accurate accounting of their money, and auditors and regulators who rely on the specific record formats, hard copies and reconciliation outputs the regulation mandates.
The regulation sets duties and operational constraints that allocate costs and tasks to principal agents: administrative time, system configuration, backup and off-site storage costs, printing/hard-copy production, and potential penalties for non-compliance. It also affects the sequencing of business transfers and the ability to transfer trust money on disposal, since transfers are conditioned on audit certification or written authorisations (s 23).
Key duties and rights
Key duties
Maintain specified books and records: Principal agents must keep a register of trust account receipt forms; consecutively numbered receipt forms in duplicate; trust account deposit forms in duplicate; a trust account cash book; a trust account ledger; a trust account journal with consecutively numbered pages or entries; and full and accurate accounts of amounts paid or received for a sale or transaction (s 3(1)). These books must be kept in an auditable way (s 3(2)).
Computer system constraints: Where a computerised accounting system is used, the agent must ensure the system does not allow deletion of a trust ledger account unless it has a zero balance and a record of the account as it was immediately before deletion is kept; that amendments to transaction particulars are made by separate transactions; and that any produced record is in chronological sequence (s 4(2)). The system must be capable of keeping chronological records of changes to key particulars (s 4(3)). The agent must make hard copies of specified information within five business days after month end and, before deleting a ledger from the system, make and keep a hard copy (s 4(4)-(5)).
Receipt and deposit handling: Receipt forms must be headed as prescribed and consecutively numbered; duplicate copies must be headed “Office Copy” or “Duplicate Copy” (s 7). Receipt forms must be completed immediately on receipt of money, or on the day the agent becomes aware of EFT receipts (s 8). Each receipt must contain detailed particulars including the agent’s name, licence number, dates, person identifying information, description of matter, amount, method of receipt and, for rent or certain motor-vehicle option payments, additional particulars (s 9). Agents must keep a register of receipt forms and update it within two business days of using a receipt form (s 6).
Deposit documentation and EFT reporting: Deposit forms must show trust account name and number, amount, date and depositor signature; cheque deposits require drawer and bank branch particulars (s 11). If deposits are made by EFT, the agent must obtain at least weekly transaction report statements showing deposits made into the trust account and keep them (s 12).
Payment records: For cheques drawn on trust accounts, particulars must be recorded on the cheque butt or other document and retained (s 13). For EFT payments, the agent must keep transaction report statements showing date, amount and, where a bill payment platform without account number is used, payee name, platform name and unique transaction reference; otherwise account name and number must be recorded (s 14).
Cash book and ledger entries: Entries for receipts and payments must be recorded in the trust account cash book within two business days (or immediately for EFT receipts on awareness), and in chronological order (ss 15-16). Each cash book entry must be posted to the relevant trust ledger account within two business days (s 21). Each trust ledger account must include specified particulars for each entry, including receipt numbers, cheque numbers and unique transaction references for EFTs (s 20).
Monthly reconciliations: Within five business days after month end, reconcile the trust account cash book balance with trust ledger creditor balances and reconcile the financial institution statement balance with the cash book balance. Each reconciliation must be kept (s 17). Reconciliation details must include bank statement balance, cash on hand amounts with receipt dates, outstanding deposits with dates and dates deposited, EFT deposits recorded on statement but not in cash book, outstanding cheque particulars, and cash book balance (s 18). The reconciliation must mathematically reconcile as prescribed in s 18(2).
Journal transfers: Trust money may be transferred between ledger accounts by journal entry only if the agent is entitled to pay the money for the purpose for which it is transferred; the journal must include transfer date, identification of source and destination accounts, description of matters and amount (s 22).
Business transfer rules: On partnership formation, business disposal or change in partnership membership, trust money remains with the original agent until the final audit certifies proper accounting, unless the trust creditor authorises transfer in writing, both landlord and tenant authorise transfer for tenancy bonds, or the Trusts Act public trustee transfer conditions are satisfied (s 23).
Document retention and backups: Documents required to be kept must be maintained securely, orderly and accessibly, for at least five years (s 26). Where documents are stored electronically, the system must have sufficient capacity and backup capability, be backed up at least monthly, and backup media must be stored off-site and away from magnetic interference (s 27).
Rights and permitted actions
Journal transfer right: Subject to the entitlement condition, an agent has the right to transfer trust money between ledger accounts by journal entry, and the regulation prescribes the required particulars of such a transfer (s 22).
Transfer of funds on written authorisation: A trust creditor can authorise transfer of their trust money in writing, which, subject to the written authorisation, permits the original principal agent to transfer the creditor’s funds to the transferee even before final audit certification (s 23(3)(a)).
Transfer of tenancy bond with both parties’ written agreement: For tenancy bond or security deposit trust money, if both landlord and tenant authorise in writing, that authorises transfer (s 23(3)(b)).
