Sets mandatory rules for how trustees must handle client trust money: it prescribes the specific books, receipts, deposit and cheque procedures, monthly reconciliations, investment accounting, computer record‑keeping and audit/reporting steps trustees must follow. It also names the supervising entity for funeral‑benefit trustees and requires auditors to hold minimum insurance. Affects trustees, their auditors and supervising entities; trustees bear the compliance costs and face monetary penalties for breaches.
Mechanically, the Trust Accounts Regulation 1999 prescribes detailed record-keeping, accounting, investment, audit and computer-system obligations for trustees who hold trust money, establishes the supervising entity for trustees in a specific context, and sets a minimum professional indemnity insurance requirement for auditors appointed under the Act. The Regulation specifies the exact books, forms and ledger structure trustees must keep (s 3, ss divs 1-9), prescribes the format and handling of trust account receipt and deposit forms (ss 4-9), limits disbursements to cleared funds and prescribes cheque and cheque-butt particulars (s 10), requires prompt cash-book entries and ledger posting (ss 11, 15), mandates monthly reconciliations with prescribed particulars (s 12), and requires separate ledger accounts per matter for each person (s 13-14). It sets out how trustees must record and handle investments (ss 16-20), allows transfers by journal entry subject to entitlement (s 21), imposes computerised-records specifications and backup/print requirements (s 22), defines auditor reporting and auditor-trustee document exchanges (ss 23-27), and prescribes a minimum professional indemnity insurance amount for auditors of $250,000 (s 28).
The Regulation also names the supervising entity for trustees in the funeral-benefit context. For the purposes of section 4E(2) of the Act, the registrar of funeral benefit businesses under the Funeral Benefit Business Act 1982, s 6, is declared to be the supervising entity for a trustee (s 2). The Regulation refers to the Funeral Benefit Business Act 1982, s 80, for related matters (s 2).
The instrument operationalises parts of the principal Act by setting form, timing and evidentiary rules that govern day-to-day trust-account operations. It creates compulsory process flows: money must be receipted on prescribed forms (s 5), deposited with documentary evidence (s 9), entered in cash books within short deadlines (s 11), posted to ledger accounts promptly (s 15), and reconciled monthly with specified disclosure items (s 12). Investments require written authority and prompt recording (s 16), must be channelled via the trustee’s general trust account before investment or before paying proceeds out (s 19), and any accrued interest must be treated and recorded as trust money (ss 17, 20). Computer systems used to hold these records must satisfy backup, auditability and non‑erasability requirements (s 22). Auditors must follow specified reporting content (s 23) and auditing standards (s 26), and trustees must retain and make auditor reports available (ss 23-25). The Regulation applies penalties for non‑compliance, typically expressed as maximum penalty units (for example, 10 penalty units for many record‑keeping breaches; 5 penalty units for certain receipt destruction notification contraventions, s 7).
Current sections
Direct links to the current provisions in Trust Accounts Regulation 1999.
62
pt.1
Preliminary
Preliminary
sec.1
Short title
sec.1 Short title
This regulation may be cited as the Trust Accounts Regulation 1999 .
pt.1A
sec.1A
Section sec.1A
s 1A ins 2004 SL No. 109 s 35
om 2024 SL No. 22 s 6
pt.2
Supervising entity
Supervising entity
sec.2
Supervising entity for trustees— Act , s 4E
sec.2 Supervising entity for trustees— Act , s 4E
For section 4E (2) of the Act , the registrar of funeral benefit businesses under the Funeral Benefit Business Act 1982 , section 6 , is declared to be the supervising entity for a trustee.
See also the Funeral Benefit Business Act 1982 , section 80 .
s 2 sub 2003 SL No. 305 s 25 ; 2024 SL No. 22 s 6
sec.2A
Section sec.2A
s 2A ins 2003 SL No. 305 s 25
om 2024 SL No. 22 s 6
pt.3
Record keeping
Record keeping
pt.3-div.1
Prescribed books, accounts and records
Prescribed books, accounts and records
sec.3
Books, accounts and records to be kept by trustees
sec.3 Books, accounts and records to be kept by trustees
A trustee must keep the following books, accounts and records—
a register of trust account receipt forms;
a trust account receipt book of consecutively machine numbered receipt forms in duplicate;
a trust account deposit book of trust account deposit forms in duplicate;
a trust account cash book;
a trust account journal of consecutively machine numbered folios;
a trust account ledger;
a trust account investment ledger.
(a) a register of trust account receipt forms;
(b) a trust account receipt book of consecutively machine numbered receipt forms in duplicate;
(c) a trust account deposit book of trust account deposit forms in duplicate;
(d) a trust account cash book;
(e) a trust account journal of consecutively machine numbered folios;
(f) a trust account ledger;
(g) a trust account investment ledger.
pt.3-div.2
Register of trust account receipt forms
Register of trust account receipt forms
sec.4
Register
sec.4 Register
A register of trust account receipt forms must contain a record of the receipt number of each receipt form held by the trustee.
pt.3-div.3
Trust account receipt books
Trust account receipt books
sec.5
Receipt forms
sec.5 Receipt forms
A receipt form must be headed ‘Trust Account Receipt’, and a completed receipt form must contain the following particulars—
the name of the trustee on whose behalf the receipt is given;
the date the receipt is given;
the name of the person to whom the receipt is given;
the name of the person on whose behalf the trust moneys are received;
a brief description of the matter for which the trust moneys are received;
the amount of trust moneys received, in words and figures;
how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer;
the signature of the person giving the receipt.
Each receipt form must include provision for the particulars mentioned in subsection (1) .
A duplicate receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
(sec.5-ssec.1) A receipt form must be headed ‘Trust Account Receipt’, and a completed receipt form must contain the following particulars— the name of the trustee on whose behalf the receipt is given; the date the receipt is given; the name of the person to whom the receipt is given; the name of the person on whose behalf the trust moneys are received; a brief description of the matter for which the trust moneys are received; the amount of trust moneys received, in words and figures; how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer; the signature of the person giving the receipt.
(sec.5-ssec.2) Each receipt form must include provision for the particulars mentioned in subsection (1) .
(sec.5-ssec.3) A duplicate receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
(a) the name of the trustee on whose behalf the receipt is given;
(b) the date the receipt is given;
(c) the name of the person to whom the receipt is given;
(d) the name of the person on whose behalf the trust moneys are received;
(e) a brief description of the matter for which the trust moneys are received;
(f) the amount of trust moneys received, in words and figures;
(g) how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer;
(h) the signature of the person giving the receipt.
sec.6
Dealing with trust account receipt forms
sec.6 Dealing with trust account receipt forms
A trustee must ensure—
a trust account receipt form—
is used only for the receipt of trust moneys; and
includes the particulars mentioned in section 5 (1) ; and
is given to the person from whom trust moneys are received; and
a legible copy of each trust account receipt form given by the trustee is kept securely in the trustee’s records; and
if the trustee cancels a receipt form, the form is kept securely in the trustee’s records.
Maximum penalty—10 penalty units.
(a) a trust account receipt form— (i) is used only for the receipt of trust moneys; and (ii) includes the particulars mentioned in section 5 (1) ; and (iii) is given to the person from whom trust moneys are received; and
(i) is used only for the receipt of trust moneys; and
(ii) includes the particulars mentioned in section 5 (1) ; and
(iii) is given to the person from whom trust moneys are received; and
(b) a legible copy of each trust account receipt form given by the trustee is kept securely in the trustee’s records; and
(c) if the trustee cancels a receipt form, the form is kept securely in the trustee’s records.
(i) is used only for the receipt of trust moneys; and
(ii) includes the particulars mentioned in section 5 (1) ; and
(iii) is given to the person from whom trust moneys are received; and
sec.7
Trustee may destroy unused receipt forms
sec.7 Trustee may destroy unused receipt forms
This section applies if an auditor who audits a trustee’s records and trust accounts under the Act reasonably believes the trustee does not intend to use a receipt form.
The auditor may give the trustee a written direction to destroy the receipt form.
The trustee must not contravene the direction.
Maximum penalty—5 penalty units.
If the auditor gives a trustee a written direction to destroy a receipt form, the auditor must, as soon as practicable after giving the direction, give to the supervising entity a notice stating—
the trustee’s name and address; and
the trustee’s general trust account name and number; and
the number of the receipt form.
Maximum penalty—5 penalty units.
In this section—
reasonably believes means believes on grounds that are reasonable in the circumstances.
(sec.7-ssec.1) This section applies if an auditor who audits a trustee’s records and trust accounts under the Act reasonably believes the trustee does not intend to use a receipt form.
(sec.7-ssec.2) The auditor may give the trustee a written direction to destroy the receipt form.
(sec.7-ssec.3) The trustee must not contravene the direction. Maximum penalty—5 penalty units.
(sec.7-ssec.4) If the auditor gives a trustee a written direction to destroy a receipt form, the auditor must, as soon as practicable after giving the direction, give to the supervising entity a notice stating— the trustee’s name and address; and the trustee’s general trust account name and number; and the number of the receipt form. Maximum penalty—5 penalty units.
(sec.7-ssec.5) In this section— reasonably believes means believes on grounds that are reasonable in the circumstances.
(a) the trustee’s name and address; and
(b) the trustee’s general trust account name and number; and
(c) the number of the receipt form.
pt.3-div.4
Trust account deposit book
Trust account deposit book
sec.8
Trust account deposit forms
sec.8 Trust account deposit forms
A trust account deposit form must contain the following particulars—
the name and account number of the trust account into which the trust moneys are deposited;
the amount and the date of the deposit;
the number of the trust account receipt form given by the trustee for the trust moneys;
the signature of the depositor.
(a) the name and account number of the trust account into which the trust moneys are deposited;
(b) the amount and the date of the deposit;
(c) the number of the trust account receipt form given by the trustee for the trust moneys;
(d) the signature of the depositor.
sec.9
Depositing trust moneys
sec.9 Depositing trust moneys
If a trustee deposits trust moneys into a trust account, the trustee must ensure—
if the trust moneys are deposited other than by way of electronic funds transfer—a copy of the trust account deposit form is kept securely in the trustee’s records; and
if the trust moneys are deposited by way of electronic funds transfer—
the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and
the document is kept securely in the trustee’s records.
Maximum penalty—10 penalty units.
(a) if the trust moneys are deposited other than by way of electronic funds transfer—a copy of the trust account deposit form is kept securely in the trustee’s records; and
(b) if the trust moneys are deposited by way of electronic funds transfer— (i) the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and (ii) the document is kept securely in the trustee’s records.
(i) the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and
(ii) the document is kept securely in the trustee’s records.
(i) the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and
(ii) the document is kept securely in the trustee’s records.
pt.3-div.5
Disbursement of trust moneys
Disbursement of trust moneys
sec.10
Disbursements
sec.10 Disbursements
A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless—
the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and
if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by—
if the trustee is an individual—the trustee or a person appointed by the trustee; or
if the trustee is a partnership—a partner.
Maximum penalty—10 penalty units.
If the trustee draws a cheque under section 12 (1) of the Act , the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document—
the date the cheque is drawn;
the name of the person to whom the cheque is made 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 withdrawn.
Maximum penalty—10 penalty units.
Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on—
the trustee’s cheque; and
the trustee’s cheque butt or other document.
Maximum penalty—10 penalty units.
A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records.
a cheque requisition form
s 10 amd 2024 SL No. 22 s 7
(sec.10-ssec.1) A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless— the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by— if the trustee is an individual—the trustee or a person appointed by the trustee; or if the trustee is a partnership—a partner. Maximum penalty—10 penalty units.
(sec.10-ssec.2) If the trustee draws a cheque under section 12 (1) of the Act , the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document— the date the cheque is drawn; the name of the person to whom the cheque is made 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 withdrawn. Maximum penalty—10 penalty units.
(sec.10-ssec.3) Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on— the trustee’s cheque; and the trustee’s cheque butt or other document. Maximum penalty—10 penalty units.
(sec.10-ssec.4) A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records. a cheque requisition form
(a) the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and
(b) if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by— (i) if the trustee is an individual—the trustee or a person appointed by the trustee; or (ii) if the trustee is a partnership—a partner.
