Residential Tenancies Act 1987

In this section, unless the contrary intention appears —

A person must not —

require the payment of, or receive, more than one security bond in relation to any residential tenancy agreement; or

require the payment of, or receive, a security bond of an amount exceeding in the aggregate —

4 weeks’ rent under the residential tenancy agreement in relation to which it is required or received; and

if the tenant is permitted to keep a pet at the premises — a prescribed amount to meet the cost of any damage caused by the pet or fumigation of the premises that may be required on the termination of the tenancy.

Subsection (1)(a) does not prevent a person from receiving a security bond in instalments.

Subsection (1)(b) does not apply in relation to a residential tenancy agreement where the weekly rate of rent payable under the agreement exceeds a prescribed amount.

Where, during the period of 6 months after the day on which the tenancy under a residential tenancy agreement commenced, the rent payable under the agreement decreases or is decreased, the amount paid in excess of the lower or, as the case may be, lowest rate of rent payable under the agreement during that period, together with the amount (if any) allowed by subsection (1)(b)(ii), shall be deemed to have been paid as a security bond.

A person who receives a security bond paid in relation to a residential tenancy agreement —

must, as soon as practicable, give the person who paid the bond a receipt stating the following matters —

the date on which the bond was received;

the name of the person who paid the bond;

the amount of bond paid;

the premises to which the bond relates;

must pay the bond to the bond administrator as soon as practicable, and in any event within 14 days, after the day on which the person received the bond; and

must, when paying the bond under paragraph (b), lodge a record of the payment, in the approved form, with the bond administrator.

A security bond must be paid to the bond administrator under subsection (4)(b) in a prescribed way.

A person shall not make an entry in a record referred to in subsection (4)(c) that the person knows is false or misleading in a material particular.

Nothing in subsection (1)(a) prevents the lessor from requiring further payment from a remaining tenant towards the security bond in order to cover the disposal of a former tenant’s portion of the security bond under section 17B(3).