Landlords in Victoria, Australia, face significant fines if they prevent renters from lodging their own bond payments. A new law, effective immediately, allows tenants to bypass landlords or property managers and lodge bonds directly with the Residential Tenancies Bond Authority (RTBA). Landlords who resist this change risk fines of up to $26,000.
This reform is part of a broader effort to update tenancy regulations in Victoria, which has seen over 150 changes in recent years. The new offense is specifically titled: "Offence to refuse to enter into agreement with renter who elects to pay bond directly to Authority." Individuals face fines exceeding $5,000 (25 penalty units), while companies could be fined over $26,000 (125 penalty units). In the current financial year, one penalty unit in Victoria is valued at $209.10.
The change comes as the Portable Rental Bond Scheme, launched in July, gains traction. This scheme allows tenants to transfer their existing bond to a new rental property, avoiding the need to fund two bonds simultaneously. To date, over 1,871 bonds, totaling $5.3 million, have been added to the scheme. Minister for Renters, Tim Richardson, stated that 3,164 renters have already utilized the scheme, giving them greater control over their bond money.
"Your bond is your money – now you can lodge it yourself, instead of handing it to an agent," Mr. Richardson said.
Tenants Victoria chief executive Jennifer Beveridge highlighted the security this provides, ensuring bonds are "kept safe and secure from the moment they pay it." She added that direct payment to the RTBA protects renters from potential scams where individuals falsely claim to be landlords.
Toby Balazs, chief executive of the Real Estate Institute of Victoria (REIV), acknowledged the new regulation but emphasized the need for clear processes to confirm tenants have met their obligations. He expressed that the REIV hopes for more support for landlords, who provide an essential service, and believes the new offense does not contribute to this goal.
