NSW is set to become the first Australian state to introduce a Portable Bond Scheme – a plan that will shortly be followed by Victoria, and may even be implemented federally.

The scheme means that renters in NSW will be able to transfer their existing bond to their new home – removing wait times for its return, and minimising the risk that tenants will have to be out of pocket for two bonds at any given time. In NSW the average tenancy is 1.6 years, and with an average of over 330,000 turnovers of tenancy per year, the idea behind the introduction of the scheme is to alleviate financial pressure on renters and makes up part of the state government’s focus on cost of living. The CEO of the NSW Tenants Union, Leo Patterson Ross, welcomed the change when it was first proposed in 2022, noting that when times are tough, tenants can be forced to take out high-interest rental bond loans to cover their new bond while waiting for the old one to be returned. Ross went on to note that as over 30% of NSW residents were renters, this change could make a world of difference for a huge number of people.  

Premier Chris Minns stated that the ‘portable bonds scheme will give cost of living relief to renters moving homes, by making sure they don’t have to set aside extra money while they wait for their bond to be refunded.’ The Minister for Housing and Homelessness Rose Jackson said it was a vital step towards easing pressure on renters in a practical way.

The proposed scheme will utilise the government’s existing Rental Bonds Online system but does require the tenants to be the same on both the original and new rental agreement. Opponents to the scheme consider the $6.6m in funds it took to set up a waste, while supporters argue that beyond the financial relief it provides to renters, it also creates a more efficient administrative process for property managers.

Similarly, Victoria is looking to implement a similar scheme, while also raising the standard of cases being brought in front of the Victorian Civil and Administrative Tribunal (VCAT.) The intention is to ease financial pressure, while also easing administrative pressure on both agents and the tribunal, as well as tenants themselves, by making unrealistic claims to try and hold onto paid bonds when a tenant vacates a property. ‘We’re giving renters one less thing to worry about, and keeping money in their pocket,’ Victorian Premier Jacinta Allen said, ‘most renters don’t just have a spare few thousand dollars lying around to cover the unnecessary cost of the dreaded double bond.’

Bringing in a federal version of the Portable Bond Scheme is also not out of the question, with a spokesperson for the Albanese government telling NewsWire that the government is working closely with state governments to see what was in the best interest of the populace. ‘Through National Cabinet, the Commonwealth is coordinating the states and territories to harmonise and strengthen renters’ rights across Australia,’ they told NewsWire. Whether this will be implemented on a full national scale is as of yet unclear – and it looks as though the Albanese Government is waiting to see how it goes through implementation in NSW and Victoria first.

NSW’s Portable Bond Scheme will come into effect before the end of 2025, while Victoria’s will be implemented in early 2026.

To learn more about the scheme, click here if you’re in NSW, and here if you’re in Victoria.