Real Estate Agent and Business Broker’s Trust Account Audits
The Property, Stock and Business Agents Act 2002 administered by the Office of Fair Trading, requires all licensees to lodge either a trust account auditor’s report or a statutory declaration. See above table for key dates for lodgment of the audit report.
Every year towards the end of the audit period, the Office of Fair Trading will post out an auditors report form and a statutory declaration form to each licensee.
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You still need to lodge a report even if you ceased trading during the period or only traded for part of the period.
In certain circumstances you will need to file a statutory declaration. If you did not hold or receive any money for or on behalf of any person during the audit period, you must lodge a statutory declaration form to this effect. If you held money in a trust account during the audit period, you must engage an auditor and lodge an auditor’s report form.
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The auditor must be a currently registered company auditor. Michael Quinn is a certified auditor by the Australian Institute of Chartered Accountants and this allows Quinns to assist licensees in ensuring their trust accounts meet Fair Trading regulations and undertake the audit, making the reporting process a simple step.
In the case that your trust accounts were inactive for the audit period and you will be filing a statutory declaration, then an auditor is not required and you can complete the form before a Justice of the Peace or a solicitor, sign it, have it witnessed and post the form to Fair Trading.
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As mentioned above, the licensee can file the statutory declaration themselves.
You will need to inform the auditor the due date of your report and ensure that they will be able to complete the report in time to enable lodgment by the due date.
When the report is completed, the auditor will send the report to you so you can lodge it with Fair Trading. Do not rely on your auditor to lodge the report.
The Act makes it quite clear that it is the licensee’s responsibility to ensure the report is lodged by the due date. A licensee cannot pass this responsibility on to an auditor or any of the auditor’s employees.
The auditor's report should be posted to the address provided on the form and allow time for delivery.
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All licensees are required to lodge by the due date. The deadline can be extended but only in exceptional circumstances which existed over the period of time and can be supported by evidence.
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If you do not lodge an auditor’s report or a statutory declaration by the due date or at all, without an acceptable reason, The Office Fair Trading will contact you and take action based on the circumstances, your lodgment history and any other previous matters.
Action may include issuing a formal caution, a fine of $550 for a late lodged audit by an individual or $1,100 for a corporation. A $1,100 fine applies for a late lodged statutory declaration by an individual or corporation. Prosecution could also occur or disciplinary action taken and a notice to show cause issued which can result in a monetary penalty, licence suspension or cancellation, or disqualification of a person from holding a licence.
If you are required to lodge an auditor’s report and fail to lodge, you will not be able to renew your licence.
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