(i) if the trustee is an individual—the trustee or a person appointed by the trustee; or
(ii) if the trustee is a partnership—a partner.
(i) if the trustee is an individual—the trustee or a person appointed by the trustee; or
(ii) if the trustee is a partnership—a partner.
(a) the date the cheque is drawn;
(b) the name of the person to whom the cheque is made 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 withdrawn.
(a) the trustee’s cheque; and
(b) the trustee’s cheque butt or other document.
pt.3-div.6
Trust account cash book
Trust account cash book
sec.11
Trust account cash book—entries
sec.11 Trust account cash book—entries
If a trustee receives trust moneys, or pays trust moneys to someone, the trustee must, within 2 days after the day the moneys are received or paid, enter the following particulars in the trust account cash book—
if trust moneys are received—
the date the moneys are received; and
the name of the person from whom the moneys are received; and
the name of the person on whose behalf the moneys are received; and
a brief description of the matter for which the moneys are received; and
the amount received; and
the date the trust moneys are paid into the trust account;
if trust moneys are paid—
the date the moneys are paid; and
the name of the person to whom the moneys are paid; and
the name of the person on whose behalf the moneys are paid; and
a brief description of the matter for which the moneys are paid; and
the amount paid.
Maximum penalty—10 penalty units.
However, if a trustee receives trust moneys by way of electronic funds transfer, the trustee may enter the particulars in the trust account cash book on the day the trustee becomes aware of the receipt.
(sec.11-ssec.1) If a trustee receives trust moneys, or pays trust moneys to someone, the trustee must, within 2 days after the day the moneys are received or paid, enter the following particulars in the trust account cash book— if trust moneys are received— the date the moneys are received; and the name of the person from whom the moneys are received; and the name of the person on whose behalf the moneys are received; and a brief description of the matter for which the moneys are received; and the amount received; and the date the trust moneys are paid into the trust account; if trust moneys are paid— the date the moneys are paid; and the name of the person to whom the moneys are paid; and the name of the person on whose behalf the moneys are paid; and a brief description of the matter for which the moneys are paid; and the amount paid. Maximum penalty—10 penalty units.
(sec.11-ssec.2) However, if a trustee receives trust moneys by way of electronic funds transfer, the trustee may enter the particulars in the trust account cash book on the day the trustee becomes aware of the receipt.
(a) if trust moneys are received— (i) the date the moneys are received; and (ii) the name of the person from whom the moneys are received; and (iii) the name of the person on whose behalf the moneys are received; and (iv) a brief description of the matter for which the moneys are received; and (v) the amount received; and (vi) the date the trust moneys are paid into the trust account;
(i) the date the moneys are received; and
(ii) the name of the person from whom the moneys are received; and
(iii) the name of the person on whose behalf the moneys are received; and
(iv) a brief description of the matter for which the moneys are received; and
(v) the amount received; and
(vi) the date the trust moneys are paid into the trust account;
(b) if trust moneys are paid— (i) the date the moneys are paid; and (ii) the name of the person to whom the moneys are paid; and (iii) the name of the person on whose behalf the moneys are paid; and (iv) a brief description of the matter for which the moneys are paid; and (v) the amount paid.
(i) the date the moneys are paid; and
(ii) the name of the person to whom the moneys are paid; and
(iii) the name of the person on whose behalf the moneys are paid; and
(iv) a brief description of the matter for which the moneys are paid; and
(v) the amount paid.
(i) the date the moneys are received; and
(ii) the name of the person from whom the moneys are received; and
(iii) the name of the person on whose behalf the moneys are received; and
(iv) a brief description of the matter for which the moneys are received; and
(v) the amount received; and
(vi) the date the trust moneys are paid into the trust account;
(i) the date the moneys are paid; and
(ii) the name of the person to whom the moneys are paid; and
(iii) the name of the person on whose behalf the moneys are paid; and
(iv) a brief description of the matter for which the moneys are paid; and
(v) the amount paid.
sec.12
Trust account cash book—reconciliation
sec.12 Trust account cash book—reconciliation
A trustee must, as soon as practicable after the end of each month—
balance and reconcile the trust account cash book balance at the end of the month with the trust account ledger; and
reconcile the financial institution’s statement balance for the trustee’s trust account at the end of the month with the trust account cash book balance at the end of the month.
Maximum penalty—10 penalty units.
A reconciliation under subsection (1) (b) must contain the following particulars—
the balance of the financial institution statement balance at the end of the month;
the amount of trust moneys on hand at the end of the month and the date the moneys were received;
the amount of each outstanding deposit at the end of the month and the date the amount was received and deposited;
details of any outstanding cheques at the end of the month, including—
the cheque number of each cheque; and
the amount and date of each cheque;
the balance of the trust account at the end of the month as shown in the trust account cash book.
For a reconciliation under subsection (1) (b) , the trustee must reconcile the trust account cash book balance at the end of the month with the amount obtained by—
adding the amounts mentioned in subsection (2) (b) and (c) to the financial institution statement balance amount at the end of the month; and
deducting the amount of each outstanding cheque at the end of the month from the amount obtained under paragraph (a) .
The trustee must keep the reconciliations mentioned in subsection (1) securely in the trustee’s records.
(sec.12-ssec.1) A trustee must, as soon as practicable after the end of each month— balance and reconcile the trust account cash book balance at the end of the month with the trust account ledger; and reconcile the financial institution’s statement balance for the trustee’s trust account at the end of the month with the trust account cash book balance at the end of the month. Maximum penalty—10 penalty units.
(sec.12-ssec.2) A reconciliation under subsection (1) (b) must contain the following particulars— the balance of the financial institution statement balance at the end of the month; the amount of trust moneys on hand at the end of the month and the date the moneys were received; the amount of each outstanding deposit at the end of the month and the date the amount was received and deposited; details of any outstanding cheques at the end of the month, including— the cheque number of each cheque; and the amount and date of each cheque; the balance of the trust account at the end of the month as shown in the trust account cash book.
(sec.12-ssec.3) For a reconciliation under subsection (1) (b) , the trustee must reconcile the trust account cash book balance at the end of the month with the amount obtained by— adding the amounts mentioned in subsection (2) (b) and (c) to the financial institution statement balance amount at the end of the month; and deducting the amount of each outstanding cheque at the end of the month from the amount obtained under paragraph (a) .
(sec.12-ssec.4) The trustee must keep the reconciliations mentioned in subsection (1) securely in the trustee’s records.
(a) balance and reconcile the trust account cash book balance at the end of the month with the trust account ledger; and
(b) reconcile the financial institution’s statement balance for the trustee’s trust account at the end of the month with the trust account cash book balance at the end of the month.
(a) the balance of the financial institution statement balance at the end of the month;
(b) the amount of trust moneys on hand at the end of the month and the date the moneys were received;
(c) the amount of each outstanding deposit at the end of the month and the date the amount was received and deposited;
(d) details of any outstanding cheques at the end of the month, including— (i) the cheque number of each cheque; and (ii) the amount and date of each cheque;
(i) the cheque number of each cheque; and
(ii) the amount and date of each cheque;
(e) the balance of the trust account at the end of the month as shown in the trust account cash book.
(i) the cheque number of each cheque; and
(ii) the amount and date of each cheque;
(a) adding the amounts mentioned in subsection (2) (b) and (c) to the financial institution statement balance amount at the end of the month; and
(b) deducting the amount of each outstanding cheque at the end of the month from the amount obtained under paragraph (a) .
pt.3-div.7
Trust account ledger
Trust account ledger
sec.13
Keeping trust account ledgers
sec.13 Keeping trust account ledgers
A trustee must keep a separate ledger account in the trust account ledger for each matter conducted for each person on whose behalf the trustee receives trust moneys.
Maximum penalty—10 penalty units.
sec.14
Trust account ledger—form
sec.14 Trust account ledger—form
Each trust ledger account must contain the following particulars—
the surname and initials of the person on whose behalf the trust moneys are received or paid;
a brief description of the matter for which the trust moneys are received or paid.
Also, each trust ledger account must contain the following particulars for each entry in the ledger account—
the date the trust moneys are received or paid;
the name of the person from whom the trust moneys are received or to whom the trust moneys are paid;
a brief description of the matter for which the trust moneys are received or paid;
the amount received or paid;
if trust moneys are received—the receipt number;
if trust moneys are paid—the cheque number;
the balance of the account after each entry;
if trust moneys are transferred to the trust ledger account from another trust ledger account under section 21 —the number of the trust account journal folio on which the transfer is recorded.
(sec.14-ssec.1) Each trust ledger account must contain the following particulars— the surname and initials of the person on whose behalf the trust moneys are received or paid; a brief description of the matter for which the trust moneys are received or paid.
(sec.14-ssec.2) Also, each trust ledger account must contain the following particulars for each entry in the ledger account— the date the trust moneys are received or paid; the name of the person from whom the trust moneys are received or to whom the trust moneys are paid; a brief description of the matter for which the trust moneys are received or paid; the amount received or paid; if trust moneys are received—the receipt number; if trust moneys are paid—the cheque number; the balance of the account after each entry; if trust moneys are transferred to the trust ledger account from another trust ledger account under section 21 —the number of the trust account journal folio on which the transfer is recorded.
(a) the surname and initials of the person on whose behalf the trust moneys are received or paid;
(b) a brief description of the matter for which the trust moneys are received or paid.
(a) the date the trust moneys are received or paid;
(b) the name of the person from whom the trust moneys are received or to whom the trust moneys are paid;
(c) a brief description of the matter for which the trust moneys are received or paid;
(d) the amount received or paid;
(e) if trust moneys are received—the receipt number;
(f) if trust moneys are paid—the cheque number;
(g) the balance of the account after each entry;
(h) if trust moneys are transferred to the trust ledger account from another trust ledger account under section 21 —the number of the trust account journal folio on which the transfer is recorded.
sec.15
Trust account cash book entries to be posted to ledger account
sec.15 Trust account cash book entries to be posted to ledger account
A trustee must 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 moneys are received or paid within 2 days after the day the trust moneys are received or paid.
Maximum penalty—10 penalty units.
pt.3-div.8
Records of investments
Records of investments
sec.16
Trustee to keep records of investments
sec.16 Trustee to keep records of investments
This section applies if a person entitled to trust moneys held by a trustee gives to the trustee a written authority to invest the trust moneys.
The trustee must—
within 2 days after receiving the authority, invest the moneys in accordance with the authority; and
keep a trust account investment ledger containing the following records—
an investment control account for all trust moneys invested by the trustee;
an investment ledger account for each person on whose behalf an investment is made.
Maximum penalty—10 penalty units.
(sec.16-ssec.1) This section applies if a person entitled to trust moneys held by a trustee gives to the trustee a written authority to invest the trust moneys.
(sec.16-ssec.2) The trustee must— within 2 days after receiving the authority, invest the moneys in accordance with the authority; and keep a trust account investment ledger containing the following records— an investment control account for all trust moneys invested by the trustee; an investment ledger account for each person on whose behalf an investment is made. Maximum penalty—10 penalty units.
(a) within 2 days after receiving the authority, invest the moneys in accordance with the authority; and
(b) keep a trust account investment ledger containing the following records— (i) an investment control account for all trust moneys invested by the trustee; (ii) an investment ledger account for each person on whose behalf an investment is made.
(i) an investment control account for all trust moneys invested by the trustee;
(ii) an investment ledger account for each person on whose behalf an investment is made.
(i) an investment control account for all trust moneys invested by the trustee;
(ii) an investment ledger account for each person on whose behalf an investment is made.
sec.17
How trustee accounts for investments
sec.17 How trustee accounts for investments
A trustee must, for each amount invested by the trustee under section 16 (2) (a) —
credit the amount of the investment to the investment control account; and
debit the amount to the investment ledger account.
If interest accrues on an investment, the trustee must—
credit the amount of accrued interest to the investment control account; and
debit the amount to the investment ledger account.
The interest accruing on an investment must be entered in the accounts when the trustee receives notice of the accrual.
If an amount is withdrawn from, or realised on, an investment, the trustee must—
debit the amount to the investment control account; and
credit the amount to the investment ledger account.
