The Minns Labor Government has unveiled that renters in Parramatta, the Central Coast and Penrith will be first to experience Smart Rental Bonds with a phased rollout across NSW starting in August.
Smart Rental Bonds will allow the 2.3 million renters across NSW to digitally transfer bonds between properties, eliminating the need to fork out thousands of dollars for another bond. This is expected to save renters up to $4,000 each time they move home.
The fast-growing communities in the Paramatta, the Central Coast and Penrith Local Government Areas have some of the state's highest rates of daily bond lodgement, with Smart Rental Bonds delivering crucial cost-of-living savings to renters in metropolitan and regional NSW.
Now is the best time for renters, landlords and agents in these areas to understand how the system will work, with new rules of operation recently made publicly available. To be eligible to participate in Smart Rental Bonds, renters must:
- Be at least 18 years old,
- Be moving between two rental properties in NSW within four weeks of the tenancy ending,
- Have no current claim against their bond at the time of transferring, with most renters expected to be eligible as a claim on a bond can typically only be made after the lease has ended,
- And ensure they pay back any future agreed claims on the bond.
With Smart Rental Bonds expected to be popular, a phased approach is the most responsible way to roll out the system. Renters moving into or within Parramatta, the Central Coast and Penrith Local Government Areas will be able to use Smart Rental Bonds in this initial phase of the rollout. It is expected that all renters in NSW will have access to the system by the end of this year.
This reform delivers on the Minns Labor Government's election commitment to introduce a portable rental bonds system, providing cost-of-living relief for renters while still protecting landlords through government-backed guarantees for claims against the bond.
This is all part of the Government's reforms to make renting fairer. The Government has:
- Banned no-grounds evictions.
- Limited rent increases to once a year.
- Ensured renters have fee-free ways to pay rent.
- Banned fees for background checks.
- Made it easier to have pets in rentals.
- Invested $6.6 million to build Smart Rental Bonds, an initiative due to be launched in mid-2026 that will help renters save thousands of dollars when moving home.
For more information on Smart Rental Bonds, please visit: https://www.nsw.gov.au/housing-and-construction/renting-a-place-to-live/residential-rental-bonds/smart-rental-bonds.
Deputy Premier of New South Wales and Minister for Western Sydney Prue Car said:
"This important reform will ease cost-of-living pressure and make renting fairer, simpler, and more flexible for the hundreds of thousands of renters across Western Sydney.
"Reforming the rental system is an important step as the Minns Labor Government rebuilds the NSW housing system, which was left in a mess by the Liberals and Nationals.
"Every dollar counts and ensuring that renters don't have to put money forward for a bond while waiting for the return of their current bond could save them thousands of dollars."
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"More than one year on from our landmark reforms that banned no-grounds evictions, it's clear that the Minns Labor Government is delivering on its promise to make renting fairer.
"This is the first time in our state's history that renters will have access to a simple, no-fuss way to transfer their bond when moving house.
"We're proud to deliver this crucial reform to flourishing communities like Parramatta, the Central Coast and Penrith - and soon, to every single renter in NSW.
"I encourage renters in these areas to learn how Smart Rental Bonds works so they can take advantage of this cost-of-living measure the next time they move.
"The Liberals promised this scheme in 2018 and never delivered it. All they gave renters is broken promises. Only a Labor Government can be trusted to create a fairer rental market for everyone."
Minister for the Central Coast and Member for Wyong David Harris said:
"We have heard renters in the Central Coast loud and clear: moving between properties is stressful, and coming up with a new bond every time is expensive.
"That's why the Minns Labor Government is rolling out Smart Rental Bonds in our growing community, saving renters the money they need to set up their new homes."
Member for Parramatta Donna Davis said:
" Smart Rental Bonds is about making renting fairer for the thousands of renters in Parramatta.
"We are so pleased to lead the Minns Labor Government's phased rollout of this game changing reform, delivering crucial cost-of-living help to those who need it most."
Member for Penrith Karen McKeown said:
" Smart Rental Bonds is the latest way the Minns Labor Government is delivering on its promise to make renting fairer - and Penrith is at the forefront.
"This is a major win for renters in our community that will put hard-earned money back in their pockets."
NSW Rental Commissioner Trina Jones:
"This is a significant moment for renting in NSW, and it's important that everyone involved understands how these changes will work in practice.
"In a tight rental market, tenants should feel empowered to move when the time is right, not held back by the cost of paying two bonds at once.
"Smart Rental Bonds strikes the right balance, making renting fairer for tenants while maintaining strong protections for landlords."
