What a Sydney Real Estate Agency Needs From Its Bookkeeper

Updated: November 2026

To have this handled on a fixed monthly fee, see NSW real estate agency bookkeeping on a fixed fee.

Good real estate agency bookkeeping in NSW starts with a clear line between two sets of books. The trust account holds client money and is governed by the Property and Stock Agents Act 2002, with the licensee in charge responsible for it. The business account is the agency itself: commissions earned, salaries, agent splits, marketing, rent and tax. Most agencies keep the trust side tidy because the audit forces them to. The business side is where profit quietly leaks. This guide explains what sits on each side and what a bookkeeper should do on the business side.

For a broader overview of agency finance, see our real estate agency bookkeeper Sydney page. This article focuses on the trust and business split.

What belongs in the trust account?

Under NSW rules, licensees must hold clients' funds in a trust account, and that money can only be used for the client and disbursed as the client directs. Typical trust money includes rent collected for landlords, bonds handled before lodgement where applicable, and sale deposits held by the agency.

Key points from NSW Fair Trading guidance:

Only the licensee in charge can authorise trust account withdrawals, and that authority cannot be delegated.
Trust accounts must be held with an approved authorised deposit-taking institution in NSW.
Trust records must be audited for the year ending 30 June, and the auditor must submit the audit through the Auditor's Report Online portal by 30 September.
Trust money held for more than 2 years is unclaimed money and is dealt with through Revenue NSW.

A bookkeeper can help prepare records and reconciliations for the trust account, but the legal responsibility sits with the licensee. That is a line to respect, and any bookkeeper who blurs it is a risk.

What belongs in the agency's own books?

The business books show whether the agency makes money. They should include:

Commission income once it is transferred from trust to the business account in line with the authority, recorded by office, by sales and property management, and ideally by agent.
Property management fees as a separate income line, since this recurring revenue is often what gives an agency its value.
Agent remuneration, whether salary plus commission, commission only, or contractor arrangements.
Marketing costs that the agency pays and recovers from vendors, kept separate from the agency's own brand marketing.
Overheads such as rent, software, vehicles and franchise fees if you are part of a network.

How should commissions and agent pay be handled?

Commissions are where payroll mistakes are most common in agencies:

Under Payday Super, from 1 July 2026, qualifying earnings include all commissions paid to employees, and super must reach the fund within 7 business days after each payday.
Agents engaged as contractors who are paid mainly for their labour can still be employees for super guarantee purposes. The label in the agreement is not the deciding factor.
Commission splits should be calculated from a written schedule, reconciled to the trust transfers, and paid on a set cycle so agents can check their own numbers.

Our payroll service handles commission runs through Single Touch Payroll with super paid each payday.

What GST issues come up for agencies?

Commissions and management fees earned by a GST-registered agency are generally taxable, so GST is collected on the agency's fees. The traps tend to be:

Recording the gross sale deposit or rent as agency income instead of only the fee earned.
Recovering vendor-paid advertising without a consistent GST treatment.
Mixing franchise or network levies into one expense line so the GST credits are hard to verify.

Your accountant should confirm the treatment for anything unusual, and your bookkeeper should apply it the same way every month.

What should a monthly agency report show?

A useful monthly report for an agency principal answers a few questions quickly:

Sales commission and property management income for the month and year to date, by office.
Agent cost as a share of commission, so you can see if splits are drifting.
Rent roll size and management fee income trend.
Cash in the business account against the next month's payroll, super, BAS and rent.
Any reconciliation differences between trust transfers and commission recorded.

How do you prepare for the 30 September trust audit?

Even though the trust audit is the licensee's responsibility and the auditor lodges it, the business side affects how smoothly it goes. A bookkeeper can help by:

Reconciling commission transfers from trust to business every month so they match the authority and the ledger.
Keeping supporting documents for each transfer in one place.
Booking the auditor early. NSW Fair Trading says late lodgement can lead to a $550 fine for an individual or $1,100 for a corporation, and may affect licence renewal.

What do most agencies miss?

Agencies with a clean trust audit often still cannot answer whether last month made money. The trust account proves you handled client money properly. It does not tell you whether your agent splits, marketing spend and office costs leave a profit. That answer only comes from a business ledger that is reconciled weekly and coded consistently.

What does a weekly routine look like for an agency?

Reconcile the business bank account and cards in Xero.
Record commission transfers from trust against the matching sale or management fee.
Check agent commission calculations against the written split schedule before the pay run.
Run payroll with Single Touch Payroll and pay super for the pay run.
Code marketing costs as either vendor-recoverable or agency brand marketing.
Note any differences between trust transfers and business income for the principal to review.

A weekly routine means the monthly report is quick to produce and the principal sees problems while they are still small. It also gives the trust auditor a clean trail on the business side, which tends to make the annual audit faster.

For multi-office agencies, add one more step: compare each office's commission income and agent cost every month. Differences between offices are often the first sign that a split arrangement or marketing policy needs a second look.

FAQ

Can our bookkeeper manage the trust account?

A bookkeeper can help with trust record-keeping and reconciliations under the licensee's supervision, but only the licensee in charge can authorise withdrawals and the licensee remains responsible.

When is the NSW trust account audit due?

The audit period ends on 30 June and the audit must be submitted by 30 September, through the Auditor's Report Online portal.

Do we pay super on agent commissions?

Under Payday Super, qualifying earnings include all commissions paid to employees. Contractors paid mainly for their labour may also attract super guarantee. Check the ATO guidance for each arrangement.

Should property management and sales be reported separately?

Yes. They behave differently and are valued differently, so reporting them separately gives you a much clearer picture.

Want the business side of your agency as tidy as the trust side?

We keep agency ledgers reconciled weekly, run commission payroll with super each payday and send a monthly report you can read in five minutes.

Next step: send us a message and a real person replies within a few working hours, or book a free Xero Roast, a 15-minute plain-English review of your file with a fixed quote at the end. Our fixed monthly packs include a 4-hour reply guarantee, no lock-in and a 30-day money-back guarantee.

About Sydney Bookkeeper

Sydney Bookkeeper is the modern, fixed-price Sydney bookkeeper for businesses with staff that are tired of slow, hourly, jargon-spouting incumbents. We work with professional services firms, construction and property businesses, agencies, tech and ecommerce companies, hospitality groups, and health practices across Sydney. Monthly bookkeeping, BAS lodgement, payroll, and Xero file cleanups, all on fixed monthly pricing, no lock-in.

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The team uses a registered BAS Agent for all BAS and IAS lodgement services. Full registration details, agent particulars, and copies of the Tax Practitioners Board (TPB) Code of Professional Conduct, the TPB complaints process, and any conditions on the agent's registration are available on request by emailing hello@sydneybookkeeper.com. This content is general information only, written for Australian small and mid-market businesses. It does not constitute tax, financial product, or legal advice and should not be relied on as such. Tax obligations depend on your individual circumstances. For advice specific to your business, contact the team directly or consult a registered tax agent or licensed financial adviser. Sydney Bookkeeper is not a licensed tax agent or licensed financial adviser. Information was current at the time of publication and may change without notice. We review and update guides periodically.

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