Calculates the estimated cost of breaking a residential lease in Australia, based on your state and lease details.
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What is a rental bond in Australia?
A rental bond (also called a security deposit) is money a tenant pays at the start of a lease to cover unpaid rent, damage or other debts at the end of the tenancy. In most states the landlord or agent must lodge it with a government authority rather than keep it. Examples are NSW Fair Trading's Rental Bond Board, the Residential Tenancies Bond Authority in Victoria, the RTA in Queensland and the Bond Administrator in Western Australia. It is returned to the tenant at the end of the tenancy, less any amount properly claimed.
How the maximum bond is calculated
Each state and territory sets its own limit. The calculator multiplies your weekly rent by the number of weeks your state allows. The usual rule is four weeks of rent. The main differences are:
| State or territory | Usual maximum | When the standard cap does not apply |
|---|---|---|
| NSW | 4 weeks of rent | No exception for high rents |
| Victoria | 1 month of rent | Weekly rent above $900 |
| Queensland | 4 weeks of rent | Weekly rent above $700 |
| Western Australia | 4 weeks of rent | Weekly rent of $1,200 or more |
| South Australia | 4 weeks up to $800 a week; 6 weeks above $800 a week | A cap always applies |
| Tasmania | 4 weeks of rent | No exception for high rents |
| ACT | 4 weeks of rent | No exception for high rents |
Where the cap does not apply, the law does not set a ceiling. The calculator then shows the usual amount as a reference only and tells you so.
A worked example
A tenant in Adelaide rents a flat for $400 a week. Because the rent is $800 a week or less, South Australia allows up to four weeks of rent, so the maximum bond is $1,600. If the agent asks for $3,000, the request is $1,400 over the limit. If the rent were $900 a week, which is above $800, the limit rises to six weeks and the maximum bond would be $5,400. In Sydney, a $400 rent would also give a maximum of four weeks, or $1,600.
Common situations
- Rent paid fortnightly or monthly: convert to a weekly figure first. Halve a fortnightly rent. For a monthly rent, multiply by 12 and divide by 52.
- Furnished properties: furnishing does not raise the cap in the states covered here.
- Pets: some states allow an extra pet bond, for example Western Australia. Other states do not allow it. This is not included in the calculation.
- Holding deposits: a holding deposit paid before signing is separate. It usually counts towards the bond or rent once the lease starts.
- Rent increases: a landlord generally cannot ask for a top-up of the bond just because the rent goes up, unless your state's law allows it.
What to do after you pay a bond
Always get a receipt for the amount you pay and keep the lodgement reference from the bond authority. A Letter Confirming Receipt of Deposit is a simple record of how much was paid, when, and for what purpose. At the end of the tenancy, a Letter to Request Return of Residential Tenancy Deposit lets a tenant ask for the bond back, with the property address, bond reference and refund details. Landlords who intend to claim part of the bond should follow their state's process and use the authority's official forms.
Keep in mind
Bond limits and rent thresholds are changed from time to time. Check your state authority's website before you pay or ask for a bond. The Northern Territory is not covered here, and the calculator gives general information, not advice on your particular lease.