Use of computerised systems: Agents may use computerised systems for the books and records listed at s 3(1) provided the system satisfies the constraints in s 4. The regulation therefore allows electronic workflows provided they satisfy immutability, audit trail and hard-copy production requirements.
Each duty has a maximum penalty attached in most instances (commonly 10 penalty units as stated for many provisions). The duties are prescriptive and focused on data elements, timing and evidentiary outputs, thereby shaping the internal controls, IT configuration and business processes required of principal agents.
Penalties and enforcement
Penalties prescribed in this regulation are predominantly monetary penalties expressed in penalty units. A consistent maximum penalty of 10 penalty units appears across numerous provisions that govern record keeping, entries, electronic system behaviour, receipt handling, deposit and payment documentation, ledger and journal entries, reconciliations and document retention. Specific references include the books and records duties (s 3(1)-(2)), the computer system constraints (s 4(2)-(5)), the prohibition on irrelevant entries (s 5), completion and content obligations for receipts and deposits (ss 8-12), cash book and ledger timing (ss 15-17, 21), trust ledger particulars (ss 19-20), journal transfer entitlement (s 22), business transfer constraints (s 23(2)), and document retention and electronic backup requirements (ss 26-27). Each of those provisions includes the express admonition "Maximum penalty,10 penalty units."
The regulation also prescribes fees and monetary caps:
Inspection fee: s 24 prescribes a fee of 17.55 fee units for the inspection or copying of details in the register of undertakings under the Act s 135(3). The section includes an express rounding rule reference under the Acts Interpretation Act 1954 s 48C(3) and an explanatory numeric example illustrating the rounding to the nearest 5 cents. The regulation therefore fixes the fee in fee units and anticipates the conversion to dollars under the parent statutes.
Compensation fund limits: s 25 sets a claimant limit and an aggregate limit: a claimant may not recover more than $200,000 under s 113(2) of the Act; and for contraventions mentioned in s 113(4) of the Act, the total amount that may be paid from the fund because of, or arising out of, a contravention by a single person is $2,000,000. These are express caps on recoveries from the fund.
Enforcement mechanisms implied by the regulation
The regulation specifies offences and maximum penalties but does not itself name the enforcement agency or prescribe criminal process. Enforcement will therefore operate through the Act’s enforcement framework and relevant prosecutorial or regulatory mechanisms, which the regulation supplements by setting specific offences and maximum penalty units for breach. Where the Act requires audit reports, the regulation prescribes required audit details (s 28 referencing s 18), thereby feeding enforcement and audit evidence.
The regulation uses record-keeping obligations, audit-oriented requirements (chronological output, hard copies, retention), and specific particulars that create documentary trails for regulators and auditors to examine. The repeated "Maximum penalty,10 penalty units" signals a consistent administrative penalty regime for non-compliance with procedural and record-keeping duties.
Practical enforcement consequences
Failure to maintain auditable books, produce required hard copies or perform timely reconciliations exposes principal agents to proceedings for the statutory offences noted in the regulation. Penalty units convert to dollar fines under the acts that set the value of a penalty unit; the regulation does not specify the dollar value of a penalty unit.
The regulation’s pecuniary caps on the compensation fund (s 25) limit the financial exposure of the fund and thereby potentially affect the scale of claims that can be made under the Act. A claimant seeking more than $200,000 is constrained by s 25(1); claims arising from a single person’s contraventions are further capped at $2,000,000 available from the fund (s 25(2)).
The requirement that transferred trust accounts remain with the original principal agent until certified by the final audit (s 23(2)) creates an enforcement-related lock: auditors can require records to be available and certified before enabling transfer of trust money on business disposal or partnership change.
The regulation therefore structures enforcement largely through documentary duties and financial sanctions, rather than prescribing other remedies; enforcement agencies will rely on the specified records and reconciliations to identify, substantiate and, where appropriate, prosecute breaches.
How it interacts with other laws
This regulation is subordinate legislation made under the Agents Financial Administration Act 2014 and repeatedly cross-references provisions of that Act. It implements and gives operational effect to the Act’s broad requirements by prescribing formats, timeframes and particulars necessary for compliance with statutory duties, audit and inspection.
Specific interactions and cross-references included in the regulation text:
Agents Financial Administration Act 2014: Numerous sections of the regulation explicitly implement or supply particulars for sections of the Act. Examples include s 24 which prescribes the fee for section 135(3) of the Act; s 25 which sets limits on recovery for section 113 of the Act; and s 28 which prescribes audit report details for section 40(2)(s) of the Act. The regulation therefore supplements the Act by providing precise, enforceable particulars and numerical caps.
Trusts Act 1973: Section 23(4) of the regulation invokes the Trusts Act 1973, section 67, in the context of transferring trust money to a transferee that is the Public Trustee. The regulation requires the original principal agent to give notice for money under s 67 of the Trusts Act and to wait the required time before transferring to the public trustee, absent written authorisation or other conditions. Thus settlement of unclaimed trust funds interacts directly with the Trusts Act procedures.
