Trust account rules for Queensland motor dealers
Consignment money isn’t yours until the deal is done. Queensland’s Agents Financial Administration Act sets out how you bank it, record it, pay it out and have it audited.
- Deposit trust money before the end of the first business day after you receive it.
- Update the receipt register within 2 business days, and reconcile within 5 days after each month ends.
- Withdraw only once the transaction is finalised, and pay the seller within 14 days of a written request or otherwise within 42 days.
- Appoint an auditor within 1 month of opening the account.
Which law applies
Trust accounts for motor dealers are governed by the Agents Financial Administration Act 2014. The Motor Dealers and Chattel Auctioneers Act 2014 also requires a principal licensee to keep a trust account, and if you sell on consignment you must have one.
Opening the account
- Only a principal agent can open a trust account.
- Notify the Office of Fair Trading within 2 months using Form 5 (no fee).
- Appoint an auditor within 1 month of opening it, and notify the Office of Fair Trading within 1 month of the appointment.
The deadlines
| What | Deadline |
|---|---|
| Deposit trust money | Before the end of the first business day after you receive it |
| Update the receipt register | Within 2 business days of using a receipt |
| Reconcile the account | Within 5 days after the end of each month |
| Pay the person entitled, after a written request | Within 14 days of the request |
| Pay the person entitled, otherwise | Within 42 days after the transaction is finalised |
Failing to deposit on time carries up to 200 penalty units or 2 years’ imprisonment. A written account to the seller follows the same 14 and 42-day timing.
Taking money out
You can only withdraw once the transaction is finalised, meaning settled or terminated. The seller is paid before or alongside other parties, and your commission comes out last. Only a licensee can operate a trust account; registered salespeople must never operate one.
The audit
Your audit covers the 12 months ending on your “audit month”, which is the eighth month after your licence was first issued. The audit report is due within 4 months after that month ends and is lodged online. Your auditor also makes two unannounced examinations each audit period.
Keeping records
Keep trust records for 5 years.
Questions dealers ask
Do I have to wait 42 days to pay the seller?
No. 42 days after finalisation is the latest you can pay, not a holding period. If the seller asks in writing, you must pay within 14 days of the request.
Can my salesperson bank or withdraw trust money?
Registered salespeople must never operate a trust account. Only a licensee can.
Sources
Rules and fees change. Check the official source before you rely on anything here; this guide is general information, not legal advice.