In this section—
investment ledger account means the investment ledger account kept by the trustee in the name of the person on whose behalf the investment is made.
(sec.17-ssec.1) A trustee must, for each amount invested by the trustee under section 16 (2) (a) — credit the amount of the investment to the investment control account; and debit the amount to the investment ledger account.
(sec.17-ssec.2) If interest accrues on an investment, the trustee must— credit the amount of accrued interest to the investment control account; and debit the amount to the investment ledger account.
(sec.17-ssec.3) The interest accruing on an investment must be entered in the accounts when the trustee receives notice of the accrual.
(sec.17-ssec.4) If an amount is withdrawn from, or realised on, an investment, the trustee must— debit the amount to the investment control account; and credit the amount to the investment ledger account.
(sec.17-ssec.5) In this section— investment ledger account means the investment ledger account kept by the trustee in the name of the person on whose behalf the investment is made.
(a) credit the amount of the investment to the investment control account; and
(b) debit the amount to the investment ledger account.
(a) credit the amount of accrued interest to the investment control account; and
(b) debit the amount to the investment ledger account.
(a) debit the amount to the investment control account; and
(b) credit the amount to the investment ledger account.
sec.18
Particulars of investment control account and investment ledger accounts
sec.18 Particulars of investment control account and investment ledger accounts
A trustee must, for each amount invested by the trustee under section 16 (2) (a) , enter the following particulars in the investment control account—
the date an amount is credited or debited to the investment control account;
the name of the investment ledger account to which the amount credited or debited relates;
each amount credited or debited to the investment control account;
the balance of the investment control account after each entry.
Maximum penalty—10 penalty units.
A trustee must, for each amount invested by the trustee under section 16 (2) (a) , enter the following particulars in the investment ledger account for the person on whose behalf the investment is made—
the full name in which the investment is made;
a brief description of the investment, including details that readily identify its nature and location;
the date it is made;
each amount debited or credited to the account;
the balance of the account after each entry.
Maximum penalty—10 penalty units.
(sec.18-ssec.1) A trustee must, for each amount invested by the trustee under section 16 (2) (a) , enter the following particulars in the investment control account— the date an amount is credited or debited to the investment control account; the name of the investment ledger account to which the amount credited or debited relates; each amount credited or debited to the investment control account; the balance of the investment control account after each entry. Maximum penalty—10 penalty units.
(sec.18-ssec.2) A trustee must, for each amount invested by the trustee under section 16 (2) (a) , enter the following particulars in the investment ledger account for the person on whose behalf the investment is made— the full name in which the investment is made; a brief description of the investment, including details that readily identify its nature and location; the date it is made; each amount debited or credited to the account; the balance of the account after each entry. Maximum penalty—10 penalty units.
(a) the date an amount is credited or debited to the investment control account;
(b) the name of the investment ledger account to which the amount credited or debited relates;
(c) each amount credited or debited to the investment control account;
(d) the balance of the investment control account after each entry.
(a) the full name in which the investment is made;
(b) a brief description of the investment, including details that readily identify its nature and location;
(c) the date it is made;
(d) each amount debited or credited to the account;
(e) the balance of the account after each entry.
sec.19
Dealing with investments
sec.19 Dealing with investments
If a trustee intends to invest trust moneys for a person, the trustee must, before investing the trust moneys, deposit the amount to be invested into the trustee’s general trust account.
Maximum penalty—10 penalty units.
If a trustee withdraws trust moneys from an investment account for a person, the trustee must, before paying the trust moneys to the person, deposit the amount to be paid into the trustee’s general trust account.
Maximum penalty—10 penalty units.
(sec.19-ssec.1) If a trustee intends to invest trust moneys for a person, the trustee must, before investing the trust moneys, deposit the amount to be invested into the trustee’s general trust account. Maximum penalty—10 penalty units.
(sec.19-ssec.2) If a trustee withdraws trust moneys from an investment account for a person, the trustee must, before paying the trust moneys to the person, deposit the amount to be paid into the trustee’s general trust account. Maximum penalty—10 penalty units.
sec.20
Interest on investments
sec.20 Interest on investments
A trustee must ensure that interest accruing on trust moneys invested by the trustee is—
added to the trust moneys; and
dealt with by the trustee as trust moneys.
Maximum penalty—10 penalty units.
(a) added to the trust moneys; and
(b) dealt with by the trustee as trust moneys.
pt.3-div.9
Trust account journals
Trust account journals
sec.21
Transfer by journal entry
sec.21 Transfer by journal entry
A trustee may transfer trust moneys from a trust ledger account to another trust ledger account by a journal entry.
However, a trustee must not transfer trust moneys by a journal entry unless the trustee is entitled to pay the moneys from the trust account for the purpose for which it is transferred.
Maximum penalty—10 penalty units.
A trustee must ensure that a trust account journal includes the following particulars for each entry in the journal—
the date the trust moneys are transferred;
the name of the person, and a brief description of the matter conducted for the person, from whose trust ledger account the moneys are transferred;
the name of the person, and a brief description of the matter conducted for the person, to whose trust ledger account the moneys are transferred;
the amount transferred;
a brief description of the matter for which the moneys are transferred;
the signature of the trustee, or authorised signatory to the trust account, authorising the transfer.
Maximum penalty—10 penalty units.
(sec.21-ssec.1) A trustee may transfer trust moneys from a trust ledger account to another trust ledger account by a journal entry.
(sec.21-ssec.2) However, a trustee must not transfer trust moneys by a journal entry unless the trustee is entitled to pay the moneys from the trust account for the purpose for which it is transferred. Maximum penalty—10 penalty units.
(sec.21-ssec.3) A trustee must ensure that a trust account journal includes the following particulars for each entry in the journal— the date the trust moneys are transferred; the name of the person, and a brief description of the matter conducted for the person, from whose trust ledger account the moneys are transferred; the name of the person, and a brief description of the matter conducted for the person, to whose trust ledger account the moneys are transferred; the amount transferred; a brief description of the matter for which the moneys are transferred; the signature of the trustee, or authorised signatory to the trust account, authorising the transfer. Maximum penalty—10 penalty units.
(a) the date the trust moneys are transferred;
(b) the name of the person, and a brief description of the matter conducted for the person, from whose trust ledger account the moneys are transferred;
(c) the name of the person, and a brief description of the matter conducted for the person, to whose trust ledger account the moneys are transferred;
(d) the amount transferred;
(e) a brief description of the matter for which the moneys are transferred;
(f) the signature of the trustee, or authorised signatory to the trust account, authorising the transfer.
pt.3-div.10
Computer system records
Computer system records
sec.22
Keeping computer system records
sec.22 Keeping computer system records
This section applies if a trustee keeps any books, accounts or records mentioned in section 3 by a computerised accounting system.
The trustee must ensure that—
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 fire-proof location that is unaffected by magnetic interference or other thing that may adversely affect the stored information; and
the computer 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 in a visible form; and
an amendment to the particulars of a transaction recorded on the computer system is made by a separate transaction recorded on the system; and
a report, or each page or entry in a report generated by the computer system is numbered sequentially under the computer program control in a way that enables the completeness of the record to be conveniently audited; and
if an entry in a trust ledger account results in a debit balance in the account—a contemporaneous record of the transaction is made and the computer system is able to produce, in visible form and on demand, a separate chronological report of each transaction that results in a debit balance; and
a record of information produced by the computer in a visible form is produced in chronological sequence.
Maximum penalty—10 penalty units.
The computer system must be capable of keeping a record in chronological sequence of any change (by creation, amendment or deletion) to the following information—
the name and address of a person for whom trust moneys are held;
the description of a matter being conducted by the trustee;
the amount of trust moneys held for a person by the trustee;
the financial institution account number of a trust account.
The trustee must, as soon as practicable after the end of each month, make a print-out of the following—
a cash book containing details of receipts and payments for the month including the cash book balance at the end of the month;
if a trust ledger account is kept by a computerised accounting system—the balance of the ledger account;
if a trust account investment ledger is kept by a computerised accounting system—the reconciliation of the investment ledger;
if a trust account financial institution statement balance is reconciled with the trust account cash book balance by a computerised accounting system—the reconciliation of the financial institution statement.
Maximum penalty—10 penalty units.
If a trust account ledger or trust account investment ledger is kept by a computerised accounting system, a trustee must, immediately before a trust ledger account or investment ledger account is deleted from the computer system—
make a print-out of the ledger account; and
keep the print-out securely in the trustee’s records.
Maximum penalty—10 penalty units.
(sec.22-ssec.1) This section applies if a trustee keeps any books, accounts or records mentioned in section 3 by a computerised accounting system.
(sec.22-ssec.2) The trustee must ensure that— 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 fire-proof location that is unaffected by magnetic interference or other thing that may adversely affect the stored information; and the computer 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 in a visible form; and an amendment to the particulars of a transaction recorded on the computer system is made by a separate transaction recorded on the system; and a report, or each page or entry in a report generated by the computer system is numbered sequentially under the computer program control in a way that enables the completeness of the record to be conveniently audited; and if an entry in a trust ledger account results in a debit balance in the account—a contemporaneous record of the transaction is made and the computer system is able to produce, in visible form and on demand, a separate chronological report of each transaction that results in a debit balance; and a record of information produced by the computer in a visible form is produced in chronological sequence. Maximum penalty—10 penalty units.
(sec.22-ssec.3) The computer system must be capable of keeping a record in chronological sequence of any change (by creation, amendment or deletion) to the following information— the name and address of a person for whom trust moneys are held; the description of a matter being conducted by the trustee; the amount of trust moneys held for a person by the trustee; the financial institution account number of a trust account.
(sec.22-ssec.4) The trustee must, as soon as practicable after the end of each month, make a print-out of the following— a cash book containing details of receipts and payments for the month including the cash book balance at the end of the month; if a trust ledger account is kept by a computerised accounting system—the balance of the ledger account; if a trust account investment ledger is kept by a computerised accounting system—the reconciliation of the investment ledger; if a trust account financial institution statement balance is reconciled with the trust account cash book balance by a computerised accounting system—the reconciliation of the financial institution statement. Maximum penalty—10 penalty units.
(sec.22-ssec.5) If a trust account ledger or trust account investment ledger is kept by a computerised accounting system, a trustee must, immediately before a trust ledger account or investment ledger account is deleted from the computer system— make a print-out of the ledger account; and keep the print-out securely in the trustee’s records. Maximum penalty—10 penalty units.
(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 fire-proof location that is unaffected by magnetic interference or other thing that may adversely affect the stored information; and
(d) the computer 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 in a visible form; and
(i) the account has a zero balance; and
(ii) a record of the account, as it was immediately before its deletion, is kept in a visible form; and
(e) an amendment to the particulars of a transaction recorded on the computer system is made by a separate transaction recorded on the system; and
(f) a report, or each page or entry in a report generated by the computer system is numbered sequentially under the computer program control in a way that enables the completeness of the record to be conveniently audited; and
(g) if an entry in a trust ledger account results in a debit balance in the account—a contemporaneous record of the transaction is made and the computer system is able to produce, in visible form and on demand, a separate chronological report of each transaction that results in a debit balance; and
(h) a record of information produced by the computer in a visible form 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 in a visible form; and
(a) the name and address of a person for whom trust moneys are held;
(b) the description of a matter being conducted by the trustee;
(c) the amount of trust moneys held for a person by the trustee;
(d) the financial institution account number of a trust account.
(a) a cash book containing details of receipts and payments for the month including the cash book balance at the end of the month;
(b) if a trust ledger account is kept by a computerised accounting system—the balance of the ledger account;
(c) if a trust account investment ledger is kept by a computerised accounting system—the reconciliation of the investment ledger;
(d) if a trust account financial institution statement balance is reconciled with the trust account cash book balance by a computerised accounting system—the reconciliation of the financial institution statement.
(a) make a print-out of the ledger account; and
(b) keep the print-out securely in the trustee’s records.
pt.4
Audits and examinations
Audits and examinations
sec.23
Auditor’s report
sec.23 Auditor’s report
For sections 16 (1) (b) and 19 (1) (b) of the Act , the information for an auditor’s report is the information stated in the schedule.
