The McKell Institute welcomes the South Australian Government’s announcement of a portable bond scheme, a major win for renters across the state.
The scheme, first proposed in a McKell Institute report Rewarding Renters and Landlords to Make SA Competitive, allows rental bonds to be transferred automatically between tenancies, ending the unfair practice of renters having to pay a new bond before their previous one is returned.
Executive Director SA/NT at the McKell Institute Hannah MacLeod said this move is a significant win for renters and a smart step for the state.
“This is practical reform that will make a real difference to thousands of renters across South Australia,” Ms MacLeod said.
“No renter should have to stump up thousands of dollars each time they move house just because of laggy admin. For many households, the overlap in bond payments can mean taking on debt or delaying a move to a safer or more secure tenancy.
“A portable bond scheme removes the pressure associated with moving and modernises the system to reflect how people live and work today.
“This practical, low-cost reform strengthens liveability and when skilled workers or young families are deciding where to live, the ease and fairness of the rental system is a key priority.”
While the reform is welcomed, the McKell Institute will continue advocating the introduction of a renters’ dividend where tenants receive interest earned on their bond, and longer-term leases that provide greater security and stability.
“Portable bonds are a major step forward but we will continue to advocate to ensure renters receive a fair return on their own money and create a rental market where longer leases are the norm,” Ms MacLeod said.
Contact details:
Hannah MacLeod 0431 264 036 / Lauren Ferri 0422 581 506