Improved bond process
The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 received Assent on 6 June 2024. Changes to the law will come into effect in stages.
Read more about changes to Queensland’s rental laws.
Evidence for bond claims
A bond paid by a renter gives the property owner financial protection in case the renter breaches the terms of the tenancy agreement, such as by damaging the property or not paying rent.
Under the current rental laws, rental property owners don’t have to provide information to the renter when making a claim against the bond when the tenancy ends.
The new laws will require rental property owners to give renters information to support their claim against the rental bond within 14 days after making the claim, unless they were unable to contact the renter after making reasonable efforts. This information may be receipts, quotes to repair damage or records of unpaid rent. Breaching this requirement will be an offence.
This reform will make the rental bond refund process fairer and more transparent. It will commence on a date to be fixed by Proclamation.
Bond refunds involving commercial bond products
Previously, if a renter took out a loan from a commercial or third-party provider to pay their bond, the Residential Tenancies Authority (RTA) could only issue bond refunds directly to the bond loan provider.
The new laws enable the RTA to refund the bond directly to renters, except if the bond loan is from the Department of Housing, Local Government, Planning and Public Works.
This reform ensures that renters receive their share of a rental bond refund and remain responsible for any unfulfilled obligations for a commercial bond product they have accessed. It came into effect on 6 June 2024.
Maximum bond amounts
Under current rental laws, rental property owners can charge a bond of more than 4 weeks rent if the weekly rent is more than $700 for residential tenancy agreements and $500 for rooming accommodation agreements.
The new laws will remove this rent threshold for residential tenancies and rooming accommodation and set the maximum bond amount that can be charged to the equivalent of 4 weeks rent.
This reform will give renters certainty about how much bond is required and limit excessive bond amounts to improve the affordability of upfront costs to rent a home.
If the bond isn’t enough to cover costs at the end of a tenancy, rental property owners can still use existing mechanisms to recover funds by applying for compensation to the Queensland Civil and Administrative Tribunal (QCAT).
This reform will commence on a date to be fixed by Proclamation.
Bond release if case dismissed without a QCAT order
Under current rental laws, the RTA can’t release bond refunds if QCAT has dismissed an application for an order to direct the RTA to refund the bond, without making an order.
The new reforms allow the RTA to refund a bond in accordance with the original bond claim if QCAT dismisses the application without making an order.
This reform ensures that rental property owners and renters can access bond refunds. It came into effect on 6 June 2024.
Bonds for rooming accommodation
Under current rental laws, the RTA can’t release bond refunds if QCAT has dismissed an application for an order to direct the RTA to refund the bond, without making an order.
The new reforms allow the RTA to refund a bond in accordance with the original bond claim if QCAT dismisses the application without making an order.
This reform ensures that rental property owners and renters can access bond refunds. It came into effect on 6 June 2024.
Portable bond scheme
Pressure in the rental market means many people are having to move around more often to find a home they can afford.
Renters can be asked to pay a bond to secure their next rental home before the bond they paid for their current one is refunded. This can make it difficult for renters to move to more suitable and affordable homes to meet their needs.
The new reforms allow work to commence to develop a portable bond scheme that enables renters to transfer their bond when moving from one rental property to another.
While the scheme is being established, the government will introduce the Bridging Bond Loan product to help households afford the upfront cost of a new bond, pending release of a previous bond at the end of their tenancy.
The portable bond scheme will be prescribed by Regulation.