Motor Dealers and Chattel Auctioneers Act 2014: Section 9 refers to the Motor Dealers and Chattel Auctioneers Act 2014 schedule 1 section 3C for the definition of "built date" where a receipt relates to a prospective buyer’s payment for an option to purchase a used motor vehicle sold on consignment. The regulation therefore integrates motor vehicle-specific identification requirements for ledger receipts into the trust-account framework.
Evidence Act 1977: Section 26 applies subject to Evidence Act 1977 section 111. That indicates document-keeping obligations coexist with, and do not override, evidentiary rules in the Evidence Act. Practitioners should therefore consider evidentiary admissibility and privilege issues in addition to record-keeping duties.
Acts Interpretation Act 1954: Section 24 expressly refers to the Acts Interpretation Act 1954 section 48C(3) for rounding rules when converting fee units to dollar amounts, thereby tying the regulation’s fee prescription into the statutory machinery for interpreting monetary unit conversions.
Repealed instruments and transitional continuity: Part 6 explicitly deals with transition from the Property Agents and Motor Dealers Regulation 2001. Section 30 deems books, accounts and records required under the repealed regulation’s section 38 to be treated as required under s 3 of this regulation. Section 31 preserves retention obligations where the retention period imposed under the repealed regulation had not expired on commencement. This avoids gaps in obligations during the regulatory transition and maintains continuity of record retention duties.
Operational implications of interactions
Audit reporting and regulator reliance: s 28 prescribes that audit reports must incorporate the reconciliation details listed in s 18, linking the regulation to the Act’s audit requirements (s 40(2)(s) of the Act). Auditors will therefore prepare reports referencing the detailed reconciliation metrics the regulation mandates.
Multiple statutory sources for chain-of-title and unclaimed funds: s 23 creates a pathway for transferring trust funds to the public trustee but requires compliance with Trusts Act s 67 procedures. This can create a multi-stage statutory process involving provision of notices, waiting periods and absence of competing claims before transfer, aligning trust-account closure with trust law mechanisms.
Fee and penalty conversion: the regulation sets fees in fee units and penalties in penalty units, so conversion to actual dollar amounts depends on other legislation that sets the current value of those units.
In sum, the regulation is integrated into a statutory network: it operationalises the Act’s record-keeping and audit requirements, cross-references trust and motor vehicle legislation for specific contexts, preserves transitional obligations from the prior regulatory regime, and uses interpretive rules from the Acts Interpretation Act for monetary rounding. Practitioners must therefore coordinate compliance with multiple statutes when designing controls and during audits or business transfers.
Amendment history
The regulation text contains internal amendment notes recording several alterations since commencement. The instrument commenced on 1 December 2014 (s 2). Notable amendments and insertions recorded in the text include the following entries that appear in the section footnotes and inline amendment markers:
s 2A (definitions): A new s 2A (Definitions) was inserted by 2021 SL No. 170 s 3. The inserted definition includes "bill" and "bill payment platform" and supplies the cross-reference used for bill payment platform obligations elsewhere (s 2A note).
s 9: Section 9 contains an amendment note "s 9 amd 2021 SL No. 170 s 4" indicating that the particulars required on trust account receipts were amended in 2021 (the text now includes particulars such as vehicle identification details and references the Motor Dealers and Chattel Auctioneers Act 2014 schedule 1 section 3C for "built date").
ss 14 and 16: Sections 14 and 16 show amendment notes "s 14 amd 2021 SL No. 170 s 5" and "s 16 amd 2021 SL No. 170 s 6" respectively, signalling 2021 amendments that added or clarified requirements concerning electronic funds transfers and bill payment platforms (for example, the requirement to record bill payment platform name and unique transaction reference where no account number is provided).
s 20: Section 20 includes "s 20 amd 2021 SL No. 170 s 7", indicating ledger account particulars were amended in 2021 to include unique transaction references for EFTs and required journal folio references where transfers are posted under s 22.
s 4 and other technical amendments: Section 4 contains an insertion note "s 2A ins 2021 SL No. 170 s 3" earlier referencing insertion of definitions; section 4 itself displays text and penalties with the 10 penalty unit standard.
s 24: The fee provision in s 24 records a sequence of amendment notes: "s 24 amd 2015 SL No. 53 s 4; 2016 SL No. 85 s 4; 2017 SL No. 109 s 4; 2018 SL No. 72 s 4; 2019 SL No. 105 s 4; 2020 SL No. 143 s 4; 2021 SL No. 84 s 4; 2022 SL No. 79 s 4". These annotations indicate periodic updates to the fee schedule (prescribed fee in fee units) in successive statutory instruments between 2015 and 2022, and the section includes a worked example of rounding when converting fee units to dollars.
