Rental Bond Laws and Regulations in Victoria and New South Wales: Complete Guide

Alfred

— 3 min read

A BondPay Insight Resource

Understanding rental bond laws in your state is essential for both tenants and landlords. While the concept of a bond is the same across Australia—security money held during a tenancy—the rules differ by jurisdiction.

This guide focuses on Victoria and New South Wales, outlining how much bond can be charged, how it must be lodged, and what rights and obligations apply under each state’s legislation.

What Is a Rental Bond?

A rental bond is a security deposit paid by a tenant at the start of a tenancy. It protects the landlord if:

  • Rent goes unpaid
  • The property is damaged beyond fair wear and tear
  • The tenant breaks the lease early
  • Cleaning or rubbish removal is needed

The bond is not kept by the landlord directly—it must be lodged with the relevant state bond authority and held in trust until the tenancy ends.

Rental Bond Laws in Victoria

Rental bonds in Victoria are regulated by the Residential Tenancies Act 1997 (VIC) and administered by the Residential Tenancies Bond Authority (RTBA).

Bond Limits in Victoria

  • Standard limit: 4 weeks’ rent if the weekly rent is less than $900.
  • If the rent is $900 or more per week, there is no maximum limit set by law.
  • Additional bonds can only be requested in limited circumstances (e.g., if the lease is renewed after a significant rent increase).

Lodgement Rules

  • Landlords/agents must lodge the bond with the RTBA within 10 business days of receiving it.
  • Tenants must be given a completed bond lodgement form to sign before the bond is submitted.
  • Tenants receive confirmation from the RTBA, which is proof the bond is held in trust.

Bond Refunds in Victoria

  • At the end of the tenancy, the landlord/agent and tenant should agree on the refund amount.
  • If both parties agree, the RTBA refunds the bond—usually within a few business days.
  • Disputes can be referred to the Victorian Civil and Administrative Tribunal (VCAT).

Rental Bond Laws in New South Wales

Rental bonds in NSW are governed by the Residential Tenancies Act 2010 (NSW) and managed by NSW Fair Trading.

Bond Limits in NSW

  • Standard limit: 4 weeks’ rent for most residential tenancies.
  • This limit applies regardless of the rent amount (unlike in Victoria).

Lodgement Rules

  • Landlords/agents must lodge the bond with NSW Fair Trading within 10 working days of receiving it.
  • Tenants must receive a bond lodgement number and confirmation directly from NSW Fair Trading.
  • Bonds are lodged via the Rental Bonds Online system or through paper forms.

Bond Refunds in NSW

  • Refunds can be initiated by either the tenant or the landlord/agent via Rental Bonds Online.
  • If there is a dispute, NSW Fair Trading can hold the bond until the matter is resolved in the NSW Civil and Administrative Tribunal (NCAT).

Similarities Between VIC and NSW Rental Bond Laws

Both states require that:

  • Bonds are lodged with the correct bond authority (RTBA in VIC, NSW Fair Trading in NSW).
  • Tenants must receive official confirmation from the authority.
  • Bonds are returned in full unless lawful deductions are agreed or ordered.
  • Disputes are resolved through the relevant state tribunal.

Paying Rental Bonds in Instalments in VIC and NSW

While the laws don’t require landlords to accept instalment payments, renters in both Victoria and NSW can use third-party services like BondPay to cover the bond upfront and repay it over time.

  • The bond is still lodged in full with the state authority, meeting legal requirements.
  • Tenants benefit from reduced upfront moving costs.
  • Instalment arrangements are private agreements between the tenant and the provider, separate from the lease.

Key Takeaways

  • Victoria: 4-week limit for rents under $900/week; bonds lodged with RTBA within 10 business days.
  • NSW: 4-week limit for most properties regardless of rent; bonds lodged with NSW Fair Trading within 10 working days.
  • In both states, tenants are entitled to bond confirmation and prompt refunds if no claims are made.
  • Instalment payment options can help tenants meet legal requirements without financial strain.

By offering clear, state-specific guidance and tools like interest-free instalment plans, BondPay makes it easier for renters to meet their bond obligations in both Victoria and NSW—while staying fully compliant with local regulations.

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