Smart Rental Bonds

 

The NSW Government is rolling out Smart Rental Bonds, to support tenants when moving between properties. The Smart Rental Bond scheme will allow tenants to digitally transfer their rental bond from an old property to a new one for a $25.00 application fee.

This new system launched on 10^th August 2026, with phase one (1) available for renters moving into or within the Parramatta, Penrith and Central Coast local government areas. The statewide rollout is expected to reach all renters across NSW by the end of 2026.

Smart Rental Bonds is an optional cost-of-living relief measure being rolled out in NSW to make it easier for tenants when moving, helping them avoid paying a second bond upfront while waiting for a refund of a previous bond. This means tenants won’t need to set aside a large amount of money for a new bond before the bond for their current rental property is released, avoiding the “double bond” burden. All transfers will be managed securely through Rental Bonds Online.

Tenants will be able to transfer their existing bond themselves through the Rental Bonds Online platform. The transfer fee of ($25), is payable by the tenant, not the landlord or agent. If the new bond is higher, the tenant pays the difference; if lower, they receive a refund for the difference.

How tenants can access Smart Rental Bonds

To qualify for the scheme, tenants will need to:

• be moving between 2 rental homes in NSW
• have an existing rental bond linked to a Rental Bonds Online account
• be moving to a new rental property in NSW with the same tenants as the current rental property, if they are not living alone
• be vacating the current rental property within 4 weeks of entering the new rental property
• be over 18 years of age
• be a natural person (for example not a company or corporation)
• pay the Smart Rental Bonds fee of $25 and any additional money toward the new bond if required.

What happens if there is a claim on the original bond?

If a claim on the original bond, is submitted prior to the tenant’s application to transfer the bond, the tenant will be unable to transfer the bond until the claim has been resolved.

What happens if the remaining bond amount is less than the new bond?

If the remainder of the original bond is less than the new bond, Revenue NSW will issue the tenant an invoice for the difference. The tenant must pay the invoice within 28 days or Revenue NSW will commence recovery action. Once the tenant pays the invoice in full, the transfer process is complete.

What happens if the remaining bond amount is more than the new bond?

If the remainder of the original bond is more than the new bond, the difference will be refunded to the tenant, and the bond transfer process will be complete.

When Smart Rental Bonds cannot be used?

Smart Rental Bonds cannot be used if:

• there is a claim in progress on the bond the renter wants to transfer (read an example where the landlord makes a claim before the renter requests a transfer)
• members of a share house are moving to different houses
• a tenant has requested to transfer a bond but the transfer process has not been completed within 4 weeks of moving into the new home
• a tenant has a RentStart bond loan for all or part of the bond and there is money owing to Homes NSW
• a tenant owes money to NSW Government for a previous transfer
• the bond is a retail bond

How will Smart Rental Bonds impact landlords and tenants?

There is no change for landlords and agents. The processes landlords and agents currently use to lodge and claim bonds in Rental Bonds Online will not change. However, landlords and agents should continue to check if a tenant has an existing Rental Bonds Online account before submitting a pending lodgement.

The bond transfer functionality can only be seen by tenants. This means that no additional or new functionality will display in Rental Bonds Online for landlords and agents. Agents will continue to receive a Rental Bonds Online notification once a bond has been paid in full, allowing for the lodgement to be finalised in the current way. Any agreed claim on a bond will continue to be paid to the landlord or agency by NSW Fair Trading through the existing Rental Bonds Online process.

We encourage agents to understand how Smart Rental Bonds works so you can confidently support tenants and landlords while maintaining continuity and simplicity in the existing bond process. The college will continue to provide updates as more LGA’s are rolled out later in the year.

For further information regarding Smart Rental Bonds visit; Smart Rental Bonds – NSW Government

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