Trust account handbook - Department of Commerce - wa.gov.au

As well as advising Consumer Protection, the appointed trust account auditor must be advised of the
closure of the business. All current clients of the business should also be notified.
In addition:
• Where there is a change of the entity which owns the business, and transfer or closure of a
business, a termination audit must be carried out within three months of the change occurring
(ie when the triennial certificate ceases to have effect) and the auditor must deliver a termination
audit report to the Commissioner within two months after the end of the three-month period.
• If funds held in the trust account cannot be disbursed within three months following the closure
of the agency, they may be disbursed to another agent or solicitor’s trust account provided there
is written agreement from the parties who own the funds, which authorises the agent to deal with
the money as instructed.
• If funds are still held in the trust account after a termination audit report has been delivered
to Consumer Protection, the auditor is required to deliver a final clearance letter to the
Commissioner when the trust account has reached a nil balance.
• If unclaimed money remains in the trust account, they may be disbursed in accordance with the
provisions of the Unclaimed Monies Act 1990 (see 3:9 Unclaimed trust money).
• All accounting records must be kept for not less than six years from the date on which the
money was received.
Refer: section 51(8)(b) of the Act
3.9 Unclaimed trust money
An agent must notify the Western Australian State Treasurer (the Treasurer) of any unclaimed
money held in a trust account for six years or more as at 31 December each year. Under section 8
of the Unclaimed Money Act 1990, this notification should be provided to the Treasurer no later than
31 January in the succeeding year.
The Unclaimed Money Act 1990 provides for voluntary payments to be made where the money has
been held for a period of not less than two years. Where an agent ceases to operate and the trust
account is being finalised, the Department of Treasury (Treasury) will accept unclaimed money that
has been deposited for less than two years.
Treasury requests agents note the following points when making a payment:
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• one transfer to be made in the middle of June;
• all money in that transfer must have been held, unclaimed, for at least two years (exceptional
cases may apply, such as when an agent ceases to operate); and
• Treasury must be provided with a covering letter, a cheque for the amount being transferred and
the following payment information:
❍ ❍ name of the owner of the money (Treasury may not accept money where ownership is in
dispute or unclear, eg the agent should not list both a seller and a buyer as the owner);
❍ ❍ owner’s last known address (street name, suburb/city);
❍ ❍ amount payable;
❍ ❍ date cheque issued; and
❍ ❍ description of the payment.
SETTLEMENT AGENTS’ TRUST ACCOUNT HANDBOOK