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a simple solution.

Read paragraphs 129 and 130 of TR2002/14 http://law.ato.gov.au/atolaw/view.htm?locid=%27TXR/TR200214/NAT/ATO%27&PiT=99991231235958 This TR concerns a retirement village operator receiving lump sum payments for rent upfront. Here is a link to the case mention in the above quote, Case B47, 70...

Looking at the NSW legislation for these agency trust accounts, s 86 PROPERTY, STOCK AND BUSINESS AGENTS ACT 2002 http://www.austlii.edu.au/au/legis/nsw/consol_act/psabaa2002385/s86.html If the tenant pays money into the trust account for the landlord to hold for the landlord then there...

Excellent Devoni!

Thanks Rob, but that ss covers money held on your behalf. I guess the agent is the landlord for these purposes - but it is held on trust so I would still think it depends on the terms of the trust. Is the tenant handing over money to be held on trust for themselves to be applied and paid each...

If the landlord can demand payment from the trust account then it would be a bare trust for the landlord.

With the beneficiary being the landlord? Thanks Rob.

The agent is the landlords agent in the legal sense, so when they receive payment the landlord would receive payment. But if it is held in trust then it would belong to the tenant until it was released. Similar to a deposit on sale.

Perhaps it will stay in the real estate agent's trust account and you can receive it when it falls due and payable.