Calls are being made for a reformed rental bond system that would allow renters to pay a bond just once during their lifetime. The McKell Institute has proposed a national portable bond scheme, enabling renters to transfer their bond from one lease to the next rather than having to secure a second deposit while waiting for the return of their previous bond. This initiative aims to ease the financial burden on renters and is estimated to save them around $2,600 over a decade by offering interest on their bond.
According to McKell Institute chief executive Edward Cavanough, this policy could significantly alleviate the cost of living pressures faced by renters in a challenging housing market. He highlighted that many renters are financially strained, and the current requirement to pay multiple bonds often keeps them in unsuitable housing situations. Cavanough criticized the political focus on homeownership, which overlooks the needs of renters, who deserve serious consideration and practical reforms that deliver immediate benefits.
He has urged the government to advance the proposal, emphasising that renters’ votes could be crucial in upcoming elections. Cavanough stressed that individuals should not be hindered by outdated bond practices when seeking better living or working conditions.