Renters in New South Wales can now avoid one of the biggest upfront costs associated with moving home, with the Minns Labor Government officially launching Smart Rental Bonds, a new scheme allowing eligible tenants to transfer their existing rental bond directly to their next property.
The new system is designed to remove the need for renters to pay a second bond while waiting for their previous bond to be returned. The NSW Government says the initiative could save renters up to $4,000 each time they move, depending on the value of their rental bond.
Around 330,000 households move each year across NSW, while most rental agreements last less than two years. This means many renters can face repeated financial pressure when changing properties, particularly when they need to move quickly because a property has been sold or an owner is returning to live in it.
Under the previous system, renters could be required to find thousands of dollars for a new bond before receiving their previous bond back. Some households have had to spend months saving for the additional payment, while others have relied on loans, family or friends to cover the gap.
The first stage of Smart Rental Bonds is now available to renters moving into or within the Parramatta, Central Coast and Penrith Local Government Areas. The NSW Government plans to progressively expand the scheme across the state, with all NSW renters expected to have access by the end of 2026.
The process is designed to be completed digitally through Rental Bonds Online. Once a landlord or property agent lodges a new bond request, the renter will receive notification and can choose whether to pay the new bond upfront or transfer their existing bond using Smart Rental Bonds.
Renters who choose the new system will pay a $25 fee for the transfer. If the bond on the new property is higher than the previous bond, the renter will need to pay the difference. If the new bond is lower, the renter can receive the difference back, provided there is no agreed claim against the original bond.
The scheme also includes protections for landlords. If a landlord at the previous property has a finalised claim against the renter’s bond, the NSW Government will pay the landlord upfront under the government-backed arrangement. The renter will then repay the Government, meaning landlords do not carry additional financial risk because a bond has been transferred.
The Government says there will be no major changes to the existing bond process for landlords and agents. Agents will continue to notify renters about new bond requirements through Rental Bonds Online, while the existing process for agreed claims will remain in place. Disputes will also continue to be handled through the NSW Civil and Administrative Tribunal.
The government-backed guarantee also protects landlords when a bond has been transferred. According to the NSW Government, agreed claims from the original tenancy will continue to be covered up to the amount of the transferred bond, including situations where a renter leaves a property damaged.
NSW Premier Chris Minns said the reform would remove a significant financial barrier for the state’s growing rental population. With more than two million people in NSW renting their homes, he said the requirement to find another $3,000 or $4,000 before receiving an existing bond could place considerable pressure on families.
Deputy Premier and Minister for Western Sydney Prue Car said Smart Rental Bonds would help reduce financial pressure on renters across Western Sydney, while Minister for Better Regulation and Fair Trading Anoulack Chanthivong described the initial rollout as an important step towards a statewide portable rental bond system.
The launch also marks the delivery of a Minns Labor Government election commitment to introduce portable rental bonds as part of broader reforms aimed at making renting fairer. Other measures highlighted by the Government include banning no-grounds evictions, limiting rent increases to once a year, providing fee-free ways for renters to pay rent, banning background-check fees and making it easier for renters to have pets.
Member for Parramatta Donna Davis said the first rollout would provide renters in the community with a more transparent approach to managing rental bonds, while Member for Penrith Karen McKeown encouraged local renters to understand how the new system works so they can make use of the scheme.
NSW Rental Commissioner Trina Jones said moving home can already be an expensive and stressful experience, and Smart Rental Bonds is intended to reduce that pressure by removing the need to find money for a second bond while waiting for the first one to be returned.
For renters in Parramatta, Penrith and the Central Coast, the scheme is now available as the first stage of the statewide rollout. The NSW Government expects the program to expand to renters across the state by the end of the year, potentially helping hundreds of thousands of households avoid the financial strain of paying two rental bonds at the same time.
