ACT Greens push for portable rental bond scheme to ease tenant financial stress

The ACT Greens are calling for a portable bond scheme, like those in New South Wales and Victoria, to ease financial stress on renters — some of whom are being forced to double up on bond payments.

Under the current system, renters can be required to pay thousands of dollars for a bond in a new rental before their previous one is returned.

Instead of paying for a new bond separately, a portable bond scheme would allow tenants to transfer their previous bond to the new property, with any difference being paid by or refunded to the renter.

"We know how expensive it is to move, that you have to pay sometimes for a whole lot of costs, so this is just an additional one, particularly in a cost-of-living crisis," ACT Greens housing spokeswoman Rebecca Vassarotti told 666 ABC Canberra.

Canberra is considered to have the strongest tenancy rights of all Australian states and territories, from pets being allowed, to rent caps.

Renters can also borrow up to 100 per cent of a new bond cost from the ACT government under the government's bond loan scheme.

Despite the greater security for tenants, Canberra is the third most expensive capital city in which to rent.

A recent report from housing advocacy body Everybody's Home found Canberrans on an annual income of $70,000 needed to devote 55 per cent of their earnings to securing a rental.

Ms Vassarotti said for some, the cost of the extra bond payment was "prohibitive".

"In Canberra, over half of our community, around 250,000 people, earn $75,000 a year or less," she said.

Ms Vassarotti pledged to introduce a motion calling for the scheme before the end of the year, unless the government committed to the idea sooner.

"We're seeing more and more people having to rent long-term just because of the cost of housing.

"It's really incumbent on our government to do this small thing that will make a significant difference for people who are renting in the ACT."

ACT Attorney-General Tara Cheyne previously told the Legislative Assembly that the government was "monitoring developments in other jurisdictions, including recently launched schemes in Victoria and New South Wales".

Ms Cheyne said bonds could currently be transferred between rentals when the property was managed by the same lessor or agency as the previous home.

In a response to the ABC, the ACT government said it would "engage with Victoria and other jurisdictions to better understand their experiences and implementation approaches".

Victoria and some parts of New South Wales introduced a rental bond scheme this year, which is optional to use and comes with a $25 administration fee.

The move has largely been welcomed, but the NSW Tenants' Union called for the administration fee to be scrapped, saying it was a disproportionate burden on lower-income earners.

The NSW Tenants' Union's Leo Patterson said renters already funded the system through interest on their bonds.

Under the NSW scheme, renters use an online portal to transfer their bond.

Where there is a gap between the old and new bond, renters either top it up or are refunded, as long as there is no claim made against the bond.

If the landlord does make a successful claim, the government, which holds the money, pays them directly, with the renter to pay the government back within 28 days.