Bit of a Scam if you ask me

[miket]

HIGHLIGHTS OF RTA'S OPERATIONAL ACTIVITY - DECEMBER 2003
* As at the end of December 2003 the RTA was holding 317,468 bonds lodged under the RTA94 with a value of $238.7M. As expected, bonds declined both in number and value during December as refunds exceeded new lodgements. Over the last 12 months the number of bonds held increased by 12,635 or 4.1% while the value of bonds held grew by $24.6M or 11.5% for the year.
* At the end of December the RTA was also holding 621 bonds worth $278,500 lodged under the RSA2002.

Along with the RTAQ the bond authority would make a killing in interest from all the bond money they hold per annum.

What sort of interest would each state earn just on bond held and at what interest rate? Where does the interest go? Some towards the tribunal running costs and the rest?

Ta,
MikeT

 

[asy]

What sort of interest would each state earn just on bond held and at what interest rate? Where does the interest go? Some towards the tribunal running costs and the rest?

Hiya Mike,

The interest goes into the Estate Agent's Guarantee Fund.

Along with the interest earned on Estate Agent's Trust funds.

When we keep a trust account, we earn no interest, it all goes to the EAGF, but we have to pay all the fees on the account... (I'd like it if all the interest AFTER fees went to EAGF.. but nevermind)

What is the EAGF, I hear you ask?

It's a fund, administered by the respective Offices of Fair Trading which is used *If* Real estate agent trust accounts are ever tampered with. This fund guarantees Your money should you pay a deposit to a Real Estate Agent who then (or who's staff then) goes bad.

In a perfect world it wouldn't be necessary, but at least it offers protection in the unlikely event.

If you consider that some deposits are tens (even hundreds) of thousands of dollars (yeah, I know, we IP ppl don't pay big deposits, but some ppl do), this interest is a small price to pay for a quasi insurance policy.

hope this helps,

asy

 

[Lplate]

RTA Queensland

Miket

The RTA Qld meets its operating expenses from investing bond moneys.
Its coverage has increased over the years so there should be growth in the number of bonds held and in the total value of those bonds.

The RTA is not a small organisation, according to its 2003 Annual Report the RTA Queensland had 118 full-time staff. The report also stated:

"Generally the income
stream has been inadequate to cover the
expenses required to fund the RTA
services and functions leading to a
reduction in retained surplus. The level
of retained surplus has now reduced to
$19.119M at 30 June 2003."

I thought that was a bit odd in that it should be possible to provide services within budget, or at least that was the expectation when it was established.
After all, it is not supplying services that could cause a plane to fall out of the sky.
Maybe the forum accountants might examine the financial statements to see where expenditure has increased over time. Annual Report 2003
What businesses would be comparable for comparison of running costs?
Lplate