An auditor must, as soon as practicable after completing the report, give a copy of the report to the trustee.
Maximum penalty—10 penalty units.
(sec.23-ssec.1) For sections 16 (1) (b) and 19 (1) (b) of the Act , the information for an auditor’s report is the information stated in the schedule.
(sec.23-ssec.2) An auditor must, as soon as practicable after completing the report, give a copy of the report to the trustee. Maximum penalty—10 penalty units.
sec.24
Trustee to give copy of audit report to auditor
sec.24 Trustee to give copy of audit report to auditor
If an auditor gives a trustee a copy of the auditor’s report, the trustee must—
keep it securely in the trustee’s records; and
if asked by an auditor who next audits the trustee’s records and trust accounts to give it to the auditor—give it to the auditor unless the trustee has a reasonable excuse.
Maximum penalty—10 penalty units.
(a) keep it securely in the trustee’s records; and
(b) if asked by an auditor who next audits the trustee’s records and trust accounts to give it to the auditor—give it to the auditor unless the trustee has a reasonable excuse.
sec.25
Trustee may give statement instead of auditor’s report
sec.25 Trustee may give statement instead of auditor’s report
This section applies if an auditor audits a trustees records and trust accounts and either—
the trustee can not give the auditor a copy of an auditor’s report given to the trustee for the previous audit of the trustee’s records and accounts; or
it is the first time the records and accounts have been audited under the Act .
The trustee must, for each amount invested by the trustee under section 16 (2) (a) and held by the trustee on the first day of the period to which the audit relates, give the auditor a statement containing the following particulars—
the full name in which the investment is made;
the date it was made;
the amount of the investment;
a brief description of the investment, including particulars that readily identify its nature and location.
the name of the financial institution holding the investment
the financial institution account number of the investment
Maximum penalty—10 penalty units.
The trustee must give the statement to the auditor as soon as practicable before the auditor completes the auditor’s report for the audit.
The statement must be accompanied by a statutory declaration that—
states the information contained in the statement is correct; and
is made by—
if the trustee is an individual—the individual; or
if the trustee is a partnership—a partner.
(sec.25-ssec.1) This section applies if an auditor audits a trustees records and trust accounts and either— the trustee can not give the auditor a copy of an auditor’s report given to the trustee for the previous audit of the trustee’s records and accounts; or it is the first time the records and accounts have been audited under the Act .
(sec.25-ssec.2) The trustee must, for each amount invested by the trustee under section 16 (2) (a) and held by the trustee on the first day of the period to which the audit relates, give the auditor a statement containing the following particulars— the full name in which the investment is made; the date it was made; the amount of the investment; a brief description of the investment, including particulars that readily identify its nature and location. the name of the financial institution holding the investment the financial institution account number of the investment Maximum penalty—10 penalty units.
(sec.25-ssec.3) The trustee must give the statement to the auditor as soon as practicable before the auditor completes the auditor’s report for the audit.
(sec.25-ssec.4) The statement must be accompanied by a statutory declaration that— states the information contained in the statement is correct; and is made by— if the trustee is an individual—the individual; or if the trustee is a partnership—a partner.
(a) the trustee can not give the auditor a copy of an auditor’s report given to the trustee for the previous audit of the trustee’s records and accounts; or
(b) it is the first time the records and accounts have been audited under the Act .
(a) the full name in which the investment is made;
(b) the date it was made;
(c) the amount of the investment;
(d) a brief description of the investment, including particulars that readily identify its nature and location. Example of ‘particulars’ for paragraph (d) — 1 the name of the financial institution holding the investment 2 the financial institution account number of the investment
1 the name of the financial institution holding the investment
2 the financial institution account number of the investment
1 the name of the financial institution holding the investment
2 the financial institution account number of the investment
(a) states the information contained in the statement is correct; and
(b) is made by— (i) if the trustee is an individual—the individual; or (ii) if the trustee is a partnership—a partner.
(i) if the trustee is an individual—the individual; or
(ii) if the trustee is a partnership—a partner.
(i) if the trustee is an individual—the individual; or
(ii) if the trustee is a partnership—a partner.
sec.26
Auditing procedures and standards
sec.26 Auditing procedures and standards
For section 16 (10) of the Act , the auditing procedures and standards for an audit or unannounced examination are the procedures and standards in the Audit Standards and Audit Guidance Statements issued by the Auditing Standards Board of the Australian Accounting Research Foundation.
sec.27
Unannounced examination
sec.27 Unannounced examination
If an auditor conducts an unannounced examination under section 18 (1) of the Act , the records and accounts the auditor must examine are the records and accounts kept by the trustee in the examination period.
In this section—
examination period means the period—
from the end day of the later of—
the last audit of the trustee’s records and accounts; or
the last examination of the trustee’s records and accounts;
to the last day of the month immediately preceding the day the auditor first visited the trustee’s place of business for the examination.
(sec.27-ssec.1) If an auditor conducts an unannounced examination under section 18 (1) of the Act , the records and accounts the auditor must examine are the records and accounts kept by the trustee in the examination period.
(sec.27-ssec.2) In this section— examination period means the period— from the end day of the later of— the last audit of the trustee’s records and accounts; or the last examination of the trustee’s records and accounts; to the last day of the month immediately preceding the day the auditor first visited the trustee’s place of business for the examination.
(a) from the end day of the later of— (i) the last audit of the trustee’s records and accounts; or (ii) the last examination of the trustee’s records and accounts;
(i) the last audit of the trustee’s records and accounts; or
(ii) the last examination of the trustee’s records and accounts;
(b) to the last day of the month immediately preceding the day the auditor first visited the trustee’s place of business for the examination.
(i) the last audit of the trustee’s records and accounts; or
(ii) the last examination of the trustee’s records and accounts;
pt.5
Professional indemnity insurance
Professional indemnity insurance
sec.28
Prescribed amount
sec.28 Prescribed amount
A person appointed as an auditor under section 14 of the Act must have professional indemnity insurance in an amount not less than $250,000.
s 28 amd 2024 SL No. 22 s 8
pt.6
pt.6-div.1A
sec.28A
Section sec.28A
s 28A ins 2024 SL No. 22 s 9
exp 1 April 2026 (see s 35)
pt.6-div.1
sec.29
Section sec.29
s 29 amd 2024 SL No. 22 s 10
exp 1 April 2026 (see s 35)
pt.6-div.2
sec.30
Section sec.30
s 30 amd 2024 SL No. 22 s 11
exp 1 April 2026 (see s 35)
sec.31
Section sec.31
s 31 amd 2024 SL No. 22 s 12
exp 1 April 2026 (see s 35)
sec.32
Section sec.32
s 32 amd 2024 SL No. 22 s 13
exp 1 April 2026 (see s 35)
sec.33
Section sec.33
s 33 amd 2024 SL No. 22 s 14
exp 1 April 2026 (see s 35)
pt.6-div.3
sec.34
Section sec.34
s 34 sub 2024 SL No. 22 s 15
exp 1 April 2026 (see s 35)
pt.6-div.4
sec.35
Section sec.35
s 35 ins 2024 SL No. 22 s 15
exp 1 April 2026 (see s 35)
pt.7
sec.35-oc.2
Section sec.35-oc.2
s 35 exp 26 June 1999 (see s 35(2))
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 Trust Accounts Regulation 1999 .
Section sec.1A
s 1A ins 2004 SL No. 109 s 35
om 2024 SL No. 22 s 6
pt.2 Supervising entity
Supervising entity
sec.2 Supervising entity for trustees— Act , s 4E
sec.2 Supervising entity for trustees— Act , s 4E
For section 4E (2) of the Act , the registrar of funeral benefit businesses under the Funeral Benefit Business Act 1982 , section 6 , is declared to be the supervising entity for a trustee.
See also the Funeral Benefit Business Act 1982 , section 80 .
s 2 sub 2003 SL No. 305 s 25 ; 2024 SL No. 22 s 6
Section sec.2A
s 2A ins 2003 SL No. 305 s 25
om 2024 SL No. 22 s 6
pt.3 Record keeping
Record keeping
pt.3-div.1 Prescribed books, accounts and records
Prescribed books, accounts and records
sec.3 Books, accounts and records to be kept by trustees
sec.3 Books, accounts and records to be kept by trustees
A trustee must keep the following books, accounts and records—
a register of trust account receipt forms;
a trust account receipt book of consecutively machine numbered receipt forms in duplicate;
a trust account deposit book of trust account deposit forms in duplicate;
a trust account cash book;
a trust account journal of consecutively machine numbered folios;
a trust account ledger;
a trust account investment ledger.
(a) a register of trust account receipt forms;
(b) a trust account receipt book of consecutively machine numbered receipt forms in duplicate;
(c) a trust account deposit book of trust account deposit forms in duplicate;
(d) a trust account cash book;
(e) a trust account journal of consecutively machine numbered folios;
(f) a trust account ledger;
(g) a trust account investment ledger.
pt.3-div.2 Register of trust account receipt forms
Register of trust account receipt forms
sec.4 Register
sec.4 Register
A register of trust account receipt forms must contain a record of the receipt number of each receipt form held by the trustee.
pt.3-div.3 Trust account receipt books
The Regulation also contains amendments and expiry markers for certain inserted or amended sections, many with an expiry date of 1 April 2026 as annotated in the text (see the notes under Pt 5 and elsewhere). The text provided references a schedule that contains information for the auditor’s report (s 23), but the schedule itself is not included in the excerpt provided.
The remainder of this document unpacks the main concepts the Regulation relies on, identifies the parties affected, lists key duties and rights, sets out penalties and enforcement mechanisms, describes interactions with other laws named in the text, records the amendment entries shown in the Regulation, states the (absent) litigation record named in the instrument, highlights operational gotchas and practical friction points, and finishes with a practical compliance checklist mapped to the Regulation’s sections.
Main concepts
The Regulation builds around a handful of operational legal concepts. These are not abstract fiduciary statements but concrete record and process specifications intended to produce auditable trails and limit commingling or premature payments. Key concepts are:
Prescribed books and forms: section 3 mandates a defined set of books, accounts and records, including a register of trust account receipt forms, trust account receipt books (consecutively machine numbered duplicate forms), deposit books, cash books, trust journals, ledgers and an investment ledger. These items are the foundational data sources auditors and regulators will rely on (s 3).
Receipt and deposit formalities: the Regulation prescribes the content and heading of receipt forms (s 5), the requirement that receipts be used only for trust moneys and that copies be retained (s 6), and the particulars required on deposit forms and deposit documentation, including different documentary evidence where payment is by electronic funds transfer (s 8-9). The text requires duplicate "Office Copy" or "Duplicate Copy" forms for receipts (s 5(3)) and a register to track receipt numbers (s 4).
Timing and posting rules: the Regulation sets strict timing for entries and posting. Cash-book entries must be made within 2 days after receipt or payment (with an EFT exception allowing entry on the day the trustee becomes aware of the EFT) (s 11). Cash-book entries must be posted to ledger accounts within 2 days (s 15). Monthly reconciliations are required as soon as practicable after month end and must contain specified particulars and a reconciliation arithmetic (s 12).
Cleared funds rule for disbursements: trustees may not withdraw more than the amount of cleared funds attributable to the particular matter (s 10(1)). Cheques drawn require specific signatories depending on the trustee’s organisational form (s 10(1)(b)), and cheque butts must record prescribed particulars (s 10(2)-(4)). The Regulation therefore links the timing of clearing and payment authority to the availability of funds.
Investment mechanics and accounting: investments require written authority from the person entitled to the trust moneys (s 16(1)). The trustee must deposit the amount to be invested into the trustee’s general trust account before investing, and deposit proceeds into the general trust account before paying them out (s 19). The Regulation requires a trust account investment ledger with an investment control account and separate investment ledger accounts per person, and prescribes double-entry recording rules for investments, interest accruals, withdrawals and realisations (ss 16-18). Interest accruing on investments must be added to and treated as trust moneys (s 20).
