Renters' first look at the Minns Labor Government's Smart Rental Bonds system is here, as testing kicks off ahead of its launch in mid-2026.
Smart Rental Bonds will allow tenants to digitally transfer their bond between properties for a small fee of $25. This means they will no longer have to find thousands of dollars for a "second" bond while waiting for the previous bond to be refunded.
Smart Rental Bonds will deliver on the Minns Labor Government's election commitment to introduce a portable rental bonds system to provide cost-of-living relief for renters and make renting fairer.
With the IT build done and extensive system testing beginning, the more than 2.3 million renters in NSW are a step closer to accessing this critical cost-of-living measure.
Around 330,000 households move each year, with most rental tenancies lasting less than two years, meaning thousands of renters face repeated upfront costs when changing homes. This requires people to save for several months before they can leave a property or potentially have to take out hefty loans if they have to move out of the property unexpectedly due to the property being sold or the homeowner moving in.
Accessible through the existing Rental Bonds Online platform, this new system maintains the integrity of the bond system by ensuring that landlords have security, while improving cashflow for renters.
With the average renter spending $4,000 each time they move, Smart Rental Bonds has been designed as a simple, easy-to-use solution for renters to alleviate financial stress:
- Renters will be notified once a landlord or agent lodges a bond request online.
- The renter logs onto Rental Bonds Online and chooses to either pay their new bond upfront, or use Smart Rental Bonds to move their existing bond to the new property.
- If the new bond is higher than the old one, the renter will need to pay the difference - but if the bond is cheaper, they will get the difference back provided no agreed claim on the bond.
- If a landlord makes a claim on a bond and the renter agrees, the NSW Government will pay the landlord upfront. The renter will then repay the Government, meaning landlords face no financial risk.
The Minns Labor Government is committed to improving the lives of renters, delivering substantial reforms such as ending no-grounds evictions, limiting rent increases to once a year, making it easier to have pets in rentals and introducing an $8.4 million NSW Rental Taskforce to hold landlords and real estate agents to account.
For more information on renting in NSW visit: https://www.nsw.gov.au/housing-and-construction/renting-a-place-to-live
Premier of New South Wales Chris Minns said:
"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."
Minister for Housing Rose Jackson said:
"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."
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"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 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."