General comment: The regulation text carries amendment markers within the sections (for example "s 9 amd 2021 SL No. 170 s 4; s 14 amd 2021 SL No. 170 s 5; s 16 amd 2021 SL No. 170 s 6; s 20 amd 2021 SL No. 170 s 7") indicating a tranche of amendments in 2021 that introduced or clarified rules concerning electronic payments, bill payment platforms and ledger particulars.
Transitional provisions (Part 6) are part of the regulation’s structure and ensure continuity from the previous regulatory instrument, the Property Agents and Motor Dealers Regulation 2001 (s 29). Section 30 deems books, accounts and records previously required under s 38 of the repealed regulation to be taken as required under s 3 of this regulation. Section 31 preserves retention obligations where the retention period under the repealed regulation had not expired.
The amendment notes in the text therefore show iterative adjustments to the regulation’s operational detail, particularly to address electronic payment methods and ledger particulars in 2021, and regular fee updates captured in s 24 across 2015-2022. Practitioners should consult the consolidated regulation as published and any amending instruments listed in the footnotes for precise application dates of each amendment.
Litigation history
The regulation text supplied contains no case law references and does not record any litigation history. It does not name judicial decisions, tribunals, or precedent interpreting its provisions. The only statutory cross-references in the instrument are to other Acts (for example, the Trusts Act 1973 s 67, the Motor Dealers and Chattel Auctioneers Act 2014 schedule 1 s 3C, the Evidence Act 1977 s 111 and the Acts Interpretation Act 1954 s 48C(3)), but the regulation itself does not reproduce any adjudications or reported judicial interpretations.
Because no cases are cited in the regulation, there is no litigation or appellate history set out in the text that would clarify contested points (for example, the meaning of "entitled to pay" for journal transfers under s 22, or the interpretation of the "properly audited" requirement in s 3(2)). Practitioners seeking precedent must therefore consult adjudicated decisions elsewhere or regulatory determinations applying the Act and this regulation, none of which are included in the instrument provided.
Absent litigation recorded in the regulation, compliance guidance, audit opinions and regulator advisories will be important secondary sources for operational interpretation of ambiguous points; the regulation itself, however, does not supply case law or dispute-resolution examples.
Gotchas
The regulation contains several technical and timing requirements that create practical pitfalls if not handled precisely. The following concrete operational "gotchas" arise directly from the text and should be noted when implementing controls.
Strict and short timeframes: Multiple provisions impose tight deadlines,receipt forms must be completed immediately on receipt or on the day the agent becomes aware of an EFT (s 8); cash book entries and posting to ledger must be done within two business days of receipt or payment (ss 15, 16, 21); monthly reconciliations and required hard-copy exports must be completed within five business days after month end (ss 4(4), 17). Missing these windows triggers exposure to the statutory maximum penalties cited in the sections.
Computerised system immutability requirements: If a principal agent uses a computerised accounting system, the system must prevent deletion of a trust ledger account unless the account has a zero balance and a record of the account as it was immediately before deletion is kept (s 4(2)(a)). The system must also ensure that amendments are made by separate transactions and that outputs are in chronological sequence (s 4(2)(b)-(c)). Agents relying on standard accounting software must check whether the software can meet these constraints or must adopt compensating controls such as enforced export and archival procedures before deletion.
Hard copy requirement before deletion and monthly hard-copy outputs: The agent must make a hard copy of certain ledger balances and reconciliations within five business days after month end (s 4(4)) and must make a hard copy immediately before deletion of a trust ledger or investment ledger account from the system (s 4(5)). Failure to generate these hard copies or to store them in the required manner is a breach with a maximum penalty.
Off-site backup requirements and magnetic interference caveat: Backups must be made at least monthly and backup media stored at a location that is not the agent’s principal place of business or business address and is "unaffected by magnetic interference or another thing that may adversely affect the stored information" (s 27). Agents using cloud services or local removable media must ensure the physical or contractual arrangement satisfies the specified location and interference constraints.
Bill payment platform specifics: Where payments are made using a bill payment platform without an account number, the agent must record the payee’s name, the platform name and the unique transaction reference in transaction report statements and in cash-book entries (ss 14(2)(c), 16(2)(c)). If a bill payment platform does provide account numbers, the usual account name and number must be recorded (s 14(2)(d)). Misidentifying or failing to record unique transaction references will break the reconciliation chain required by s 18.
Weekly EFT deposit statements: When deposits are made by EFT, agents must obtain at least one weekly transaction report statement from the financial institution showing deposits made into the trust account and keep it in records (s 12). Agents who rely on monthly statements only risk non-compliance.
Detailed particulars on receipts for special categories: Receipts for rent must include the address and the day up to which rent is paid (s 9(j)). Receipts for prospective buyers’ option payments on consignment-used motor vehicles require extensive vehicle identification particulars including engine number or caravan chassis number, identification number, registration number and built date (s 9(k)). Failure to capture these particulars will render receipts non-compliant.
