THE PRACTITIONER'S COMPANION
Tuesday 11 February 2025

Government urged to adopt nationwide portable bond scheme

Renters could save up to $2,600 in interest over 10 years to provide much-needed emergency savings if required. 

2 min read

RENTERS could save up to $2,600 in interest over 10 years to provide much-needed emergency savings if required. 

Renters should only have to pay bond once in their lifetime and could be earning thousands of dollars in interest.

A new proposal from the McKell Institute is urging the federal government to consider a National Portable Bond Scheme.

Under the recommendations, renters should be able to transfer their bond between leases rather than scrambling to come up with a second deposit before their previous one is refunded.

Institute chief executive Edward Cavanough said the policy would relieve significant cost of living pressure and stress from renters.

“Renters are under enormous financial strain and the current need to double-up on bonds to move often traps people in unsuitable housing,” Mr Cavanough said.

“A National Portable Bond Scheme would put real money back into the pockets of people who often desperately need it.

“We know the ‘Australian dream’ of property ownership is out of sight for many, yet our entire political class remains obsessed with the interests of homeowners.

“Renters are overlooked and treated as a minority or pitied for their inability to achieve homeownership.

“Renters need to be treated seriously with practical reforms that offer them real benefits today while laying the groundwork for long-term change.

“Right now, landlords and bond-holding authorities are the only people who benefit from the interest that accrues on rental bonds.

“That’s stupid and unfair. A National Portable Bond Scheme would ensure tenants are rewarded for their responsible tenancy and enjoy interest on the money they have paid. 

“If people get an opportunity to move and improve their work, study or living conditions they shouldn’t be held back by our outdated and unnecessary bond system.

“Labor needs to have a serious think about what they do for renters, as these voters could decide the party’s fate at the upcoming election.”

By earning interest on their bonds, The McKell Institute estimates renters could accumulate up to $2,600 in interest over 10 years, which could provide much-needed emergency savings if required. 

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