NSW Fair Trading has recently digitised the lodgement and refunds of residential rental bonds through the Rental Bonds Online scheme.
Minister for Innovation and Better Regulation Victor Dominello said the electronic transfer system is set to streamline the 540,000 applications for residential bonds processed by NSW Fair Trading each year.
According to Mr Dominello, Rental Bonds Online is the only scheme in Australia where tenant bond money is deposited directly to the government.
“The new scheme provides tenants with greater confidence that their bond money is securely held in trust, from the moment the payment leaves their account,” he said.
“Rental Bonds Online is expected to reduce red tape for tenants, private landlords and real estate agents by approximately $20 million per year.”
Since the pilot for the digital program began in July, more than 2,000 real estate agencies and private landlords have signed up for the new service, with more than 7,000 active accounts established and more than $5 million worth of bond money lodged.
Rental Bonds Online is mobile-friendly and voluntary for tenants; however, people can opt for paper-based lodgements if they wish.
The service also allows tenants to record and save their bond history online, which they can choose to use to support future tenancy applications.