Proposal to Ease Financial Burden on Renters
A new proposal in Australia is gaining attention, aiming to allow renters to pay a rental bond only once in their lifetime. The McKell Institute has recommended a ‘National Portable Bond Scheme’ that would enable renters to transfer their bond when signing new lease agreements, instead of paying an additional bond each time. Under this system, renters would also earn interest on their bond, potentially saving approximately $2,600 over 10 years.
Need for the Policy and Expected Benefits
The introduction of this policy stems from the severe financial strain currently faced by renters, with repetitive bond payments trapping many in unfair housing situations. Edward Cavanough, Chair of the McKell Institute, criticized the focus on benefiting homeowners while neglecting renters, stating, “The Australian dream of home ownership is out of reach for many, and the political system remains too focused on homeowners’ interests.” He emphasized the need for practical and effective reforms to support renters.
Call for Political Action
Cavanough urged the government to actively pursue this proposal, describing it as a critical opportunity to win the support of renters. He stated, “The outdated bond system should not prevent people from moving for new jobs, education, or better living conditions.” Meanwhile, recent studies have revealed that Sydney remains the most expensive city for renters in Australia, with Perth rising to the second spot due to recent rent increases.