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Bond and Trust Account?

Discussion in 'Accounting & Tax' started by fullylucky, 14th Sep, 2016.

  1. fullylucky

    fullylucky Well-Known Member

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    How is bond handled in the trust account?

    Does tenants pay into Trust account for Bond Deposit?

    Then you transfer the money out of the trust account to RTA?

    Do you have to use a certain form to do this?

    Do you have to keep track if Tenant has paid and when you transfer the bond to RTA?
    If you don't keep track, your trust account won't balance at the end of the month?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    In NT it stays there.

    In all other states the the LL / PM forwards it onto their state govt authority.

    Of course you have to keep track. SA does all theirs online and each had an ID number. I assume other states have similar.

    There are forms to transfer the ID numbers between ownership or PM changes if needbe.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Brown paper envelopes with a nondescript code is best. Write the code on the back page of your diary.

    But seriously - bond is deposited into the trust account then lodged electronically with rental bonds online.
     
  4. fullylucky

    fullylucky Well-Known Member

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    When you guys say lodged electronically that means the money actually come out of the trust account as in you transfer it to them via eFTPOS or Bpay?

    Do PMs or LLs ever forget and at the end of the month trust account doesn't balance? or this rarely happens? all PMs keep good track of it and "lodge it" asap habitually?
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    NSW :

    Rental Bond Board
    The Rental Bond Board is the independent custodian of rental bonds paid by tenants to landlords for residential tenancies. Landlords must lodge tenants' bond money with the Board. NSW Fair Trading's Rental Bonds branch administers the Board's day to day functions, providing rental bond lodgement, custody, refund and information services.

    The income earned from investing the bonds is used to fund the Board's operating costs, rental advisory services, and other programs and projects which benefit the residential tenancy sector. Strict guidelines, however, govern the use of the investment income from bonds and the bond money itself is quarantined, at all times.
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Trust accounts ALWAYS balance.
     
  7. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Except when the agent dips their hand in
     
  8. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Depends on each state. In Vic electronic bonds are direct debited from the agents trust account once the tenant accepts the lodgment.

    Some agents do forget - however the trust should still be balanced, because you've entered the bond received into your account into the trust system and receipted it.

    Good practice is to send lodgment as soon as the funds are received.
     
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