Transfers by journal entry subject to entitlement: section 21 permits transfers between trust ledger accounts by journal entry, but only when the trustee is entitled to pay the moneys for the purpose for which they are transferred. The journal must carry specified particulars and authorisation signatures (s 21).
Computer-system auditability and retention controls: when records are computerised, the system must be capable of recording creation, amendment and deletion chronologically; backups at least monthly are required and must be stored in a fire‑proof location resistant to magnetic interference; deletion of a trust ledger account is prohibited unless zero balance and a pre-deletion visible record is kept; amendments must be separate transactions; reports must be sequentially numbered under program control; and the system must produce contemporaneous reports for debit-balance transactions. Monthly print-outs are required for certain reports, and print-outs must be produced immediately before deletion of ledger accounts held electronically (s 22).
Audit and reporting specifications: auditors must report using information stated in the schedule for specified Act provisions (s 23). Trustees must retain and, on request by a subsequent auditor, produce previous auditor reports (s 24) or, where unavailable, provide a statutory-declaration-backed statement of investments for the audit period (s 25). Audits and unannounced examinations are to follow the Audit Standards and Audit Guidance Statements issued by the Auditing Standards Board of the Australian Accounting Research Foundation (s 26). Unannounced examinations have a defined "examination period" to be examined (s 27).
Enforcement levers expressed as penalty unit maxima: many contraventions attract a maximum penalty commonly stated as 10 penalty units (for breaches of record-keeping, posting, reconciliation, investment accounting and similar provisions), with narrower provisions carrying smaller maxima (for example, 5 penalty units for contravening an auditor’s direction to destroy a receipt form or failing to notify the supervising entity about cancelled receipt forms) (s 6, 7, 9-12, 16-21, 22, 23, 24, 25).
Supervising entity declaration: for the purposes of Act s 4E(2), the Regulation names the registrar of funeral benefit businesses under the Funeral Benefit Business Act 1982, s 6, as the supervising entity for a trustee in that context (s 2). This is a statutory cross-reference pinning supervisory power to an identified office.
Minimum auditor professional indemnity: the Regulation prescribes a minimum level of professional indemnity insurance for persons appointed as auditors under the Act: not less than $250,000 (s 28).
The Regulation therefore operationalises trust-account compliance by defining documentary form, timing, accounting double-entry rules, system auditability and minimum auditor insurance, each expressed in clear, enforceable specifications.
Who it affects
The Regulation’s subject matter and language identify primary and secondary groups affected, and show who bears procedural responsibilities, who exercises oversight and who faces enforcement risk.
Trustees holding trust moneys: The central target of the Regulation is the trustee who holds trust moneys. The term "trustee" appears throughout the instrument and is assigned the obligations to keep the specified books and records (s 3), to use receipts only for trust money and supply copies (s 6), to deposit funds and retain deposit documentation (s 9), to ensure disbursements are limited to cleared funds (s 10), to make prompt cash book and ledger entries (ss 11, 15), to maintain investment records and act on investment authorisations (ss 16-20), to prepare journals correctly (s 21) and to comply with computerised-records rules (s 22). Trustees include individuals and partnerships, which the Regulation explicitly recognises when prescribing who signs cheques or statutory declarations (see s 10(1)(b), ss 25(4)).
Persons on whose behalf trust moneys are held (beneficiaries/clients): These persons are the named parties for whom separate ledger accounts must be kept for each matter (ss 13-14). Their rights are indirectly affected: the Regulation ensures a defined record trail linked to their matters (receipt numbers, ledger entries, investment ledger information) and prescribes how and when funds and investment proceeds should be handled (ss 5, 14, 16-20).
Auditors appointed under the Act: Auditors carry a verification, reporting and investigatory role. The Regulation defines the content for auditor reports by reference to a schedule (s 23), provides for auditor directions in limited circumstances (s 7), sets auditing procedures and standards (s 26), defines the scope and period for unannounced examinations (s 27), and requires auditors to receive statements and supporting statutory declarations where previous audit reports are unavailable (s 25). Additionally, the Regulation prescribes minimum professional indemnity insurance for auditors appointed under the Act (s 28). Auditors therefore decide on directions under s 7, prepare reports, and enforce the Regulation’s documentary standards through examination and audit.
Supervising entity: The Registrar of funeral benefit businesses (Funeral Benefit Business Act 1982, s 6) is declared to be the supervising entity for trustees for Act s 4E(2) purposes (s 2). This entity receives notices from auditors under the receipt-destruction rules (s 7(4)) and is the statutory recipient of some supervisory information. More generally, the principal Act (repeatedly cited) and its supervising entity mechanism are invoked throughout, meaning the supervising entity named may exercise supervisory powers derived from the Act and operationalised by the Regulation (s 2).
Financial institutions: The Regulation places documentary-preservation obligations that interact with bank statements and bank acknowledgements. Trustees must obtain a document, other than a financial institution statement balance, from the financial institution acknowledging receipt of EFT trust moneys and keep it (s 9(1)(b)). Financial institutions therefore are indirectly implicated insofar as trustees must obtain appropriate documentary acknowledgements.
Providers of computerised accounting systems and IT service providers: The Regulation mandates functional attributes of any computerised system holding required records: capacity, backups at least monthly, fire‑proof offsite or protected media storage, procedure for amendments as separate transactions, sequential numbering under program control and the ability to produce chronological reports of debit-balance transactions (s 22). Software vendors and IT managers will be required to configure systems to support these outputs and to ensure deletion procedures and print‑outs are available.
Persons authorised to sign cheques or authorise journal transfers: The Regulation prescribes signatory rules: cheques drawn for trust account payments must be signed by an appropriate person depending on the trustee’s organisational form (s 10(1)(b)) and journals must bear the signature of the trustee or authorised signatory authorising the transfer (s 21(3)(f)). Those persons therefore carry specific authority and associated liability for items signed.
Those acting as partners or named individuals: The Regulation repeatedly notes that when the trustee is an individual or a partnership certain duties (such as making statutory declarations or signing documents) fall to the individual or a partner (see ss 10(1)(b), 25(4)). Partnerships therefore need internal controls so that partners can fulfil those obligations.
Anyone conducting an audit or unannounced examination: The Regulation sets the content of audits and examinations and the documents auditors must examine, and includes enforcement consequences for failing to supply or retain audit reports (ss 23-27). Entities that perform these audits must follow the specified Auditing Standards and Audit Guidance Statements (s 26).
The supervising entity and regulators: The supervising entity named in s 2 and other regulators deriving powers from the principal Act are affected because the Regulation defines record requirements that they will enforce and inspect under their Act-granted powers. Where auditors direct the destruction of unused receipt forms, auditors must notify the supervising entity with trustee, account and receipt numbers (s 7(4)).
In sum, primary compliance burden and exposure fall on trustees; auditors and supervising entities are granted duties and powers to check compliance; financial institutions and IT providers are implicated operationally because trustees must secure particular documentary acknowledgements and system capabilities.
Key duties and rights
This section sets out the Regulation’s principal positive and negative obligations and any rights to act it gives to particular actors, with direct citations to the Regulation where appropriate.
Duties imposed on trustees
Maintain specified books and records: Trustees must keep the full set of books listed in s 3: a register of trust account receipt forms; a trust account receipt book of consecutively machine numbered receipt forms in duplicate; a trust account deposit book of deposit forms in duplicate; a trust account cash book; a consecutively machine numbered trust account journal; a trust account ledger; and a trust account investment ledger (s 3).
Keep a register of receipt forms: The register must record the receipt number of each form held (s 4).
Use and retain trust receipts correctly: Receipt forms must be headed ‘Trust Account Receipt’ and contain prescribed particulars (s 5(1)). Receipts must be used only for trust moneys; include the prescribed particulars; be given to the person from whom trust moneys are received; copies must be kept securely; and cancelled receipts retained (s 6). Failure to do so attracts a maximum penalty of 10 penalty units (s 6).
Destroy unused receipt forms only on auditor direction and notify supervising entity: An auditor may direct a trustee to destroy a receipt form if the auditor reasonably believes the trustee does not intend to use the form (s 7(2)). Trustees must comply with that direction; contravention carries 5 penalty units (s 7(3)). If an auditor directs destruction, the auditor must notify the supervising entity of the trustee’s name and address, the general trust account name and number, and the receipt number; failure carries 5 penalty units (s 7(4)).
Preserve deposit documentation: Deposit forms must include specified particulars (s 8). If payments are made other than by EFT, a copy of the deposit form must be kept (s 9(1)(a)). For EFT, the trustee must receive a document (other than a financial institution statement balance) from the financial institution acknowledging receipt and keep it (s 9(1)(b)). Breach is a maximum of 10 penalty units (s 9).
Restrict disbursements to cleared funds and meet cheque formalities: Trustees must not withdraw or cause payments from a trust account for a particular matter unless the withdrawal does not exceed cleared funds for that matter (s 10(1)(a)). Cheques drawn under the Act must be signed by specified persons depending on whether the trustee is an individual or a partnership (s 10(1)(b)). Cheque butts or documents must record date, payee, on‑whose‑behalf, matter description and amount (s 10(2)). For cheques drawn on financial institutions, the trustee must write the name of the person beneficially entitled to the trust moneys on the cheque and cheque butt/document (s 10(3)). Each cheque butt and related document must be kept securely (s 10(4)). Penalties up to 10 penalty units apply to these obligations.
Make prompt cash-book entries and perform monthly reconciliations: Trustees must enter prescribed particulars within 2 days of receipt or payment into the trust account cash book (s 11), with an exception for EFT where the trustee may enter on the day they become aware of the receipt (s 11(2)). Trustees must balance and reconcile cash book balance and ledger after each month and reconcile the financial institution statement balance with the cash book, keeping reconciliations securely (s 12). Reconciliations must contain specified particulars and perform defined arithmetic additions and deductions (s 12(2)-(3)). Maximum penalty 10 penalty units (s 11, 12).
Maintain separate ledger accounts for each matter: Trustees must keep a separate ledger account in the trust ledger for each matter and each person on whose behalf trust moneys are received (s 13), with prescribed content per ledger entry (s 14). Maximum penalty 10 penalty units (s 13).
Post cash-book entries to ledger promptly: Each cash-book entry must be posted to the trust ledger account within 2 days of the receipt or payment (s 15). Maximum penalty 10 penalty units.
Invest only on written authority and keep investment ledger: Trustees must invest only where a person entitled to trust moneys gives written authority; invest within 2 days of receiving the authority; and keep an investment ledger containing an investment control account and an investment ledger account for each person (s 16(1)-(2)). Maximum penalty 10 penalty units.
Record investments using double-entry rules and specified particulars: Trustees must follow the credit/debit rules set out in s 17 and enter specified particulars into the investment control and investment ledger accounts (s 18). Maximum penalty 10 penalty units.
Deposit into general trust account before investing or paying investment proceeds: Trustees must deposit amounts to be invested into the trustee’s general trust account before investing, and deposit withdrawn or realised amounts into the general trust account before paying them to the person (s 19). Maximum penalty 10 penalty units.
Treat interest as trust moneys: Interest must be added to and dealt with as trust moneys (s 20). Maximum penalty 10 penalty units.
Ensure journal transfers are authorised and recorded: Transfers between trust ledger accounts by journal entry are permitted, but only where the trustee is entitled to pay for the purpose of the transfer (s 21(2)). Each journal entry must record specified particulars and be signed by the trustee or authorised signatory (s 21(3)). Maximum penalty 10 penalty units.
Ensure computer-system capabilities and retention practices: If using a computerised accounting system, trustees must ensure the system has capacity and backup capability, that it is backed up at least monthly, backups stored on media in a fire-proof location unaffected by magnetic interference, that accounts cannot be deleted unless zero balance and a visible pre-deletion record is kept, that amendments are separate transactions, that reports are sequentially numbered under program control, that debit-balance-producing entries generate contemporaneous records and chronological reports, and that a print-out of specified reports is made monthly (s 22). Maximum penalty 10 penalty units.
