The end of a tenancy should be straightforward: the tenant moves out, the landlord inspects, and the bond gets returned. But it doesn't always work that way.
Bond disputes are one of the most common sources of conflict between landlords and tenants in Australia. Whether you're a landlord trying to claim for legitimate damage or a tenant fighting an unfair deduction, this guide explains how the system works and how to handle disputes fairly.
Quick Summary
What you'll learn:
- How rental bonds work in each state
- What you can (and can't) claim bond for
- The difference between damage and fair wear and tear
- How to make a claim that stands up
- How to dispute a claim you disagree with
- The resolution process if you can't agree
How Rental Bonds Work in Australia
When a tenant signs a lease, they pay a bond (usually 4 weeks' rent) that's held by a government authority, not the landlord. This protects the tenant's money and ensures there's a neutral process if disputes arise.
Bond Authorities by State
| State | Bond Authority | Website |
|---|---|---|
| NSW | NSW Fair Trading | fairtrading.nsw.gov.au |
| VIC | Residential Tenancies Bond Authority (RTBA) | rtba.vic.gov.au |
| QLD | Residential Tenancies Authority (RTA) | rta.qld.gov.au |
| WA | Bond Administrator | commerce.wa.gov.au |
| SA | Consumer and Business Services | cbs.sa.gov.au |
| TAS | Rental Deposit Authority | cbos.tas.gov.au |
| ACT | ACT Revenue Office | revenue.act.gov.au |
| NT | NT Consumer Affairs | consumeraffairs.nt.gov.au |
The bond can only be released when both parties agree, or when a tribunal makes an order. Neither the landlord nor the tenant can unilaterally take the money.
What Can Landlords Claim Bond For?
Valid Bond Claims
You can make a claim against the bond for:
Unpaid rent: If the tenant owes rent at the end of the tenancy, this can be deducted from the bond. Your rental ledger should clearly show any arrears.
Damage beyond fair wear and tear: If the property has damage that wasn't there at the start of the tenancy, and it's not normal wear, you can claim repair costs.
Cleaning: If the property wasn't left in a reasonably clean condition compared to the start of the tenancy.
Unpaid utility bills: In some states, if the tenant was responsible for utilities and hasn't paid them.
Missing items: If the property was let furnished and items are missing.
Lease break costs: If the tenant broke the lease early and this resulted in costs (like re-advertising).
What You Cannot Claim For
Fair wear and tear: Normal deterioration from everyday use. More on this below.
Pre-existing damage: Anything documented in the entry condition report.
Improvements you want to make: Using bond to upgrade the property isn't permitted.
Routine maintenance: Things that would need doing regardless of the tenant.
Excessive claims: Quotes that are unreasonably high or include unnecessary work.
The Condition Report is Everything
Here's the truth: most bond disputes come down to documentation. Without a thorough condition report at the start and end of the tenancy, it's your word against theirs.
What the Condition Report Should Include
Entry condition report (start of tenancy):
- Room-by-room description of condition
- Photos of every room, from multiple angles
- Close-ups of any existing damage or wear
- Date and time stamps on all photos
- Signed acknowledgment from the tenant
Exit condition report (end of tenancy):
- Same room-by-room structure as entry report
- Comparative photos from the same angles
- Notes on any new damage or changes
- Comparison with entry report
Why This Matters
In Victoria, laws require landlords to provide evidence for bond claims. Simply saying "cleaning required" isn't enough. You need the entry condition report showing it was clean, photos showing it's now dirty, and a quote for the cleaning.
Without proper documentation, your claim is likely to fail at tribunal.
Fair Wear and Tear: The Grey Area
"Fair wear and tear" is where most disputes happen. The law says tenants aren't responsible for normal deterioration from everyday living. But what's "normal"?
Examples of Fair Wear and Tear
IS fair wear and tear (tenant NOT responsible):
- Faded curtains from sunlight
- Small scuff marks on walls from furniture
- Worn carpet in high-traffic areas
- Minor marks around light switches
- Loose door handles from normal use
- Faded paint over time
- Small nail holes from hanging pictures (state-dependent)
IS NOT fair wear and tear (tenant MAY be responsible):
- Large holes in walls
- Burns or stains on carpet
- Broken windows or doors
- Pet damage (scratches, stains, odours)
- Mould from not ventilating properly
- Oil stains on driveway
- Excessive dirt requiring professional cleaning
The Key Test
Ask: "Would this have happened with any reasonable tenant living here for this period?"
If yes, it's probably fair wear and tear. If the damage is unusual, excessive, or results from carelessness or misuse, it's likely claimable.
Duration Matters
A 5-year tenancy will naturally show more wear than a 6-month one. Tribunals consider the length of tenancy when assessing claims. Worn carpet after 8 years? Fair wear. Worn carpet after 8 months? Might be a concern.
