NSW Fair Trading has issued more than $200,000 in fines following a statewide compliance operation targeting real estate businesses responsible for managing client money. 

The results, announced on the 13th of August, included 34 businesses being put on notice and facing potential licence suspension, 41 overdue trust account audits subsequently being submitted, 32 warnings, three industry bans and six mandatory training orders. 

For agencies that operate trust accounts, the timing is particularly relevant. Trust account audits for the 2025–26 audit period are due to NSW Fair Trading by the 30th of September 2026. 

The recent enforcement action provides a timely reminder that completing the audit is not simply a year-end administrative exercise. Licensees are responsible for making sure their agency's audit obligations are met, and repeated failure to do so can carry serious consequences. 

What happened? 

The statewide operation was conducted by NSW Fair Trading's Strata and Property Taskforce and focused on businesses and licence holders entrusted with consumer funds. Fair Trading reported that the operation targeted higher-risk businesses and licence holders using intelligence-led compliance data. While the regulator stressed that most property professionals meet their trust account obligations, the operation identified a smaller number of businesses that had failed to comply. 

One Western Sydney agency was fined $22,000 and lost its licence after repeatedly failing to provide mandatory trust account audits despite multiple reminders and deadline extensions. The business was also disqualified from the industry and barred from directing, managing or operating a licensed property business until the outstanding audit was completed. 

Another Sydney agency was initially fined $5,500 for failing to submit its required audit. After the breach was repeated, a further $11,000 fine was issued and its Licensee in Charge was directed to undertake additional training. 

The cases demonstrate that an outstanding audit can move beyond a missed administrative deadline when it remains unresolved. 

When is the NSW trust account audit due? 

For NSW property agencies that received or held trust money during the audit period ending on the 30th of June 2026, trust account records are generally required to be audited by a qualified auditor. The auditor's report must then be lodged through NSW Fair Trading's online system by the 30th of September 2026. 

Importantly, appointing an auditor doesn't transfer responsibility for meeting the deadline. NSW Fair Trading states that it remains the licensee's responsibility to ensure the audit report is lodged correctly and on time.  For a Licensee in Charge, that means knowing the status of the audit rather than assuming it is being handled elsewhere. 

Don't wait until the end of September to check 

With the deadline approaching, agencies should already know whether their audit is progressing as expected. That includes confirming the auditor has been engaged and has access to the records and documents required to complete the audit. Any requests for additional information should be dealt with promptly, and the LIC should understand whether there are outstanding records, discrepancies or other matters that could delay completion. 

It is also worth confirming who will lodge the final report and how the agency will verify that lodgement has actually occurred. The distinction between "the auditor is dealing with it" and "we know our audit has been lodged" may sound minor, but the ultimate responsibility for ensuring the requirement is met remains with the licensee. 

What if the audit is late? 

NSW Fair Trading advises that audits lodged between the 1st of October and the 31st of December are classified as late unless prior approval has been obtained, and penalties may apply. The recent enforcement operation demonstrates what can happen where outstanding audit requirements continue beyond the initial deadline. 

The most serious examples announced by Fair Trading involved repeated failures despite reminders and extensions. The consequences included fines, mandatory training, licence loss and disqualification from operating a licensed property business. 

The lesson for agencies isn't that a single administrative mistake automatically produces those outcomes. It is that an unresolved compliance issue should not be allowed to remain unresolved. If there is a problem with the audit, dealing with it early is considerably better than discovering it when the deadline has already passed. 

Trust account responsibility doesn't stop with the annual audit 

The annual audit is an important checkpoint, but trust account compliance is an ongoing responsibility.  NSW Fair Trading states that only the Licensee in Charge can authorise withdrawals from a trust account and that this authority cannot be delegated. The LIC must review and approve trust account transactions before they occur. 

Agencies therefore need appropriate processes throughout the year for receiving and handling trust money, maintaining records, authorising transactions and identifying discrepancies. A clean audit should be the result of those processes working throughout the year, rather than a scramble to bring everything together each September. 

Penalties for trust account offences have increased 

The latest enforcement activity also comes shortly after changes to NSW property and stock agent laws.  From the 29th of June 2026, maximum court-imposed penalties increased for a range of offences, including some offences involving the mishandling of trust money. For some offences, maximum penalties can now reach $110,000 for a corporation and $55,000 for an individual. 

Fair Trading has also received strengthened disciplinary powers, including the ability to direct an agent or assistant agent to undertake specified further training or education in certain circumstances. This doesn't change what agencies should already be doing with trust money, but it does increase the potential consequences where legal obligations aren't met. 

A practical trust account audit check before the 30th of September 

For agencies operating trust accounts, there are several questions worth answering now: 

• Has the required trust account auditor been engaged?  

• Have they received all the records and information they need?  

• Have they requested anything further from the agency?  

• Are there discrepancies or outstanding matters requiring attention?  

• Is the audit on schedule to be completed before the deadline?  

• Who is responsible for ensuring the report is lodged?  

• How will the LIC confirm that lodgement has actually occurred?  

• Are any issues identified through the audit also being addressed within the agency's procedures?  

If the answer to any of those questions is unclear, there is still time to find out. 

Use the audit as a compliance health check 

There is also value in looking beyond whether the report gets submitted by the deadline. If an audit identifies recurring record-keeping issues, inconsistent processes or areas where staff aren't following the agency's procedures, those findings can provide an opportunity to strengthen the business before the next audit period. That's where compliance becomes more useful than simply meeting a deadline. 

At Under The Hammer, our Compliance Services help real estate agencies review their existing practices, identify potential gaps and develop practical processes around their regulatory obligations. Our Supervision Guidelines Compliance Dashboard can also help Licensees in Charge maintain greater visibility over key compliance requirements across the agency throughout the year. 

The immediate priority, however, is straightforward. 

Trust account audits for the 2025–26 audit period are due by the 30th of September 2026. If your agency holds trust money, now is the time to confirm exactly where your audit stands. 

References 

NSW Government, More than $200,000 in fines as NSW Government targets rogue real estate operators, published on the 13th of August 2026. Read the NSW Government announcement 

NSW Fair Trading, Trust accounts, including information about trust account audit and lodgement requirements. NSW Fair Trading trust account information 

NSW Fair Trading, Changes to property and stock agents laws, published on the 8th of July 2026. NSW Fair Trading legislative update 

This article provides general information only and does not constitute legal advice. Agencies should refer to current NSW Fair Trading requirements and obtain professional advice relevant to their circumstances where required.