Here’s What the Law Says (Outside NSW)
If you’re a real estate agent operating in Western Australia, South Australia, Tasmania, or other Australian states and territories, managing sales and rental trust funds separately is essential—not just for legal compliance, but also for transparency, fraud prevention, and operational best practice.
While state legislation may vary in how trust accounts must be structured, one consistent expectation across jurisdictions is that sales deposits and rental income must be tracked independently with clear and accurate records.
Western Australia
Under the Real Estate and Business Agents Act 1978, WA agents are required to manage trust accounts properly for all client monies. While WA legislation does not explicitly require separate trust accounts for sales and rentals, it is highly recommended to maintain separate records—and ideally, separate accounts.
This supports clearer reconciliation, better internal controls, and reduces the risk of misuse or reporting errors. The Department of Consumer Protection encourages these practices for smooth audits and accountability.
South Australia
In SA, the Land Agents Act 1994 and Regulations 2010 require agents to maintain distinct ledger accounts for sales and rental transactions. Even if both types of funds are held in a single trust account, the records must remain clearly separated and reconcilable.
Most compliant agencies choose to maintain separate trust accounts to reduce audit complexity and enhance internal controls. Agents must also ensure that their trust accounting software supports proper record integrity—no deletions, alterations, or backdating of transactions.
Tasmania
Tasmanian legislation—the Property Agents and Land Transactions Act 2016—requires that agents keep accurate and separate records for different types of trust money. While it may be legally permissible to hold both sales and rental funds in one trust account, the best practice is to keep separate ledgers, and ideally separate accounts, to protect against fraud, ensure clearer audit trails, and reinforce segregation of duties.
Why You Should Separate Trust Records (Even If It’s Not Mandated)
Even in states where the legislation doesn’t explicitly require separate trust accounts for sales and rentals, it’s strongly recommended that agents maintain distinct records. Here’s why:
- Better audit outcomes
- Improved transparency for clients and auditors
- Stronger fraud protection
- Easier reconciliation and fewer errors
- Greater accountability and internal control
What About the Territories?
Legislation in the Northern Territory and ACT may differ, so agents in those regions should seek specific advice or refer to their local regulator.
Not Sure if You’re Compliant?
If you’re unsure whether your trust accounting setup meets your state’s compliance requirements or best practices, it’s worth reviewing your systems with an expert.
At End of Month Angels, we support agencies across Australia with trust account reviews, reconciliations, and setup of compliant and efficient systems—including the separation of rental and sales trust records.
Get in touch today to ensure your agency is compliant, protected, and audit-ready.