Prohibition on irrelevant entries: Section 5 states that a principal agent must not enter in any book, account or record any particular that is not a particular relating to the agent carrying on a business as an agent. Superfluous or non-business entries in trust records are therefore prohibited and attract a maximum penalty.
Journal transfer entitlement constraint: Transfers by journal entry are permitted only if the agent is entitled to pay the money for the purpose for which it is transferred (s 22(2)). That is a legal entitlement test, not merely an internal accounting instruction; agents should document the basis of entitlement before effecting journal transfers.
Business sale and audit certification friction: On business disposal or partnership change, trust money must be held by the original principal agent until the person who conducts the final audit certifies proper accounting and reconciliation (s 23(2)). This creates practical friction in settlement timing for business sales because transfer of trust funds is contingent on the final auditor’s certificate unless written authorisations are secured from trust creditors or the public trustee pathway under Trusts Act s 67 is followed (s 23(3)-(4)).
Retained records from repealed regulation: Transitional section 31 preserves retention obligations from the repealed regulation where the retention period had not expired on commencement. Agents must therefore be alert to differing retention start dates and overlapping obligations carried forward by the transitional provisions (ss 29-31).
Fee rounding nuance: Section 24 provides a worked example illustrating rounding under Acts Interpretation Act s 48C(3). When converting fee units to dollar amounts, the rounding rule to the nearest 5 cents may produce counter-intuitive results; practitioners should apply the rounding rule rather than simple truncation.
These "gotchas" are concrete operational traps grounded in the regulation’s timelines, data-element specificity, IT system constraints and transfer conditions. They each create a discrete compliance task that must be mapped to operational procedures, staff responsibilities, software capabilities and audit evidence.
How to comply
The regulation prescribes precise data elements, timings and outputs; compliance requires aligning processes, people and systems to those prescriptions. Below is an operational checklist mapping key regulatory requirements to practical steps, each grounded in the relevant section.
Map responsibilities and document workflows
Assign accountable persons for receipt handling, ledger maintenance, bank deposits, EFT payments, reconciliations and backups. Link each task to the applicable section: receipt completion (s 8), cash book entries (ss 15-16), ledger posting (s 21), and reconciliations (s 17).
Receipt forms and register (ss 6-10)
Procure consecutively numbered trust account receipt books or configure electronic receipt templates to display the prescribed heading "Agents Financial Administration Act 2014 Trust Account Receipt" and duplicate copies marked "Office Copy" or "Duplicate Copy" (s 7).
Maintain a register of receipt form numbers and update the register within 2 business days of a receipt form being brought into use (s 6).
Ensure staff complete receipt forms immediately on cash/cheque receipt or on the day the agent becomes aware of an EFT (s 8).
Capture all required particulars on each receipt per s 9 (agent name and licence number, dates, person identification, matter description, amount, method of receipt and specific rent or vehicle details where applicable).
Provide duplicate receipt promptly on request and retain duplicates and cancelled receipts with a brief reason for cancellation (s 10).
Deposit and EFT debit records (ss 11-14)
Keep copies of trust account deposit forms showing account name/number, amount, date and depositor signature; capture drawer and branch details for cheque deposits (s 11).
For EFT deposits, obtain and retain transaction report statements from the financial institution at least weekly showing deposits into the trust account (s 12).
For EFT payments, ensure transaction report statements include date, amount and either (i) where a bill payment platform without account number is used, the payee name, platform name and unique transaction reference; or (ii) the account name and number where available (s 14).
Cash book, ledger and timing controls (ss 15-21)
Enter receipt particulars in the trust account cash book within two business days after receipt (or on the day of awareness for EFT receipts) and ensure entries are in the order receipts are made out (s 15).
Enter payments in the trust cash book within two business days after payment, recording cheque particulars or bill payment platform particulars and ledger account identification (s 16).
Post every cash book entry to the corresponding trust ledger account within two business days of the day trust money is received or paid (s 21).
Maintain a separate ledger account for each person on whose behalf trust money is held, and ensure each ledger contains required entry fields such as receipt numbers, cheque numbers, unique transaction references and running balance (ss 19-20).
Monthly reconciliations and audit-ready outputs (ss 17-18, s 28)
Reconcile trust account cash book balance to ledger creditor balances, ensuring ledger shows each creditor’s name and amount held as at month end (s 17(1)(a)).
Reconcile the financial institution statement balance for the trust account to the trust account cash book balance as at month end and produce reconciliation details specified in s 18 (bank statement balance, cash on hand, outstanding deposits with received and deposited dates, EFT deposits on statement not in cash book, outstanding cheque particulars, cash book balance) within five business days after month end (s 17(1)(b), s 18).
