NSW renters can transfer bonds between properties for $25 under new scheme

The NSW Government has announced a new Smart Rental Bonds scheme that will let renters transfer their bond from one property to the next for a flat $25 fee. The scheme covers 2.3 million renters across the state and is currently in testing ahead of a mid-2026 launch.

Premier Chris Minns framed the move as a direct cost-of-living measure.

"This reform is about easing cost-of-living pressure and making renting fairer," Premier Chris Minns said.

Right now, if you're renting a two-bedroom unit in Parramatta for $600 a week and you want to move to a place in Penrith, you're looking at finding another $2,400 for the new bond before you've even got your old one back. For a lot of people, that money just isn't sitting around. The average cost of moving in NSW already runs to about $4,000 per relocation, and doubling up on bonds pushes that figure even higher.

Under Smart Rental Bonds, tenants moving between properties can transfer their existing bond to the new tenancy through Rental Bonds Online. The $25 fee is the only upfront cost. If the new bond is higher than the old one, the renter pays the difference. If it's lower, the renter gets the difference back.

How the scheme works

Around 330,000 households move each year in NSW. Most rental tenancies last less than two years. That's a lot of people forking out for new bonds on a pretty regular cycle.

The Smart Rental Bonds system runs through the existing Rental Bonds Online platform. When a landlord lodges a bond request, the renter gets a notification. From there, they can choose to pay the bond upfront in the usual way or transfer their existing bond from a previous tenancy.

There's another piece to it. When a tenancy ends and there are agreed claims on the bond, the Government pays those claims upfront. The renter then repays the Government. That means the bond transfer isn't held up waiting for disputes or inspections at the old property to wrap up.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong talked up the broader agenda. "Smart Rental Bonds is the latest way the Minns Labor Government is delivering on its promise," Chanthivong said.

NSW Rental Commissioner Trina Jones pointed to the digital side of the reform. "Technology like the Smart Rental Bond system is just one way we are empowering renters," Jones said.

The $25 fee is already copping criticism

Minister Rose Jackson, who holds the Housing portfolio, acknowledged the pressure renters have been under. "When we came into Government, the message we heard from renters was clear," Jackson said.

The Tenants' Union of NSW has already called on the Government to scrap the $25 fee. The Union's argument is straightforward: the fee falls hardest on the renters the scheme is supposed to help. If you're struggling to find a few thousand for a second bond, $25 might not sound like much to a politician, but it's another cost on top of removalists, connection fees and the rest of it.

On a per-household basis across the 330,000 that move each year, the $25 fee would generate around $8.25 million annually if every mover used the scheme. Whether that's paying for admin costs or just padding the budget is a question the Government hasn't answered yet.

For a renter in Blacktown paying $550 a week, a standard four-week bond is $2,200. That's $2,200 you need to find on top of advance rent and moving costs. Smart Rental Bonds would cut that to $25 at the point of moving, assuming your old bond is the same size or bigger.

In Liverpool or Campbelltown, where median rents for a three-bedroom house sit north of $500 a week, the same arithmetic applies. Four weeks of bond is $2,000-plus. The transfer option frees up that cash at a point when renters are already bleeding money on the move.

What renters need to know before mid-2026

The scheme is in testing now. The mid-2026 launch date means renters moving in the next few months will still need to stump up for bonds the old-fashioned way. Once the system goes live, it'll run through Rental Bonds Online, which most NSW renters and agents already use.

A few things to keep in mind. The notification system means renters will know as soon as a landlord lodges a bond request. That's a change from the current setup where tenants sometimes find out about bond lodgements after the fact. The choice between paying upfront or transferring sits with the renter, not the landlord or the agent.

The repayment arrangement, where the Government covers agreed claims and the renter pays back later, adds a layer of complexity. The details on repayment terms, interest, and what happens if a renter can't pay haven't been spelled out publicly.

For the 2.3 million renters in NSW, Smart Rental Bonds is the first scheme of its kind in the state. The $25 fee debate will run right up until launch.