Industry NewsNewsNSW

Tenants to benefit from Better Business Reforms

The NSW Government says tenants and small business owners across the state will benefit from a $41 million savings boost after the final part of the NSW Coalition’s Better Business Reforms passed Parliament.

“My Better Business Reforms are cutting red tape and putting more savings back into the pockets of hard-working small business owners around NSW,” said Minister for Better Regulation Matt Kean.

“These reforms are helping to create a stronger, better future for NSW consumers and small business owners. Thanks to these common-sense improvements, the NSW Coalition is saving them a total of more than half a billion dollars over 10 years.”

The main change for tenants is a simplification of the rental bond rollover process, which will save them $35 million over 10 years by allowing tenants to easily transfer their bond from one lease to another.

“The new rental bond rollover system is a big win for tenants throughout NSW and we’re expecting to see it potentially benefit up to 300,000 new tenancies annually,” Mr Kean said.

“Having to fork out thousands of dollars for a new bond while waiting for the other to be released causes significant financial stress for families.

“With these changes, renting families will only have to lodge one bond, which can be transferred from one rental property to another.”

The other changes to come in the reforms are –

  • Cutting red tape for small businesses that have to deal with uncollected goods by simplifying the process of disposing of abandoned items, saving $6 million in a decade
  • Scrapping outdated and redundant laws, including, for example, an innkeeper’s liability for damage to guests’ horses and their harnesses.

Greg Bader, CEO, Rent.com.au said, “With 30 per cent of the population renting, changes that can make the process easier and less intimidating are always welcomed. With bonds specifically, we know that for 60 per cent of renters it can be a challenge to raise additional funds for a new bond if the previous one is not yet released.

“As always, we will need to see the details on how this transfer process is managed before passing judgement. If it’s as smooth and simple as promised, it will be a winner.”

Rent.com.au asked its customers nationwide if bonds were a source of financial concern for them; 60 per cent said the last time they moved they struggled to raise the bond.

Based on 642 responses, here’s how renters are paying for their bond:

  • Paid it from my savings (48 per cent)
  • Borrowed from my family and friends (17 per cent)
  • Paid it with my credit card (10 per cent)
  • Received Government bond assistance (8 per cent)
  • Used RentBond (7 per cent)
  • Transferred the bond from a previous property (5 per cent)
  • Got a personal loan (4 per cent)
  • Other (2 per cent)

The Better Business Reforms are the culmination of a consultation process in which Mr Kean asked more than 100 business groups, academics and think-tanks for ideas to remove red tape and make it easier to start and stay in business.

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Hannah Blackiston

Hannah Blackiston is the Deputy Editor of Elite Agent and real estate obsessive who splits her time between stalking auctions and lusting over luxury listings. She fell into property journalism 5 years ago and never looked back.

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