Rental Bonds (ACT)

In the ACT, residential tenancies are governed by the Residential Tenancies Act 1997, which sets out the rights and responsibilities of tenants and landlords in relation to rental premises. In most cases, when a person enters a residential tenancy agreement in the ACT, they will be required to pay a rental bond, also known as a security deposit. This page deals with rental bonds in the ACT.

What are rental bonds?

A rental bond is an amount of money that acts as security for the tenant’s performance of their obligations under a lease. A bond can be paid to the lessor upon entering into a residential tenancy agreement (in which case, the lessor must deposit it with the ACT Revenue Office) or it can be paid directly to the ACT Revenue Office. A landlord can be fined if they fail to lodge a bond with the Revenue Office.

Payment of rental bonds

In the ACT, a lessor may require a tenant to pay a bond that is equal to the amount of four weeks’ rent. The tenant must be given a receipt upon payment of a bond.

Condition report

When a tenant moves into a rental property, they must be sure to complete the Condition Report provided by the lessor very carefully. This will be used as evidence of the condition the property was in at the start of the tenancy in the event the lessor seeks to deduct money from the bond to cover repairs.

Refund of bond

A bond is refunded at the end of a tenancy. However, a lessor may deduct certain expenses from the bond. To claim deductions, the lessor must have evidence of the expenses claimed.

Under section 31 of the Residential Tenancies Act 1997, the expenses that may be claimed out of a rental bond in the ACT are:

• the reasonable cost of repairs needed to the property

• the reasonable cost of securing the premises (for example, the replacement of keys)

• outstanding rent

• the reasonable cost of replacing fuel provided to the premises

• the reasonable cost of legal fees for assigning the tenant’s rights under the lease

• any amount specified in a term of the lease agreement if the term has been endorsed by the ACT Civil and Administrative Tribunal (ACAT)

At the end of a lease, parties must conduct a final inspection of the property and complete a condition report. If the parties are in agreement about the refund of the bond and any deductions, they can sign the bond release form and lodge it with the Revenue Office. If there is no agreement, the tenant can lodge a bond release form seeking the refund of the bond.

Disputes about bonds

If a tenant lodges a bond refund form with the Revenue Office, and the lessor does not dispute the application within two weeks, the bond amount must be paid back to the tenant.

If a lessor lodges a bond refund form with the Revenue Office, and the tenant does not dispute the application within two weeks, the bond amount must be paid out to the parties in accordance with the application.

If a party makes a bond refund application and the other party disputes the application, ACAT must refer the matter to ACAT. If only part of the bond amount is in dispute, the part that is not in dispute must be paid out prior to referring the matter to ACAT.

ACAT will then invite the parties to a conference to try to resolve the dispute. If no agreement can be reached, ACAT will conduct a hearing where it will make orders as to how the bond money is to be distributed after hearing evidence from both parties.

An ACAT decision can be appealed within 28 days of the decision. Written reasons for the decision can be requested. The appeal is made to the ACAT Appeal Tribunal.

An appeal against a decision of the ACAT Appeal Tribunal can be made to the ACT Supreme Court within 28 days of the decision.

If you require legal advice or representation in any legal matter, please contact Go To Court Lawyers.