The McKell Institute's WA branch has called on the Cook Government to introduce portable bonds and modernise the bond system, which the institute says could let tenants earn interest on deposits. It says double bonds make it harder for workers to move.
The institute said the proposal, outlined in the Make it Portable report released Monday, could save renters an upfront cost of about $3000, the standard four-week bond at Perth's current median advertised rent of $750 a week. It argued the burden of finding thousands for a new bond while a previous one is still tied up is prohibitive.
Both Victoria and New South Wales introduced portable bond schemes this year, and South Australia has funded one. The institute also called for modernising the bond payments system so renters can earn interest on their deposit while it sits dormant.
McKell Institute WA executive director Jessica Bukowski said the double bond made it harder for people to move for work. "A portable bond, delivered alongside a modernised bond lodgement system, is a practical, modest-cost way to help workers move to where they are needed," she said.
The Real Estate Institute of WA has also backed the concept. President Rob Mandanici said in the organisation's pre-budget submission: "We are also suggesting a bond portability scheme to allow tenants to transfer their bond between eligible tenancies in exchange for a small fee, similar to the new scheme recently introduced in Victoria."
Commerce Minister Tony Buti was approached for comment.
Analysis
Why This Matters
- Portable bonds could save WA renters thousands in upfront costs when moving, a significant barrier in a tight rental market
- Allowing tenants to earn interest on bonds would turn 'dead money' into a financial return, a first nationally if implemented
- The proposal targets a workforce mobility issue, potentially helping WA attract and retain essential workers in a competitive labour market
Background
WA's rental market has tightened since COVID-19, with median advertised rents in Perth rising to $750 a week. Over 60,000 tenancies end each year, with the typical lease lasting less than two years, according to the McKell Institute. Other states have already acted: Victoria and NSW introduced portable bond schemes in 2026, and South Australia has funded one.
Key Perspectives
McKell Institute WA: Says the double-bond burden is an upfront barrier that makes it harder for people to move for work, and that a portable bond paired with a modernised lodgement system is a practical, modest-cost reform. It also argues renters should earn interest on their bond, modelled at over $5000 in returns on a $3000 bond in a conservative investment option.
Real Estate Institute of WA: Supports a bond portability scheme with a small fee, similar to Victoria's new scheme, as stated in its pre-budget submission.
What to Watch
- Whether the Cook Government signals support or introduces legislation in the coming months
- The outcome of the Commerce Minister's response after being approached for comment
- Whether South Australia implements its funded portable bond scheme before WA acts
Checked
11 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedThe McKell Institute’s WA branch is urging the Cook Government to introduce portable bonds.Brisbane Times - Latest News: “The McKell Institute’s WA branch has called on the Cook Government to follow Victoria and New South Wales and legislate a “portable bond””
- SupportedThe institute is proposing modernisation of the bond system so renters could earn interest while a bond sits dormant.Brisbane Times - Latest News: “The institute is also calling for modernisation of the bond payments system, which would also allow the renter to earn interest on their “dead money” while it is sitting dormant.”
- SupportedThe institute says double bonds make it harder for people to move for work.Brisbane Times - Latest News: ““The double bond is an up-front barrier that makes it harder for people to move for work, and to move closer to the jobs and communities they want to be part of.””
- SupportedThe report was released Monday.Brisbane Times - Latest News: “According to the institute’s Make it Portable report released on Monday”
- SupportedThe proposed portability scheme could save renters an upfront cost of about $3,000, based on a standard four-week bond and Perth’s median advertised rent of $750 a week.Brisbane Times - Latest News: “The institute argued that not needing to pay for a new bond could save renters an upfront cost of about $3000, which is the standard four-week bond rate at Perth’s current median advertised rent of $750 week.”
- SupportedThe institute says finding thousands for a new bond while the previous bond is tied up is prohibitive.Brisbane Times - Latest News: “the institute argued the impost of finding thousands of dollars for a new bond while their old bond was locked up was prohibitive.”
- SupportedVictoria and New South Wales introduced portable bond schemes this year, and South Australia has funded one.Brisbane Times - Latest News: “Both Victoria and New South Wales introduce portable bond schemes this year while South Australia has funded one.”
- SupportedJessica Bukowski said: “A portable bond, delivered alongside a modernised bond lodgement system, is a practical, modest-cost way to help workers move to where they are needed.”Brisbane Times - Latest News: ““A portable bond, delivered alongside a modernised bond lodgement system, is a practical, modest-cost way to help workers move to where they are needed.””
- SupportedThe Real Estate Institute of WA has backed the concept.Brisbane Times - Latest News: “The idea has the support of the Real Estate Institute of WA with president Rob Mandanici calling for a scheme in the organisation’s pre-budget submission.”
- SupportedRob Mandanici said the organisation was suggesting a bond portability scheme allowing transfers between eligible tenancies for a small fee, similar to Victoria’s new scheme.Brisbane Times - Latest News: ““We are also suggesting a bond portability scheme to allow tenants to transfer their bond between eligible tenancies in exchange for a small fee, similar to the new scheme recently introduced in Victoria,” he said.”
- SupportedCommerce Minister Tony Buti was approached for comment.Brisbane Times - Latest News: “Commerce Minister Tony Buti was approached for comment.”