ACT
See section 39. Any bond must not be more than the rent payable for a 3-month period under the lease.
See section 41. The landlord must not unreasonably refuse to accept a bank guarantee instead of a bond.
See section 42. The landlord must account to the tenant for any interest earned on bonds which must be invested by the landlord in an interest-bearing account.
NSW
See Part 2A and sections 16A-16ZC. A landlord is not entitled to unreasonably refuse to accept a bank guarantee in satisfaction of any requirement to provide a security bond, other bond, or third-party guarantee for the performance of the lessee's obligations under the lease.
Where a landlord receives a bank guarantee it must return the bank guarantee (unless it expired) within 2 months after the tenant completes its performance of the obligations under the lease.
Where a landlord (or its agent) receives a security bond for a lease or a proposed lease, the landlord must within 20 business days deposit the amount with the Secretary.
Where section 16D applies, the landlord or the landlord's agent must deposit with the Secretary within 3 months after the relevant day an amount equivalent to the current balance of the amount deposited or paid.
Section 16E. No one other than the Secretary is to receive interest in respect of the bond.
Section 16G. An application to the Secretary to pay out an amount of money may be made:
- jointly by the landlord and tenant; or
- by landlord alone; or
- by the tenant alone.
The Secretary may after receiving notice of a judgment or order relating to a security bond, pay out money. The Secretary must not pay out money if an appeal has been lodged.
Division 5: the following accounts are to be established in accordance with the law:
- a Retail Leases Security Bonds Trust Account; and
- a Retail Leases Security Bonds Interest Account.
The Secretary may establish an online retail bond service to facilitate the deposit, claims payment and receipt process. A person must not require another person to use the online retail bond service. There is a penalty imposed of up to 50 penalty units if a person requires the lessee or other person to use the online service.
NT
See section 63. Security deposits have to be held either in an interest-bearing account or in a licensed real estate agent's account.
If the landlord holds the security deposit in an:
- interest-bearing account, it must account to the tenant for interest earned but the landlord is entitled to capitalise the interest so that it forms part of the security deposit; or
- in a licensed real estate agent's account, Part V of the Agent's Licensing Act applies.
Landlords are not entitled to unreasonably refuse to accept a bank guarantee in satisfaction of the requirement to provide a security deposit.
The landlord may appropriate security moneys in accordance with a lawful entitlement to do so.
QLD
There are no specific provisions regarding the form of security or how it is to be dealt with by the landlord. However, see commentary on section 39 in "Key money prohibited" - a landlord can obtain a repayable bond from the tenant to secure the tenant's obligations under the lease.
SA
See sections 19-20 and 20AA. A person cannot require more than 1 security bond for the same shop or require the payment of an amount by way of security under a security bond exceeding the value of 3 months' rent (ex GST). The maximum amount of the security bond is to be calculated by reference to the rent payable in the first 12 months of the lease.
The landlord is required to return any bank guarantee to the tenant within two months of the tenant discharging the obligations secured by the bank guarantee.
TAS
See section 30. The landlord must not unreasonably refuse to accept a bank guarantee instead of a security deposit (section 30(4)).
Security deposit limited to 3 months' rent (section 30(1)).
The landlord must account to the tenant for interest. This security deposit must be held in an interest-bearing account.
VIC
See section 24. The landlord must keep a security deposit in an interest-bearing account and account to the tenant for any interest earned.
A landlord must return a security deposit within 30 days after the end of the lease.
WA
No mention in the Act and there are no regulations around them. It is left in the landlord's discretion whether or not to accept one and if it does so how the bond is to be dealt with.
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