Retain each reconciliation and ensure auditors can locate supporting documentation; s 28 prescribes that audit report details include the reconciliation particulars in s 18.
Computerised accounting system design and procedures (s 4)
If using a system, ensure it does not allow deletion of a trust ledger account unless it has zero balance and a pre-deletion snapshot is kept (s 4(2)(a)). If deletion is necessary, create and retain a hard copy of the ledger account immediately before deletion (s 4(5)).
Configure the system to record amendments to transaction particulars by separate entries (s 4(2)(b)) and to produce records in chronological sequence (s 4(2)(c)).
Ensure the system can log changes to key particulars (name and address of person, matter description, amount of trust money held, trust account financial institution account number) in chronological order (s 4(3)).
Generate hard copies within five business days after month end of required information: trust ledger balances, trust account cash book reconciliation (if the system is used to prepare it), and reconciliation of the financial institution statement balance with the cash book (s 4(4)).
Backup and storage (ss 26-27)
Implement backup schedules to back up electronic records at least monthly (s 27(2)(b)).
Store backup media at a location that is not the principal place of business or business address and that is protected from magnetic interference or other adverse effects (s 27(2)(c)).
Keep all documents required by the Act in a secure, orderly and accessible way for at least five years (s 26(2)).
Cheque and payment controls (ss 13-14)
For cheques drawn, ensure cheque butt or equivalent contains date, payee name, name of person on whose behalf cheque is drawn, short description and amount; retain cheque butts (s 13).
For EFT payments, retain the bank’s transaction report statement with required particulars such as unique transaction reference and bill payment platform information if applicable (s 14).
Journal transfers and entitlement evidence (s 22)
Before effecting a journal transfer between ledger accounts, document the legal entitlement to pay the money for the purpose of the transfer (s 22(2)).
Include in the trust account journal each transfer’s date, identification of source and recipient ledger account, description of the matter and the amount (s 22(3)).
Business disposal and partnership changes (s 23)
When selling or entering into a partnership, plan for the final audit certificate requirement: trust money will be held by the original agent until the final auditor certifies proper accounting and reconciliation (s 23(2)).
Where necessary, obtain written authorisations from trust creditors to permit transfer of their funds (s 23(3)(a)); for tenancy bonds, obtain written authorisation from both landlord and tenant (s 23(3)(b)).
If transfer to the public trustee is anticipated, follow the Trusts Act 1973 s 67 notice and waiting-period process as required by s 23(4).
Training, monitoring and audit trail reviews
Train staff on the strict timeframes (immediate/on-awareness for EFT, two business days for cash book and ledger posting, five business days for reconciliations/hard-copy exports).
Periodically test the system’s ability to produce chronological reports and pre-deletion snapshots and verify the backup media is stored in an appropriate off-site location.
Implement periodic internal audits to confirm ledger separations per person, proper use of receipt numbering, duplicate retention and adequacy of EFT transaction statements.
Fee and fund caps awareness (s 24-25)
Apply the prescribed inspection fee in fee units for register inspections under Act s 135(3) (s 24); consult the current fee unit dollar value and apply the Acts Interpretation Act rounding rule referenced in s 24.
Be aware of compensation fund caps: claimants limited to $200,000 and aggregate payments for a single person limited to $2,000,000 (s 25), and advise clients accordingly where fund recovery is a potential remedy.
Compliance should be documented: create checklists that map each internal control to the corresponding statutory section, retain evidence of weekly EFT transaction reports and monthly reconciliations, and maintain an audit file combining hard copies and exported electronic records. Given the multiple entries stating "Maximum penalty,10 penalty units" for failures across the spectrum of duties, the operational emphasis should be on timely recording, auditable trail preservation and system configuration that enforces immutability and chronological ordering.
Careful attention to the regulation’s particular requirements for bill payment platforms, EFT unique transaction references, pre-deletion hard-copy creation, off-site backup storage, and entitlement documentation for journal transfers will minimise the principal agent’s exposure to breaches and preserve evidentiary quality for audits and any enforcement review.
(g) full and accurate accounts of amounts paid or received for a sale or transaction.
sec.4 Using software to keep books, accounts and records
sec.4 Using software to keep books, accounts and records
This section applies if a principal agent uses a computerised accounting system (the system ) in connection with keeping books, accounts and records mentioned in section 3 (1) .
The principal agent must ensure that—
the system does not allow the deletion of a trust ledger account unless—
the account has a zero balance; and
a record of the account, as it was immediately before its deletion, is kept; and
an amendment of the particulars of a transaction recorded on the system is made by a separate transaction recorded on the system; and
any record of information produced by the system is produced in chronological sequence.
Maximum penalty—10 penalty units.
Also, the principal agent may use the system only if the system is capable of keeping in chronological sequence, a record of any change to the following information—
the name and address of a person for whom trust money is held;
the description of a matter being conducted by the principal agent;
the amount of trust money held for a person by the principal agent;
the financial institution account number of a trust account.