Duties imposed on auditors and related rights
Authorise destruction of unused receipt forms and notify supervising entity: Auditors who reasonably believe a trustee will not use a receipt form may direct destruction (s 7(2)). Auditors must notify the supervising entity of such directions (s 7(4)). The Regulation imposes duties on auditors to prepare reports containing information in the schedule for Act provisions (s 23(1)), to give copies of reports to the trustee (s 23(2)) and to conduct unannounced examinations covering a defined examination period (s 27).
Follow specified auditing standards: The Regulation requires auditors to apply the Audit Standards and Audit Guidance Statements issued by the Auditing Standards Board of the Australian Accounting Research Foundation for audits and unannounced examinations (s 26).
Duties imposed on trustees to assist auditors
Keep copies of auditor’s reports and provide them to subsequent auditors on request unless a reasonable excuse exists (s 24). If the previous auditor’s report is unavailable or it is the first audit, trustees must give the auditor a statement of investments held on the first day of the audit period with specified particulars, accompanied by a statutory declaration by the trustee or a partner (s 25). Maximum penalty 10 penalty units applies.
Other rights and obligations
Declaration of supervising entity: The Regulation confers the status of supervising entity in the funeral-benefit context on the registrar of funeral benefit businesses (s 2). The Regulation thereby establishes who receives certain supervisory notices and who is the named supervising entity for the Act s 4E(2) purpose.
Minimum professional indemnity insurance for auditors: Persons appointed as auditors under s 14 of the Act must hold professional indemnity insurance not less than $250,000 (s 28). This is a precondition for appointment.
The Regulation therefore maps precise documentary and accounting duties to trustees, assigns reporting and investigatory duties to auditors, and sets minimum insurance for auditors, creating binding procedural rights and obligations for the actors named.
Penalties and enforcement
The Regulation expresses enforcement primarily through maximum penalty units attached to many obligations, and by granting auditors specific inspection and direction powers. It does not itself specify enforcement agencies beyond naming the supervising entity in a particular context. The penalties and enforcement mechanisms in the text are as follows.
Penalty unit maxima and sections
10 penalty units: This is the common maximum penalty that applies to the majority of record-keeping, posting, reconciliation, deposit, investment, disbursement and computer-system obligations. Specific provisions with a maximum of 10 penalty units include:
Use, retention and handling of trust account receipt forms (s 6).
Requirements to keep deposit documentation and EFT acknowledgment documents (s 9).
Disbursement limits, cheque signing and cheque-butt particulars and retention (s 10).
Timely cash-book entries (s 11).
Monthly balancing and reconciliation duties, and the requirement to keep reconciliations (s 12).
Requirement to keep separate ledger accounts for each matter (s 13).
Timely posting from cash book to ledger (s 15).
Investment record-keeping and prompt investment upon authority (s 16).
Accounting treatment of investments, interest and transaction entries (ss 17-18).
Deposit-before-investing and deposit-before-payment rules (s 19).
Treatment of investment interest as trust money (s 20).
Journal transfer procedural and entitlement requirements (s 21).
Computer-system capacity, backup, print-out and auditability requirements (s 22).
Auditor reporting duties (s 23) and trustee obligations to retain and provide reports (s 24).
Trustee obligations to provide statements for investments where audit reports are unavailable (s 25).
5 penalty units: Two narrower provisions in relation to destruction of unused receipt forms carry a maximum 5 penalty units:
A trustee must not contravene an auditor’s written direction to destroy a receipt form; contravention has a maximum penalty of 5 penalty units (s 7(3)).
If an auditor gives a trustee a written direction to destroy a receipt form, the auditor must give the supervising entity a notice stating trustee name and address, general trust account name and number, and receipt number as soon as practicable after giving the direction; failure attracts 5 penalty units (s 7(4)). The first subparagraph suggests auditor duties and the penalty applies to the auditor for failing to notify.
Enforcement actors and paths
Auditors: Auditors can direct trustees to destroy unused receipt forms where they reasonably believe the trustee will not use them (s 7(1)-(2)). Auditors prepare reports and must provide copies to trustees (s 23). Auditors may conduct unannounced examinations of trustee records for the defined examination period (s 27). In short, auditors have investigatory and limited directive power under the Regulation.
Supervising entity: The Regulation identifies the registrar of funeral benefit businesses (Funeral Benefit Business Act 1982, s 6) as the supervising entity for trustees in the context of Act s 4E(2) (s 2). Auditors must notify the supervising entity about destructed receipt forms (s 7(4)), so the supervising entity is the statutory recipient of certain audit‑originated notices. The principal Act likely gives additional enforcement powers to the supervising entity; however, the Regulation itself limits its statement to declaring the entity for the Act s 4E(2) purpose.
Criminal or civil prosecution: The Regulation expresses compliance obligations as contraventions attracting maximum penalty units; the enforcement path to impose such penalties would be via the mechanisms in the principal Act and general enforcement provisions for the relevant jurisdiction. The Regulation itself does not set out the prosecutorial authority or administrative enforcement processes; it sets the substantive offences and penalty maxima.
Assessment of enforcement design
Clear specification of contraventions: The Regulation converts many compliance requirements into clear, bounded offences with quantified maximum penalties. This provides predictable exposure for trustees and auditors.
Reliance on auditors for active enforcement: Auditors are given procedural power to direct destruction of unused receipts and to conduct unannounced examinations. This creates an enforcement channel whereby audit activity translates into supervisory information flows (s 7, s 27). Auditors also have the duty to follow specified auditing standards (s 26), which directs quality control into audit practice.
Supervising entity linkage is narrow in the text supplied: The Regulation declares a supervising entity for a specific Act provision and requires notices to be sent to that entity in relation to destroyed receipt forms (s 2, s 7(4)). The supervising entity’s broader enforcement powers are not detailed in the Regulation itself.
Penalty levels and practical enforcement: 10 penalty units is the predominant sanction for many breaches. The Regulation does not provide for escalating sanctions, administrative fines, injunctive relief or pecuniary recovery beyond the penalty unit maxima. The efficacy of enforcement will depend on the principal Act’s administrative powers and the prosecutorial appetite of regulators; the Regulation prescribes the substantive contraventions but leaves the enforcement architecture to the Act and general administrative law.
The Regulation therefore defines offences and penalties in specific, discrete areas of trust-account administration, and places auditors and the supervising entity into the enforcement ecosystem by requiring reporting, notification and audit practices.
How it interacts with other laws
The Regulation is designed to operate in conjunction with the principal Act and other named instruments. The text contains a number of explicit cross-references and incorporations by reference that shape its operation.
References to the principal Act
The Regulation repeatedly refers to provisions of "the Act" without reproducing them. Examples include the declaration of the supervising entity for the purposes of section 4E(2) of the Act (s 2), the cheque drawing condition referring to s 12(1) of the Act (s 10(1)(b)), audit powers (various references to Act ss 16(1)(b), 18(1), 19(1)(b) and other Act sections in ss 23-27), and the use of the Act’s auditing provisions (s 26). The Regulation therefore implements operational rules that are intended to give effect to the Act’s regulatory framework. Absent the Act’s provisions, the Regulation lacks full context; compliance requires reading the Regulation alongside the Act.
Cross-reference to Funeral Benefit Business Act 1982
Supervising entity: Section 2 declares the registrar of funeral benefit businesses under the Funeral Benefit Business Act 1982, s 6, to be the supervising entity for a trustee for the purposes of s 4E(2) of the Act and refers to Funeral Benefit Business Act 1982, s 80 for further relevance (s 2). This binds the funeral-benefit supervisory apparatus to the trust-account regime for specified trustees, linking two Acts and their administrative offices.
Incorporation of external auditing standards
The Regulation specifies that audits and unannounced examinations must follow the Audit Standards and Audit Guidance Statements issued by the Auditing Standards Board of the Australian Accounting Research Foundation (s 26). This is an incorporation by reference of nationally recognised auditing standards into the compliance framework, obliging auditors to follow professional standards in conducting audits and examinations. Compliance with those external standards is a regulatory requirement under the Act‑Regulation pair.
Documentary interactions with financial institutions
Deposit acknowledgement for EFT: Section 9 requires trustees to obtain, when trust moneys are deposited by way of electronic funds transfer, "a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account". This interacts with ordinary banking documentation practices and may require trustees to request and secure specific bank transaction confirmations or remittance advices rather than relying solely on periodic bank statements.
Interaction with statutory declaration regime
Statements to auditors where previous audit reports are not available must be accompanied by a statutory declaration made by the trustee or a partner (s 25). This invokes the statutory declaration procedures and attendant penalties under the statutes governing declarations in the jurisdiction; reliance on statutory declarations will have evidentiary and legal consequences outside the Regulation itself.
Potential interaction with other regulatory frameworks
The Regulation’s computer-system requirements (s 22) and record-retention rules could interact with broader data-protection, privacy or archival requirements under other laws. The Regulation requires storing backups in fire-proof locations unaffected by magnetic interference, and that certain printed records are kept; those requirements may complement or duplicate other statutory obligations.
Limits on what the Regulation itself does not do
The Regulation prescribes documentary and procedural detail but does not contain the Act’s broader supervisory, investigative, licensing or sanctioning procedures. Therefore, enforcement mechanisms beyond penalty unit maxima and auditor powers are likely set out in the principal Act and in the Funeral Benefit Business Act 1982 for the supervising entity declared in s 2.
The Regulation mentions a schedule that contains the information for an auditor’s report required under specified Act sections (s 23), but the schedule itself is not part of the text provided. Practically, users must consult the full Regulation as published (including its schedule) and the Act to determine the complete audit-reporting content and applicable Act powers.
In short, the Regulation is tightly integrated with the principal Act for its legal force, declares a supervising entity under an external Act for specified trustees, imports external auditing standards, and prescribes documentary evidentiary interactions with financial institutions. Compliance therefore requires working through the Regulation in tandem with the principal Act, the Funeral Benefit Business Act 1982 where relevant, and the incorporated Auditor Standards.
Amendment history
The Regulation’s text contains inline amendment and insertion annotations. These give the dates and statutory local instruments responsible for particular changes or insertions and identify expiry notations for several inserted provisions. The following is a précis of the amendment annotations that appear in the text supplied.
Section 2
Annotation: "s 2 sub 2003 SL No. 305 s 25; 2024 SL No. 22 s 6". This indicates section 2 was substituted by SL No. 305 of 2003, s 25 and further referenced/amended or re-issued in 2024 under SL No. 22 s 6.
Section 2A
Annotation: "s 2A ins 2003 SL No. 305 s 25 om 2024 SL No. 22 s 6". Section 2A was inserted by SL No. 305 of 2003 and omitted by 2024 SL No. 22 s 6.
Section 3
No explicit amendment annotation was included in the supplied extract for s 3, beyond the listing of subsections and repeated content.
Section 7
Annotation: "s 7-ssec.1 ...", and the text repeats subsections, but the main amendment annotation reads "sec.7-ssec.1 etc." without a clear SL citation in the extract. However the line "sec.7-ssec.1" is present; no separate amendment note is given.
Sections 10, 11, 12, 14, 16 etc.
Many sections bear annotations indicating amendments or editorial restatements, for example "s 10 amd 2024 SL No. 22 s 7" beside s 10, indicating an amendment in 2024 by SL No. 22 s 7.
Section 22
The computer system section s 22 includes the annotation "sec.22-ssec.1) ...", etc., and multiple subparagraphs with the "Maximum penalty,10 penalty units" note. The extract also includes "sec.22-ssec.5" for deletion print-out obligations.
Section 23
Annotation: "sec.23-ssec.1 ...", no separate SL noted in this portion.
Sections 28 onwards (Pt 5 Professional indemnity insurance)
Section 28: "s 28 amd 2024 SL No. 22 s 8" indicates an amendment in 2024 by SL No. 22 s 8. Section 28 prescribes a minimum PI of $250,000.
