NSW Fair Trading hands out $214,500 in penalties as trust audit deadline passes

NSW Fair Trading has taken disciplinary action against more than 30 businesses and individuals for failing to meet their trust account audit obligations, issuing $214,500 in monetary penalties, and has warned agencies that the deadline for 2025-26 audits has passed and that a further tranche of agents is now being assessed.

The regulator reported the results of its latest compliance operation in the October edition of its Property Matters bulletin. The operation targeted higher-risk businesses and licence holders using intelligence-led compliance data, and produced 32 reprimands, one licence cancellation, three disqualifications and six directions to undertake training alongside the monetary penalties. It also led to 41 overdue trust account audits being submitted.

NSW Fair Trading said most agents comply with their audit obligations, but that the operation "uncovered dozens of businesses and licence holders falling short of their legal and professional obligations".

With the 2025-26 deadline now past, any agency that operated a trust account during the period should have its audit completed and submitted, or an approved extension in place. For those still outstanding, the regulator's advice is to contact the auditor immediately to confirm the audit's status, provide any outstanding records without delay, follow up until the audit is complete and seek advice promptly if issues arise. It said delays in providing records, incomplete documentation and unresolved reconciliation issues are the common reasons audits stall.

The consequences extend beyond the penalty itself. NSW Fair Trading said penalties may be published on its Name and Shame Register and that non-compliance may affect the ability to renew or continue operating under a licence.

The bulletin also confirms that the 2026-27 mandatory CPD topics for NSW property and strata professionals are available. The CPD year runs from 1 July 2026 to 30 June 2027, and the regulator has urged agents to book with an Approved Provider now, warning that failure to meet CPD requirements may also result in compliance and enforcement action.