The principal agent must, within 5 business days after the end of the month, make a hard copy of the following information—
if the agent uses the system to keep a trust ledger account—the balance of the trust ledger account;
if the agent uses the system to prepare a trust account cash book reconciliation—the reconciliation completed under section 17 (1) (a) ;
if the agent uses the system to reconcile a trust account financial institution statement balance with the trust account cash book balance—the reconciliation completed under section 17 (1) (b) .
Maximum penalty—10 penalty units.
If the principal agent uses the system to keep a trust account ledger, the principal agent must immediately before a trust ledger account or investment ledger account is deleted from the system—
make a hard copy of the ledger account; and
keep the hard copy in the principal agent’s records.
Maximum penalty—10 penalty units.
(sec.4-ssec.1) This section applies if a principal agent uses a computerised accounting system (the system ) in connection with keeping books, accounts and records mentioned in section 3 (1) .
(sec.4-ssec.2) The principal agent must ensure that— the system does not allow the deletion of a trust ledger account unless— the account has a zero balance; and a record of the account, as it was immediately before its deletion, is kept; and an amendment of the particulars of a transaction recorded on the system is made by a separate transaction recorded on the system; and any record of information produced by the system is produced in chronological sequence. Maximum penalty—10 penalty units.
(sec.4-ssec.3) Also, the principal agent may use the system only if the system is capable of keeping in chronological sequence, a record of any change to the following information— the name and address of a person for whom trust money is held; the description of a matter being conducted by the principal agent; the amount of trust money held for a person by the principal agent; the financial institution account number of a trust account.
(sec.4-ssec.4) The principal agent must, within 5 business days after the end of the month, make a hard copy of the following information— if the agent uses the system to keep a trust ledger account—the balance of the trust ledger account; if the agent uses the system to prepare a trust account cash book reconciliation—the reconciliation completed under section 17 (1) (a) ; if the agent uses the system to reconcile a trust account financial institution statement balance with the trust account cash book balance—the reconciliation completed under section 17 (1) (b) . Maximum penalty—10 penalty units.
(sec.4-ssec.5) If the principal agent uses the system to keep a trust account ledger, the principal agent must immediately before a trust ledger account or investment ledger account is deleted from the system— make a hard copy of the ledger account; and keep the hard copy in the principal agent’s records. Maximum penalty—10 penalty units.
(a) the system does not allow the deletion of a trust ledger account unless— (i) the account has a zero balance; and (ii) a record of the account, as it was immediately before its deletion, is kept; and
(i) the account has a zero balance; and
(ii) a record of the account, as it was immediately before its deletion, is kept; and
(b) an amendment of the particulars of a transaction recorded on the system is made by a separate transaction recorded on the system; and
(c) any record of information produced by the system is produced in chronological sequence.
(i) the account has a zero balance; and
(ii) a record of the account, as it was immediately before its deletion, is kept; and
(a) the name and address of a person for whom trust money is held;
(b) the description of a matter being conducted by the principal agent;
(c) the amount of trust money held for a person by the principal agent;
(d) the financial institution account number of a trust account.
(a) if the agent uses the system to keep a trust ledger account—the balance of the trust ledger account;
(b) if the agent uses the system to prepare a trust account cash book reconciliation—the reconciliation completed under section 17 (1) (a) ;
(c) if the agent uses the system to reconcile a trust account financial institution statement balance with the trust account cash book balance—the reconciliation completed under section 17 (1) (b) .
(a) make a hard copy of the ledger account; and
(b) keep the hard copy in the principal agent’s records.
sec.5 Entries in books, accounts and records
sec.5 Entries in books, accounts and records
A principal agent must not enter in any book, account or record kept under the Act any particular that is not a particular relating to the agent carrying on a business as an agent.
Maximum penalty—10 penalty units.
pt.2-div.2 Trust account receipts and deposits
Trust account receipts and deposits
sec.6 Register of trust account receipt forms
sec.6 Register of trust account receipt forms
A register of trust account receipt forms must—
contain a record of the receipt number of each receipt form held by the principal agent; and
be updated within 2 business days of a trust account receipt form being brought into use for the operation of a trust account.
(a) contain a record of the receipt number of each receipt form held by the principal agent; and
(b) be updated within 2 business days of a trust account receipt form being brought into use for the operation of a trust account.
sec.7 Heading on trust account receipt forms
sec.7 Heading on trust account receipt forms
Each trust account receipt form must be—
clearly headed ‘Agents Financial Administration Act 2014 Trust Account Receipt’; and
consecutively and uniquely numbered.
A duplicate trust account receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
(sec.7-ssec.1) Each trust account receipt form must be— clearly headed ‘Agents Financial Administration Act 2014 Trust Account Receipt’; and consecutively and uniquely numbered.
