Testing has begun on a new digital bond transfer system in New South Wales, allowing renters to move their bond between properties without paying a second upfront amount.
The Smart Rental Bonds system, due to launch in mid-2026, will let tenants transfer an existing bond for a $25 fee through the Rental Bonds Online platform. The reform is aimed at reducing upfront costs for renters who would otherwise need to pay a new bond while waiting for their previous one to be returned.
More than 2.3 million renters in NSW are expected to benefit once the system is operational. Around 330,000 households move each year, with most tenancies lasting less than two years. The government says this has led to repeated financial pressure, with renters often needing to save for months or take out loans when moving unexpectedly.
Premier Chris Minns said the change was designed to ease financial strain on renters.
“This reform is about easing cost-of-living pressure and making renting fairer, simpler and more flexible for more than 2.3 million renters in our state.
“Every cent counts and making sure that renters don’t have to put money forward for a bond while waiting for a refund will save them thousands of dollars each time they move.”
Under the system, tenants will be notified when a landlord or agent lodges a bond request. Renters can then choose to pay a new bond upfront or transfer their existing bond digitally. If the new bond is higher, they will pay the difference. If it is lower, the remaining amount will be returned, provided there are no agreed claims.
Housing Minister Rose Jackson said the policy responds to consistent feedback from renters.
“When we came into Government, the message we heard from renters was clear – having to fork out for two bonds at once when moving properties is a major expense that many just cannot afford.
“It’s creating stress, real hardship and even homelessness for some people struggling in our rental market. This landmark reform is a practical way to save millions of people thousands of dollars.
“With more people renting in NSW – many of them for extended periods, involving multiple moves – there has never been a more important time to provide this crucial cost of living relief.”
If a landlord makes a claim on a bond and the renter agrees, the NSW Government will pay the landlord upfront. The tenant will then repay the government, with authorities saying this ensures landlords face no financial risk.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the initiative builds on earlier rental reforms.
“Over the last three years, the Minns Labor Government has delivered significant financial help for renters – from limiting rent increases to once a year, to mandating fee-free ways to pay rent.
“Smart Rental Bonds is the latest way the Minns Labor Government is delivering on its promise to make renting fairer and give renters cost-of-living relief.
“No one likes having to put forward thousands of dollars while waiting days, possibly weeks for their old bond to come back – that’s money which renters need to set up their new home.
“Smart Rental Bonds is not only a win for renters, but a solution which won’t disrupt how landlords and real estate agents conduct their business either.”
NSW Rental Commissioner Trina Jones said the system would reduce financial pressure associated with moving.
“The NSW Government is aware of the challenges renters face when moving home.
“Technology like the Smart Rental Bond system is just one way we are empowering renters by alleviating financial pressure and creating a fairer and more flexible rental experience for tenants in NSW.
“Allowing the bond to be a portable asset which can move between properties digitally will alleviate the financial strain which comes with moving such as having to hire a van or organise connecting utilities.
“Nothing will change for landlords in the process either, because the NSW Government will pay out the agreed claim to the bond once a tenant moves out.”
The system will operate through the existing Rental Bonds Online platform, with full rollout expected next year as testing continues.
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