R
enters in New South Wales will be able to transfer their existing rental bond to a new property under a new government scheme designed to reduce the upfront cost of moving home.
The Smart Rental Bonds scheme allows eligible renters to move their bond from one tenancy to the next instead of paying a second bond before the first one is returned. The government says renters could avoid paying up to $4,000 upfront when they move.
The scheme has begun a phased rollout in the Parramatta, Penrith and Central Coast local government areas, with a statewide expansion expected by the end of the year.
Around 330,000 households move each year in NSW, and most rental tenancies last less than two years. Many renters have faced the challenge of finding several thousand dollars for a new bond while waiting for their previous bond to be refunded, with some relying on savings, loans or financial help from family and friends.
Under the new system, renters whose landlord or agent lodges a bond request online can choose to transfer their existing bond through Rental Bonds Online and pay a $25 transfer fee. If the new bond is higher, the renter pays the difference. If it is lower, the balance is refunded, provided there is no agreed claim against the bond.
Where a landlord makes a finalised claim on a transferred bond from the original tenancy, the NSW Government will pay the landlord upfront and then recover the amount from the renter. The government says this arrangement is intended to ensure landlords do not face additional financial risk.
Premier Chris Minns said the scheme was aimed at reducing one of the biggest financial barriers renters face when changing homes.
He said many renters had been required to find another $3,000 or $4,000 before receiving the return of their previous bond, creating pressure for households already managing rising living costs.
Deputy Premier Prue Car said the reform would provide relief for renters, particularly in Western Sydney, while maintaining protections for landlords.
The government says the scheme does not change the existing bond process for landlords and agents, and the dispute process through the NSW Civil and Administrative Tribunal will remain the same.
The reform forms part of a broader package of rental changes introduced by the Minns Government, including the end of no grounds evictions, annual limits on rent increases, fee free rent payment options, restrictions on background check fees, and changes that make it easier for renters to keep pets.
Housing and rental advocates have long argued that the overlap between paying a new bond and waiting for the previous one to be refunded can make moving difficult, particularly for lower income households. Landlord groups have generally supported measures that maintain bond security and ensure claims can still be recovered.
The rollout in Parramatta, Penrith and the Central Coast will act as the first stage of the program before it becomes available across NSW later this year.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
