NSW rolls out Smart Rental Bonds statewide

Last month, the first phase was rolled out across Penrith, Parramatta and the Central Coast, resulting in almost $1 million worth of bond transfers being made.

The state government said the initiative eliminated the need to come up with thousands of dollars upfront, saving renters up to $4,000 each time they moved home.

Renters are notified once a landlord or agent lodges a bond request online, and can choose to either pay upfront or pay a fee of $25 to move their existing bond to the new property,

If a renter’s new bond is higher than the previous one, they will need to pay the difference, but if the bond is cheaper, they will receive the difference back.

If the first landlord makes a finalised claim on a bond, they will be paid by the government upfront, and the renter will compensate the government, ensuring no risk to the landlord.

According to the state government, the scheme will provide important cost-of-living relief for tenants and help to make renting fairer.

NSW Premier Chris Minns said moving home was expensive enough without having to find thousands of dollars for a second bond.

“For a family or household already juggling the rent, groceries, power bills and everything else, that’s a lot of money to find at once,” he said.

“More than two million people rent in NSW. This is a practical change that makes moving home easier and takes one big financial pressure off their shoulders.”

Housing Minister Rose Jackson said the cost of paying a new bond before the old one was refunded can create significant financial pressure for renters.

“We know there’s more work to do, but allowing renters to save thousands of dollars by transferring their bonds between properties is a key part of our plan to make renting fairer,” Jackson said.