NSW launches Smart Rental Bonds, letting renters transfer deposits for a fee

From today, renters moving within Parramatta, Penrith and the Central Coast can transfer their existing rental bond to a new property through the Smart Rental Bonds scheme, which charges a $25 application fee. The online service, managed by NSW Fair Trading, requires users to select the bond to move, designate the destination, and pay any shortfall if the new bond exceeds the old amount; refunds are issued when the new bond is lower and no claim exists.

Landlords retain the ability to make claims for unpaid rent or damage, with the government disbursing funds only after tenant consent or a NSW Civil and Administrative Tribunal order. Shelter NSW CEO John Engeler highlighted the financial strain of double bonds for low-income tenants, while Fair Trading Minister Anoulack Chanthivong noted the phased rollout to ensure reliability. Although the scheme was originally slated for late 2025, it was postponed to mid-2026 to allow smoother implementation, with plans to cover all NSW renters by year-end. The Tenants' Union of NSW welcomed the initiative but criticized the $25 fee as burdensome for vulnerable renters.