Transit Money

Transit money is trust money that is:

• received by a law practice

• subject to instructions

• to pay or deliver it to a third party (other than an associate of the practice).

Transit money need not be deposited into the practice's general trust account (unless received in cash).

Transit money typically takes the form of a physical payment instrument such as a cheque.

Where transit money is received, the practice must record and keep brief particulars sufficient to identify the relevant transaction and any purpose for which the money was received.

Where the only trust money received or held by a law practice during the trust accounting year is transit money, the practice's trust records in relation to the year are not required to be externally examined.

These rules can be found in s 210, s 222 & s 226A of the Legal Profession Act 2006 (ACT), and s 56(2) of the Legal Profession Regulation 2007 (ACT).

If you have any questions about this topic, please contact the Society's Trust Account Compliance Officer (trustaccounts@actlawsociety.asn.au).