How to Make a Bond Claim (Landlords)
Step 1: Conduct the Final Inspection
Do this with the tenant present if possible. Walk through the property together with both the entry and exit condition reports. Note any areas of disagreement.
Step 2: Compare Entry and Exit Reports
Go room by room. Identify anything that has changed for the worse and isn't fair wear and tear.
Step 3: Get Quotes
For any claimed damage or cleaning:
- Get at least one written quote (two is better)
- Ensure quotes are itemised
- Keep quotes reasonable (inflated quotes will be rejected)
Step 4: Calculate Your Claim
Be specific:
- Cleaning: $250 (professional clean quote attached)
- Carpet stain removal: $180 (quote attached)
- Wall repair: $120 (quote attached)
- Total claim: $550
Step 5: Communicate with the Tenant
Before lodging a formal claim, tell the tenant what you're claiming and why. Include:
- Specific items you're claiming for
- Photos comparing entry and exit condition
- Quotes supporting your amounts
Many disputes can be resolved at this stage if you're transparent about your reasoning.
Step 6: Lodge the Bond Claim
If the tenant agrees, both parties sign the release form and the bond authority distributes funds accordingly.
If the tenant disagrees, you'll need to apply for dispute resolution (see below).
How to Dispute a Bond Claim (Tenants)
Step 1: Request Full Details
Ask the landlord for:
- A copy of the entry condition report
- A copy of the exit condition report
- Photos supporting their claim
- Itemised quotes for any work
You have a right to understand exactly what's being claimed and why.
Step 2: Review the Evidence
Compare the entry and exit condition reports. Look for:
- Items already noted as damaged at entry
- Normal wear and tear being claimed as damage
- Inflated or unreasonable quotes
- Claims for things not your responsibility (e.g., routine maintenance)
Step 3: Respond in Writing
If you disagree with any part of the claim, respond in writing explaining:
- What you agree with (if anything)
- What you disagree with
- Your reasons (with evidence if possible)
- What you think is fair
Step 4: Try to Negotiate
Many disputes can be resolved through discussion. Perhaps you agree to pay for cleaning but dispute the damage claim. Finding middle ground saves everyone time and stress.
Step 5: Apply for Dispute Resolution
If you can't agree, either party can apply to the relevant state authority for mediation or a tribunal hearing.
The Dispute Resolution Process
Step 1: Application
Either party (usually the landlord) applies for dispute resolution through the state bond authority or tribunal.
Step 2: Mediation (Some States)
Some states offer free mediation first. A neutral mediator helps both parties reach an agreement without going to tribunal.
Step 3: Tribunal Hearing
If mediation fails (or isn't offered), the case goes to a tribunal hearing. Both parties present their evidence, and a tribunal member makes a binding decision.
What Tribunals Look For
- The condition reports (entry and exit)
- Photographic evidence
- Quotes and invoices
- The length of tenancy
- Whether the property was returned in a similar condition to how it was received (allowing for fair wear and tear)
Typical Timeline
From dispute application to resolution: 2-8 weeks depending on the state and tribunal workload.
Tips to Avoid Bond Disputes
For Landlords
Document everything at the start: A thorough entry condition report is your best protection. Include photos, videos, and written descriptions.
Do regular inspections: Catch issues early rather than discovering them at the end.
Be reasonable: If you're claiming $500 for "cleaning" when the place needs a quick vacuum, expect pushback.
Communicate clearly: Let tenants know your expectations before they move out.
Fix issues yourself first: Sometimes it's easier to do minor repairs and move on than fight over small amounts.
For Tenants
Complete the entry condition report thoroughly: Note every mark, scratch, and imperfection. Take your own photos.
Document everything when you leave: Do a final walkthrough with photos before handing back keys.
Clean properly: The #1 reason for bond claims is cleaning. Do it well or hire professionals.
Attend the final inspection: Being there lets you address concerns immediately.
Keep communication in writing: If there's a dispute, written records matter.
State-Specific Considerations
NSW
Bond claims must be lodged within 14 days of the tenancy ending. After that, the tenant can request full bond return.
Victoria
Landlords must provide evidence for bond claims, including condition reports and documentation to substantiate claims.
Queensland
The RTA offers free dispute resolution. Either party can apply if they can't agree.
Western Australia
Disputes go to the Magistrates Court if mediation fails.
South Australia
SACAT handles bond disputes. Claims must be lodged within 2 years.
Key Takeaways
- Document everything: at the start, during, and end of the tenancy
- Understand fair wear and tear: normal use isn't claimable
- Be transparent: share evidence and communicate openly
- Try to negotiate: tribunal should be a last resort
- Keep it proportionate: small claims aren't worth big fights
Bond disputes are stressful for everyone. But with proper documentation and fair expectations, most can be resolved without escalation. And if they can't? At least you'll have the evidence you need.
State Rental Law Guides
For state-specific rules on bonds, notice periods, and landlord obligations: