NSW is pushing ahead with an Australia-first portable bond scheme that will allow millions of renters to digitally transfer their bond to their new home.
The state government on Monday said an upgrade of the existing rental bond system will soon get underway with the work expected to be completed in 2025.
“This scheme will be the first of its kind in the nation,” Minister for Better Regulation and Fair Trading Anoulack Chanthivong said.
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The Portable Rental Bonds Scheme will allow eligible tenants to digitally transfer their existing bond to their new rental home.
The Labor government says the scheme will give homeowners security, give renters better cashflow and reduce financial stress.
“Moving house is one of the most stressful things you can do, not to mention expensive for many renters,” Premier Chris Minns said in a statement.
“The process can leave renters out of pocket, for up to several weeks.
“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.”
In NSW, more than 330,000 tenancies are turned over each year.
The average tenancy is 1.6 years.
The NSW Rental Commissioner is leading the development of the scheme, which is currently out to public tender.
The announcement comes after Minns on Sunday revealed the government will pursue laws scrapping no-grounds evictions.
Under the plan, landlords who offer a “non-genuine reason” for punting a tenant under the laws could be fined.
Minns told the NSW Labor conference in Sydney on Sunday the government expected to introduce legislation in September, making good on a 2023 election promise.
Under the proposed reforms, landlords would need valid reasons to end tenancies for both periodic and fixed-term leases.
These would include existing rules for breach of lease, damage to a property or non-payment of rent.
The changes will bring NSW into line with other states, including the ACT, South Australia and Victoria.
About a third of NSW’s eight million-plus residents are renters.
Meanwhile, Committee for Sydney chief executive Eamon Waterford is scheduled to appear before a state parliamentary inquiry into no-grounds evictions on Monday along with more than 20 others representing tenant advocacy groups, women’s shelter organisations and social services groups.
Greens MP Jenny Leong is chairing the inquiry.