(sec.7-ssec.2) A duplicate trust account receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
sec.8 Obligation to complete a trust account receipt form
sec.8 Obligation to complete a trust account receipt form
A principal agent must complete a trust account receipt form—
if a principal agent receives trust money by direct deposit or electronic funds transfer—on the day the principal agent becomes aware of the receipt of the trust money; or
otherwise—immediately on receiving the trust money.
Maximum penalty—10 penalty units.
(a) if a principal agent receives trust money by direct deposit or electronic funds transfer—on the day the principal agent becomes aware of the receipt of the trust money; or
(b) otherwise—immediately on receiving the trust money.
sec.9 Completed trust account receipt form to contain particular information
sec.9 Completed trust account receipt form to contain particular information
Each trust account receipt form must contain the following particulars—
the name of the principal agent on whose behalf the receipt is completed;
the agent’s licence number;
the date—
the trust money was received; and
the receipt is completed;
the name of the person completing the receipt form and, if the receipt form is from a receipt book or is a hard copy of a computer entry, the person’s signature;
the name of the person for whom the receipt is completed;
the name of, or other means of identifying, the person on whose behalf the trust money is received;
using a code to identify the person, for example, S4 stands for N. Smith
a brief description of the matter for which the trust money is received;
the amount of trust money received, expressed in figures;
how the trust money was received, for example, in cash, by cheque, by direct deposit or by electronic funds transfer;
if the trust money received is rent—
the address of the rented premises; and
the day up to which the rent is paid;
if the trust money received is payment from a prospective buyer for an option to purchase a used motor vehicle for sale on consignment, the vehicle’s—
make; and
body model; and
colour; and
engine number or, if the vehicle is a caravan, the chassis number; and
identification number; and
registration number; and
built date.
In this section—
built date see the Motor Dealers and Chattel Auctioneers Act 2014 , schedule 1 , section 3C .
s 9 amd 2021 SL No. 170 s 4
(sec.9-ssec.1) Each trust account receipt form must contain the following particulars— the name of the principal agent on whose behalf the receipt is completed; the agent’s licence number; the date— the trust money was received; and the receipt is completed; the name of the person completing the receipt form and, if the receipt form is from a receipt book or is a hard copy of a computer entry, the person’s signature; the name of the person for whom the receipt is completed; the name of, or other means of identifying, the person on whose behalf the trust money is received; using a code to identify the person, for example, S4 stands for N. Smith a brief description of the matter for which the trust money is received; the amount of trust money received, expressed in figures; how the trust money was received, for example, in cash, by cheque, by direct deposit or by electronic funds transfer; if the trust money received is rent— the address of the rented premises; and the day up to which the rent is paid; if the trust money received is payment from a prospective buyer for an option to purchase a used motor vehicle for sale on consignment, the vehicle’s— make; and body model; and colour; and engine number or, if the vehicle is a caravan, the chassis number; and identification number; and registration number; and built date.
(sec.9-ssec.2) In this section— built date see the Motor Dealers and Chattel Auctioneers Act 2014 , schedule 1 , section 3C .
(a) the name of the principal agent on whose behalf the receipt is completed;
(b) the agent’s licence number;
(c) the date— (i) the trust money was received; and (ii) the receipt is completed;
(i) the trust money was received; and
(ii) the receipt is completed;
(d) the name of the person completing the receipt form and, if the receipt form is from a receipt book or is a hard copy of a computer entry, the person’s signature;
(e) the name of the person for whom the receipt is completed;
(f) the name of, or other means of identifying, the person on whose behalf the trust money is received; Example of a way by which the name of a person can be identified— using a code to identify the person, for example, S4 stands for N. Smith
(g) a brief description of the matter for which the trust money is received;
(h) the amount of trust money received, expressed in figures;
(i) how the trust money was received, for example, in cash, by cheque, by direct deposit or by electronic funds transfer;
(j) if the trust money received is rent— (i) the address of the rented premises; and (ii) the day up to which the rent is paid;
(i) the address of the rented premises; and
(ii) the day up to which the rent is paid;
(k) if the trust money received is payment from a prospective buyer for an option to purchase a used motor vehicle for sale on consignment, the vehicle’s— (i) make; and (ii) body model; and (iii) colour; and (iv) engine number or, if the vehicle is a caravan, the chassis number; and (v) identification number; and (vi) registration number; and (vii) built date.
(i) make; and
(ii) body model; and
(iii) colour; and
(iv) engine number or, if the vehicle is a caravan, the chassis number; and
(v) identification number; and
(vi) registration number; and
(vii) built date.
(i) the trust money was received; and
(ii) the receipt is completed;
(i) the address of the rented premises; and
(ii) the day up to which the rent is paid;
(i) make; and
(ii) body model; and
(iii) colour; and
(iv) engine number or, if the vehicle is a caravan, the chassis number; and
This is an opening excerpt, not the complete document.