Role of the trustee on accountant trust accounts
A trust account is a business bank account used by a public accountant to hold funds on behalf of clients.
Prior to 1 April 2024, public accountants who managed client funds were considered a trustee under the Trust Accounts Act 1973 (the Act) and Trust Accounts Regulation 1999 (the Regulation), and must therefore:
- comply with prescribed requirements of the trust account legislation
- report annually to the supervising entity that oversights trust accounts in Queensland (i.e. the Department of Justice and Attorney-General)
- provide other information as requested by us.
The Justice and Other Legislation Amendment Act 2023 removed references to public accountants from the Trust Accounts Act 1973 and Trust Accounts Regulation 1999, resulting in public accountants trust accounts now being self-regulated.
For further information on requirements post 1 April 2024, refer to your relevant accounting body, e.g:
- CPA Australia
- Chartered Accountants Australia & New Zealand
- Institute of Public Accountants
- Tax Practitioners Board
No further reporting is required for public accountants trust accounts which were registered with this office prior to 31 March 2024.
Reporting for trust accounts not registered prior to 31 March 2024
If you held a public accountants trust account created before 31 March 2024, which was not registered with the Department, you will need to complete the following steps:
- You must lodge a Form 1—Notification of new trust account. This notice confirms that you have registered as trustee under the Act.
- You must appoint an auditor whom meets the criteria under the Act—see sections 14 and 15. Provide the full name and business address of the auditor and ask them to endorse that appointment by emailing us.
- You must lodge an independent audit report for the 2023-2024 financial period.
Independent auditor’s report
It is the trustee’s responsibility under section 16(1)(b) to lodge an independent auditor’s report for the financial period ending 31 March each year.
Under the changes to the Act and Regulation effective 1 April 2024, the 2023-24 financial period is the final financial period for which an independent auditor's report is required.
The report must fully address the 25 point checklist, as prescribed at section 23(1) of the regulation.
Further guidance on the checklist is provided in the information for audit report schedule (Form 5).
The audit report must be submitted on the auditor’s business letterhead and forwarded electronically by the trustee.
Closing a trust account
If your unregistered trust account was closed prior to 31 March 2024, but within the 2023-24 financial period, the following is required:
- immediately complete and lodge a closure of a trust account (Form 6)
- arrange for an independent audit of the trust account from the start of the financial year up to and including the date of closure
Contact us
Internal Audit, Department of Justice:
Email: trust.accounts@justice.qld.gov.au
Phone: (07) 3033 6726
More information
- Trust Accounts Act 1973
- Trust Accounts Regulation 1999
- Justice and Other Legislation Amendment Act 2023