New rental bond scheme starts today in NSW, but only in select suburbs

Renters in selected New South Wales suburbs can now transfer their existing rental bonds to new properties, a move designed to alleviate significant financial pressure. The government's Smart Rental Bonds scheme, launched today, aims to prevent renters from needing to pay a new bond before their old one is returned.

Currently, the scheme is limited to the Parramatta, Penrith, and Central Coast local government areas. This rollout is a year behind schedule, and while not free, the government anticipates strong uptake. Shelter NSW CEO John Engeler described the scheme as a "game changer" for low-income renters, noting that the stress of securing a new bond can be a major obstacle to moving, sometimes forcing tenants to borrow money or forgo essentials.

To use the online service, overseen by NSW Fair Trading, renters will pay a $25 application fee. They nominate the bond to transfer and its destination. If the new bond is more expensive, the renter pays the difference; if it's cheaper, they receive a refund, provided no claims are made against the existing bond.

The process for landlords making claims against a bond for unpaid rent or damages remains the same. If a tenant agrees to a claim, the government pays the landlord, and the tenant repays the government within 28 days. Disputed claims will be handled by the NSW Civil and Administrative Tribunal (NCAT).

Fair Trading Minister Anoulack Chanthivong stated that the gradual scaling up of the scheme is necessary, given the vast number of bonds and renters' money involved. He emphasized that a phased approach ensures the system's stability as it expands.

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It might seem like it's not a big deal, but for people on low and very low incomes, this is a game changer.