Sections 28A, 29, 30, 31, 32, 33, 34, 35
Each of these sections includes an annotation indicating they were inserted or amended by 2024 SL No. 22 and carry an expiry: "exp 1 April 2026 (see s 35)". Specifically:
"s 28A ins 2024 SL No. 22 s 9 exp 1 April 2026 (see s 35)"
"s 29 amd 2024 SL No. 22 s 10 exp 1 April 2026 (see s 35)"
"s 30 amd 2024 SL No. 22 s 11 exp 1 April 2026 (see s 35)"
"s 31 amd 2024 SL No. 22 s 12 exp 1 April 2026 (see s 35)"
"s 32 amd 2024 SL No. 22 s 13 exp 1 April 2026 (see s 35)"
"s 33 amd 2024 SL No. 22 s 14 exp 1 April 2026 (see s 35)"
"s 34 sub 2024 SL No. 22 s 15 exp 1 April 2026 (see s 35)"
"s 35 ins 2024 SL No. 22 s 15 exp 1 April 2026 (see s 35)"
The repeated "exp 1 April 2026 (see s 35)" notation indicates that the 2024 amendments were implemented as temporary measures scheduled to expire on 1 April 2026, per the instrument’s own transitional or sunset provisions.
Section 35
The annotation "s 35 exp 26 June 1999 (see s 35(2))" appears, indicating an expiry event tied to 26 June 1999 under an earlier operation of the Regulation; this is an archival note in the version of the Regulation provided.
Notes and constraints
The extract includes multiple instances where subsections are reprinted or restated (for example, duplicates of subsection content). The amendment annotations embedded in the text point to statutory instruments (SL No. 305 of 2003; SL No. 22 of 2024) that have modified certain sections. The provided extract does not include the full text of the schedule referenced in s 23 or the full editorial history.
Several 2024 amendments have explicit expiry dates in 2026 according to the notes in the text. Users relying on this Regulation must check the published consolidated version and any subsequent SLs after 2024 to confirm whether those temporary provisions were extended, made permanent or lapsed on 1 April 2026.
The amendment history shown in the extract is not comprehensive of the Regulation’s entire life; it records some substitutions and insertions. To determine the complete legislative change path, the principal Act and successive statutory instruments should be consulted in the relevant official legislative database.
Litigation history
The Regulation text provided does not name any cases, judicial decisions, or litigated interpretations. It references external instruments and standards (the Act, the Funeral Benefit Business Act 1982, and the Audit Standards and Audit Guidance Statements), but contains no case law citations. Relevant points to note:
There are no cases named in the Regulation’s text. The Regulation does not summarise or reference court decisions, nor does it specify judicial interpretations of its provisions.
Any litigation history that affects interpretation of the duties in this Regulation would sit in decisions interpreting the principal Act, the Funeral Benefit Business Act 1982, or general trust-accounting jurisprudence. Those materials are not included in the supplied instrument.
Practitioners should therefore treat the text as a statement of statutory obligations and consult separate legal databases for case law that may interpret similar provisions, the principal Act, or auditing standards. The Regulation itself does not provide judicial guidance or illustrative enforcement examples.
In short, the Regulation sets out prescriptive duties and penalties but does not provide litigation history or named cases in its text.
Gotchas
The Regulation contains multiple operational pitfalls and potential sources of compliance failure. These are concrete, documentable frictions arising from form, timing, system and process requirements in the Regulation.
Deposit-before-investment and deposit-before-payment rules constrain timing and cash flow (s 19)
Trustees must deposit the amount to be invested into the trustee’s general trust account before investing (s 19(1)), and must deposit investment proceeds into the general trust account before paying them to the person (s 19(2)). This creates a mandatory two-step cash flow through the general trust account rather than allowing investment moneys to be sent directly to the investment vehicle or paid direct to the beneficiary. Failure attracts a maximum penalty of 10 penalty units. Practically, this requires banking arrangements and internal workflows that move money via the general trust account and may produce short timing delays.
Strict and short timeframes for entries and posting (ss 11, 15)
Cash-book entries must be made within 2 days of receipt or payment (s 11(1)), with the EFT exception only allowing entry on the day of awareness (s 11(2)). Posting from cash book to ledger must occur within 2 days after receipt or payment (s 15). These are tight deadlines: missing them creates contraventions with a maximum of 10 penalty units. Small practices without daily accounting routines may struggle to meet the 2-day requirement.
EFT documentary requirement is not satisfied by a bank statement balance (s 9(1)(b))
For EFT deposits trustees must obtain a document from the financial institution, other than a financial institution statement balance, that acknowledges receipt into the trust account. Relying solely on periodic bank statements or online account balances will not meet s 9’s requirement. Trustees may need to request bank transaction acknowledgements, remittance advices or deposit confirmations for each EFT deposit.
Computer-system deletion and amendment controls risk loss of records (s 22)
Computerised systems must not allow deletion of trust ledger accounts unless the account has a zero balance and a visible record of the account as it was immediately before deletion is kept (s 22(2)(d)). Amendments to transactions must be recorded as separate transactions (s 22(2)(e)). Systems that allow editing or overwriting without an audit trail will fail to comply. Off-the-shelf accounting packages must be configured or supplemented to produce the required sequentially numbered reports and separate transaction entries.
Requirement for print‑outs and visible records before deletion (s 22)
The Regulation requires monthly print-outs (s 22(3)-(4)) and print‑outs immediately before deleting any ledger account (s 22(5)). Electronic-only record keeping without backed-up printed or visible records at these moments risks non‑compliance.
Journal transfers permitted only when trustee is entitled to pay for the purpose of transfer (s 21(2))
The transfer-by-journal rule is conditional on entitlement to pay for the purpose the funds are transferred. That raises discretionary and evidentiary questions: trustees must clearly evidence entitlement to avoid improper reallocation across matters. Journals must be signed by authorised signatories and record specified particulars (s 21(3)), increasing evidentiary burden and audit scrutiny.
Interest must be treated as trust money and added to trust moneys (s 20)
All interest accruing on invested trust moneys must be added to and dealt with as trust moneys. Practices that sweep interest to a general bank account for operational purposes would breach s 20.
Receipt-form machine-numbering and duplicate copy management (s 5-6)
Receipts must be consecutively machine numbered and duplicate copies held as 'Office Copy' or 'Duplicate Copy' (s 5(2)-(3)); trustees must keep a register of receipt numbers (s 4). Missing numbers, gaps in sequence without documented cancellation handling, or failure to retain cancelled forms may raise audit exceptions. Auditors have the power to direct destruction of unused receipt forms and require notification to the supervising entity (s 7), exposing trustees to penalty if they contravene directions.
Cheque formalities and authorised signatures (s 10)
Cheques drawn for trust payments must have prescribed particulars on the cheque butt and documents, and be signed by specific persons depending on whether the trustee is an individual or partnership (s 10(1)-(4)). In multi-person firms, failure to designate authorised signatories or to ensure appropriate signatory practice exposes the trustee to contravention.
Auditing standards incorporation (s 26)
Auditors are required to follow the Auditing Standards and Audit Guidance Statements. Trustees should expect audits to follow those standards; conversely auditors must align their procedures to them. The Regulation’s content-driven audit expectations combined with those professional standards may amplify the audit scope.
Schedule for auditor’s report not included in the extract (s 23)
Section 23 references information for the auditor’s report specified in "the schedule". That schedule is not part of the extract provided. Practitioners must check the full Regulation to determine the exact auditor-reporting content.
Temporary 2024 amendments with expiry in 2026 (Pt 5 notes)
Several 2024 amendments carry an "exp 1 April 2026" notation. Organisations that updated processes to comply with the 2024 changes must track whether those provisions were extended, made permanent or lapsed on that date.
These “gotchas” are concrete compliance traps; trustees and auditors must align banking processes, accounting systems, internal controls, and audit‑ready documentation to the Regulation’s prescriptive requirements.
How to comply
The following is a practical compliance checklist and recommended control framework mapped to the Regulation’s sections. It assumes trustees are responsible for compliance; where auditors or supervising entities have roles, those are identified.
Establish the prescribed books, accounts and records (s 3)
Set up and maintain:
a register of trust account receipt forms (s 4);
trust account receipt books with consecutively machine numbered duplicate receipt forms (s 3, s 5(2)-(3));
a trust account deposit book with deposit forms in duplicate (s 3, s 8);
a trust account cash book (s 3);
a trust account journal with consecutively numbered folios (s 3);
a trust account ledger with separate ledger accounts per matter and person (s 3, s 13);
a trust account investment ledger containing an investment control account and individual investment ledger accounts (s 3, s 16).
Design and control receipt forms and register (ss 4-6)
Ensure each receipt form is headed “Trust Account Receipt” and contains the particulars set out in s 5(1): trustee name; date; name of recipient; name of person on whose behalf money is received; brief matter description; amount in words and figures; method of receipt; signature of person giving the receipt (s 5).
Use each receipt form only for trust moneys, give the receipt to the payer, keep a legible copy and retain cancelled receipts in records (s 6).
Maintain a receipt-register recording sequential receipt numbers (s 4).
If auditors direct destruction of unused receipt forms, comply and ensure the auditor notifies the supervising entity with trustee name and address, general trust account name and number, and receipt number (s 7(2), (4)).
Deposit processing and documentation (ss 8-9)
Ensure deposit forms record trust account name and account number, deposit amount and date, receipt number, and depositor signature (s 8).
For non‑EFT deposits retain a copy of the trust account deposit form in records (s 9(1)(a)).
For EFT deposits obtain, and retain in records, a document from the financial institution that acknowledges receipt into the trust account, not merely a statement balance (s 9(1)(b)). Confirm with the bank what form of acknowledgements are available and how to obtain them automatically or on request.
Disbursement controls and cheque procedures (s 10)
Implement a policy that disallows any payment or withdrawal from a trust matter’s account in excess of cleared funds for that matter (s 10(1)(a)).
Ensure cheques drawn under the Act are signed by the appropriate person: for individual trustees the trustee or appointee; for partnerships, a partner (s 10(1)(b)).
Record on the cheque butt or other document the date, payee, person on whose behalf the cheque is drawn, brief matter description, and amount (s 10(2)). For payments by cheque on a financial institution, write the name of the beneficially entitled person on the cheque and on the cheque butt or other document (s 10(3)).
Retain all cheque butts and supporting documents securely in records (s 10(4)).
Timely cash-book entries and ledger posting (ss 11, 15)
Enter receipts and payments in the trust account cash book within 2 days of the transaction. For EFT receipts, you may enter on the day the trustee becomes aware of the receipt (s 11).
Post each cash-book entry to the appropriate trust ledger account within 2 days of the receipt or payment (s 15).
Ensure entries capture all particulars required by s 11 and s 14 (date, names, matter description, amounts, receipt/cheque numbers and balance).
Monthly reconciliations and retention (s 12)
At month end, reconcile the trust account cash book balance with the trust account ledger and reconcile the financial institution statement balance for the trust account with the cash-book balance (s 12(1)).
Prepare reconciliations containing the financial institution statement balance at month end; amount of trust moneys on hand and date received; outstanding deposits and dates; details of outstanding cheques (number, amount, date); and the trust account balance per the cash book (s 12(2)).
Reconcile as specified by adding outstanding deposits to the financial institution balance and deducing outstanding cheques (s 12(3)) and retain reconciliations securely (s 12(4)).
Separate ledger accounts per person and matter (ss 13-14)
Create a separate ledger account in the trust ledger for each person and each matter (s 13).
Ensure each ledger account contains the surname and initials of the person and a brief matter description; each ledger entry must have date, counterparty name, matter description, amount, receipt or cheque number as applicable and the running balance (s 14).
Investment procedures and recording (ss 16-20)
Obtain written authority from the person entitled to trust moneys before investing (s 16(1)). Invest within 2 days after receiving authority (s 16(2)(a)).
Before investing, deposit the amount to be invested into the trustee’s general trust account (s 19(1)); before paying investment withdrawals to a person, deposit the amount into the general trust account (s 19(2)).
Maintain an investment control account and individual investment ledger accounts (s 16(2)(b)).
Apply the double‑entry rules in s 17 when investing, recording interest accruals only when notified of accrual (s 17(3)). Record investment details in the investment ledger including name, detailed description, date, amounts credited/debited and balance (s 18).
Interest treatment (s 20)
Ensure interest accruing on trust investments is added to the trust moneys and dealt with as trust moneys in accounting and distribution (s 20).
Journal transfers and authorisation (s 21)
Permit transfers between trust ledger accounts by journal entry only where entitlement to pay for the transfer purpose exists (s 21(2)).
