The NSW State Government has intentions to fulfil their election promises, aimed at combating housing and cost of living stress, with the introduction of a new rental bond system.

Renters in NSW can expect to see ‘portable bonds’ by next year. But what does that mean?

Portable bonds will be developed and delivered through an upgraded rental bond system to ‘improve cash flow’ and reduce ‘financial stress for renters’. 

The financial relief measure is a nation’s first. The government will invest $6.6 million to produce a system that streamlines the transfer of bond money, through a digital transaction to a renters new tenancy and avoid paying a new bond on top of awaiting funds from a previous tenancy. 

“Moving house is one of the most stressful things you can do, not to mention expensive for many renters,” Premier Chris Minns emphasised.

NSW has a turnover of more than 330,000 tenancies every year across the state, with the average tenancy of 1.6 years. 

According to Fair Trading NSW, Kiama had just over 1,100 bonds in lodgement as of January 2024. The median rent in the Kiama region is $700 per week, with most rental properties across NSW expecting four weeks of rent in advance to cover the bond. 

“The process can leave renters out of pocket, for up to several weeks,” Minns continued.

The management of the scheme sits with the NSW Rental Commissioner, Trina Jones, and is out for public tender now. The upgrade to the existing rental bonds system is expected to be completed in 2025. 

The announcement comes after the NSW Government called for an end to ‘no ground evictions’ to ease the cost of living and housing stress across the state.

“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,” Minns said. 

Have you experienced housing stress in Kiama or have a renting story to share? Email us [email protected] to tell your story.