Millions of renters in the state will soon benefit from the Minns Labor government’s $6.6 million investment in the nation’s first Portable Rental Bonds Scheme.
The initiative aims to ease the financial burden on renters by allowing them to transfer their bond when moving homes.
With more than 330,000 tenancies turning over annually and average tenancies lasting 1.6 years, renters face high costs, including an average moving expense of $4,000.
The Portable Rental Bonds Scheme will enable eligible tenants to digitally transfer their existing bond to a new rental home, reducing financial stress.
The scheme ensures that the integrity of the bond system is maintained, providing security for homeowners while improving cash flow for renters.
The rental commissioner is spearheading the development, which is currently out to public tender and expected to be completed by 2025.
“Moving house is one of the most stressful things you can do, not to mention expensive for many renters,” said NSW Premier Chris Minns.
“The NSW government’s portable bonds scheme will give cost-of-living relief to renters moving homes, by making sure they don’t have to set aside extra money while they wait for their bond to be refunded.”
Anoulack Chanthivong, minister for better regulation and fair trading, stressed the scheme’s uniqueness.
“This scheme will be the first of its kind in the nation,” Chanthivong said. “Once in place, renters won’t have to think twice about how they’ll pay their bond on top of moving costs.
“The NSW government is committed to working towards a fairer rental marketplace.”
Rose Jackson, minister for housing and homelessness, minister for youth highlighted the scheme’s importance amid the housing crisis.
“The harsh reality is that the high cost of moving, especially having to pay a new bond before the old one is refunded, can push people to the brink of homelessness,” Jackson said. “The portable bonds scheme is an important and practical way to help ease this pressure renters feel.”
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