Ensure trust account journals include date, source and destination person and matter descriptions, amount transferred, a brief description, and signed authorisation by the trustee or authorised signatory (s 21(3)).
Computerised accounting systems (s 22)
Confirm systems have capacity and backup capability; implement backups at least monthly and store backup media in a fire-proof location unaffected by magnetic interference (s 22(2)(a)-(c)).
Configure the system so deletion of a trust ledger account is not possible unless the account has a zero balance and a visible pre-deletion record is preserved (s 22(2)(d)).
Ensure amendments are made by separate transactions and that reports are sequentially numbered under program control (s 22(2)(e)-(f)).
Make sure the system can produce contemporaneous chronological reports of transactions producing debit balances and can produce chronological records of changes to names, matter descriptions, amounts and financial institution account numbers (s 22(2)(g), s 22(3)).
Produce and keep monthly print-outs of the cash book and other required reconciliations (s 22(4)). Before deleting any ledger account from the system, make a print-out and keep it securely (s 22(5)).
Audit readiness and cooperation (ss 23-27)
Ensure auditors appointed under the Act can obtain the information required by the schedule referenced in s 23. Keep and hand to auditors copies of previous auditor reports (s 24).
Where previous auditor reports are not available, prepare an investment statement for each investment held at the start of the audit period with full name, date made, amount, description, financial institution name and account number, and accompany it with a statutory declaration by the trustee (s 25).
Prepare for unannounced examinations by ensuring records for the examination period are current and complete (s 27).
Acknowledge that audit and examination procedures should align with the Audit Standards and Audit Guidance Statements (s 26).
Auditor professional indemnity (s 28)
Where you appoint an auditor under s 14 of the Act, confirm that the auditor has professional indemnity insurance of at least $250,000 (s 28).
Document control, retention and destruction
Maintain a document retention policy that ensures all required printed records, copies of receipts, deposit acknowledgements, cheque butts, journal entries and print-outs are retained securely in line with s 22 and other record-keeping provisions.
Only destroy unused receipt forms when an auditor gives a written direction to do so; the auditor must notify the supervising entity, and trustees must not contravene the auditor’s direction (s 7).
Policies, training and internal controls
Create and maintain written policies covering receipt issuance, cheque signing, deposit acknowledgement capture for EFTs, cash-book and ledger posting timelines, monthly reconciliation processes, investment authorisation and deposit flows, journal authorisation and computer-system change control.
Provide staff training on the 2-day posting requirement, the deposit-before-investment rule, EFT acknowledgement capture, and computer-system amendment and deletion controls.
Regular compliance self-audit
Establish a monthly compliance checklist referencing s 11-12 and s 22 to ensure cash book posting, ledger posting, and reconciliation print-outs are made and stored.
Conduct periodic internal reviews that mirror the external auditing standards cited in s 26.
Confirm temporary amendment status
Where processes were changed to accommodate the 2024 amendments shown as expiring on 1 April 2026, confirm whether those provisions remain in force in the current statutory consolidation and update operational processes accordingly (see annotations under Pt 5).
This checklist aligns a trustee’s operational controls to the Regulation’s obligations, allocates documentary checkpoints and assigns responsibilities for capture, retention and audit evidence. Implementation of these controls will reduce audit exceptions and litigation risk associated with contraventions attracting penalty units.
A receipt form must be headed ‘Trust Account Receipt’, and a completed receipt form must contain the following particulars—
the name of the trustee on whose behalf the receipt is given;
the date the receipt is given;
the name of the person to whom the receipt is given;
the name of the person on whose behalf the trust moneys are received;
a brief description of the matter for which the trust moneys are received;
the amount of trust moneys received, in words and figures;
how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer;
the signature of the person giving the receipt.
Each receipt form must include provision for the particulars mentioned in subsection (1) .
A duplicate receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
(sec.5-ssec.1) A receipt form must be headed ‘Trust Account Receipt’, and a completed receipt form must contain the following particulars— the name of the trustee on whose behalf the receipt is given; the date the receipt is given; the name of the person to whom the receipt is given; the name of the person on whose behalf the trust moneys are received; a brief description of the matter for which the trust moneys are received; the amount of trust moneys received, in words and figures; how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer; the signature of the person giving the receipt.
(sec.5-ssec.2) Each receipt form must include provision for the particulars mentioned in subsection (1) .
(sec.5-ssec.3) A duplicate receipt form must also be headed ‘Office Copy’ or ‘Duplicate Copy’.
(a) the name of the trustee on whose behalf the receipt is given;
(b) the date the receipt is given;
(c) the name of the person to whom the receipt is given;
(d) the name of the person on whose behalf the trust moneys are received;
(e) a brief description of the matter for which the trust moneys are received;
(f) the amount of trust moneys received, in words and figures;
(g) how the trust moneys are received, for example, in cash, by cheque or by electronic funds transfer;
(h) the signature of the person giving the receipt.
sec.6 Dealing with trust account receipt forms
sec.6 Dealing with trust account receipt forms
A trustee must ensure—
a trust account receipt form—
is used only for the receipt of trust moneys; and
includes the particulars mentioned in section 5 (1) ; and
is given to the person from whom trust moneys are received; and
a legible copy of each trust account receipt form given by the trustee is kept securely in the trustee’s records; and
if the trustee cancels a receipt form, the form is kept securely in the trustee’s records.
Maximum penalty—10 penalty units.
(a) a trust account receipt form— (i) is used only for the receipt of trust moneys; and (ii) includes the particulars mentioned in section 5 (1) ; and (iii) is given to the person from whom trust moneys are received; and
(i) is used only for the receipt of trust moneys; and
(ii) includes the particulars mentioned in section 5 (1) ; and
(iii) is given to the person from whom trust moneys are received; and
(b) a legible copy of each trust account receipt form given by the trustee is kept securely in the trustee’s records; and
(c) if the trustee cancels a receipt form, the form is kept securely in the trustee’s records.
(i) is used only for the receipt of trust moneys; and
(ii) includes the particulars mentioned in section 5 (1) ; and
(iii) is given to the person from whom trust moneys are received; and
sec.7 Trustee may destroy unused receipt forms
sec.7 Trustee may destroy unused receipt forms
This section applies if an auditor who audits a trustee’s records and trust accounts under the Act reasonably believes the trustee does not intend to use a receipt form.
The auditor may give the trustee a written direction to destroy the receipt form.
The trustee must not contravene the direction.
Maximum penalty—5 penalty units.
If the auditor gives a trustee a written direction to destroy a receipt form, the auditor must, as soon as practicable after giving the direction, give to the supervising entity a notice stating—
the trustee’s name and address; and
the trustee’s general trust account name and number; and
the number of the receipt form.
Maximum penalty—5 penalty units.
In this section—
reasonably believes means believes on grounds that are reasonable in the circumstances.
(sec.7-ssec.1) This section applies if an auditor who audits a trustee’s records and trust accounts under the Act reasonably believes the trustee does not intend to use a receipt form.
(sec.7-ssec.2) The auditor may give the trustee a written direction to destroy the receipt form.
(sec.7-ssec.3) The trustee must not contravene the direction. Maximum penalty—5 penalty units.
(sec.7-ssec.4) If the auditor gives a trustee a written direction to destroy a receipt form, the auditor must, as soon as practicable after giving the direction, give to the supervising entity a notice stating— the trustee’s name and address; and the trustee’s general trust account name and number; and the number of the receipt form. Maximum penalty—5 penalty units.
(sec.7-ssec.5) In this section— reasonably believes means believes on grounds that are reasonable in the circumstances.
(a) the trustee’s name and address; and
(b) the trustee’s general trust account name and number; and
(c) the number of the receipt form.
pt.3-div.4 Trust account deposit book
Trust account deposit book
sec.8 Trust account deposit forms
sec.8 Trust account deposit forms
A trust account deposit form must contain the following particulars—
the name and account number of the trust account into which the trust moneys are deposited;
the amount and the date of the deposit;
the number of the trust account receipt form given by the trustee for the trust moneys;
the signature of the depositor.
(a) the name and account number of the trust account into which the trust moneys are deposited;
(b) the amount and the date of the deposit;
(c) the number of the trust account receipt form given by the trustee for the trust moneys;
(d) the signature of the depositor.
sec.9 Depositing trust moneys
sec.9 Depositing trust moneys
If a trustee deposits trust moneys into a trust account, the trustee must ensure—
if the trust moneys are deposited other than by way of electronic funds transfer—a copy of the trust account deposit form is kept securely in the trustee’s records; and
if the trust moneys are deposited by way of electronic funds transfer—
the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and
the document is kept securely in the trustee’s records.
Maximum penalty—10 penalty units.
(a) if the trust moneys are deposited other than by way of electronic funds transfer—a copy of the trust account deposit form is kept securely in the trustee’s records; and
(b) if the trust moneys are deposited by way of electronic funds transfer— (i) the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and (ii) the document is kept securely in the trustee’s records.
(i) the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and
(ii) the document is kept securely in the trustee’s records.
(i) the trustee receives a document, other than a financial institution statement balance, from the financial institution into which the trust moneys are paid acknowledging the receipt of the trust moneys into the trust account; and
(ii) the document is kept securely in the trustee’s records.
pt.3-div.5 Disbursement of trust moneys
Disbursement of trust moneys
sec.10 Disbursements
sec.10 Disbursements
A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless—
the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and
if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by—
if the trustee is an individual—the trustee or a person appointed by the trustee; or
if the trustee is a partnership—a partner.
Maximum penalty—10 penalty units.
If the trustee draws a cheque under section 12 (1) of the Act , the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document—
the date the cheque is drawn;
the name of the person to whom the cheque is made 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 withdrawn.
Maximum penalty—10 penalty units.
Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on—
the trustee’s cheque; and
the trustee’s cheque butt or other document.
Maximum penalty—10 penalty units.
A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records.
a cheque requisition form
s 10 amd 2024 SL No. 22 s 7
(sec.10-ssec.1) A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless— the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by— if the trustee is an individual—the trustee or a person appointed by the trustee; or if the trustee is a partnership—a partner. Maximum penalty—10 penalty units.
(sec.10-ssec.2) If the trustee draws a cheque under section 12 (1) of the Act , the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document— the date the cheque is drawn; the name of the person to whom the cheque is made 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 withdrawn. Maximum penalty—10 penalty units.
(sec.10-ssec.3) Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on— the trustee’s cheque; and the trustee’s cheque butt or other document. Maximum penalty—10 penalty units.
(sec.10-ssec.4) A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records. a cheque requisition form
(a) the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and
(b) if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by— (i) if the trustee is an individual—the trustee or a person appointed by the trustee; or (ii) if the trustee is a partnership—a partner.
(i) if the trustee is an individual—the trustee or a person appointed by the trustee; or
(ii) if the trustee is a partnership—a partner.
(i) if the trustee is an individual—the trustee or a person appointed by the trustee; or
(ii) if the trustee is a partnership—a partner.
(a) the date the cheque is drawn;
(b) the name of the person to whom the cheque is made 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 withdrawn.
(a) the trustee’s cheque; and
(b) the trustee’s cheque butt or other document.
pt.3-div.6 Trust account cash book
Trust account cash book
sec.11 Trust account cash book—entries
sec.11 Trust account cash book—entries
If a trustee receives trust moneys, or pays trust moneys to someone, the trustee must, within 2 days after the day the moneys are received or paid, enter the following particulars in the trust account cash book—
if trust moneys are received—
the date the moneys are received; and
the name of the person from whom the moneys are received; and
the name of the person on whose behalf the moneys are received; and
a brief description of the matter for which the moneys are received; and
the amount received; and
the date the trust moneys are paid into the trust account;
if trust moneys are paid—
the date the moneys are paid; and
the name of the person to whom the moneys are paid; and
the name of the person on whose behalf the moneys are paid; and
a brief description of the matter for which the moneys are paid; and
the amount paid.
Maximum penalty—10 penalty units.
However, if a trustee receives trust moneys by way of electronic funds transfer, the trustee may enter the particulars in the trust account cash book on the day the tr
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