The South Australian Government has declared that more than 1,500 tenants in the State have together saved around $1.3 million in residential tenancy bonds in the first month since their bond threshold was raised.
According to the Government, the Better Housing Future plan has raised the bond threshold from $250 to $800.
The change, which took effect on 1 April, is expected to ensure that for most properties only a four-week bond instead of a six week bond would be required for a property with a weekly rent of $800 or less.
Minister for Consumer and Business Affairs, Andrea Michaels said the Government was committed to addressing rental affordability in South Australia.
“South Australian tenants have saved up to $1.3 million in just the first month of us raising the bond threshold from $250 to $800,” Ms Michaels said.
“That is an incredible saving, and for someone in a median-priced house in Adelaide, it means they have saved $930 in upfront payments,” she said.
“The bond threshold had not been changed in 20 years and was completely out of step with rental prices today.”
She said the reforms were designed to make it easier for South Australians to secure a rental home in an increasingly tight market.
Premier Peter Malinauskas said he knew that renters across the State and in the country were “feeling the squeeze.”
“Rental bond thresholds had not been updated in decades and had ended up in South Australians being left thousands of dollars out of pocket,” Mr Malinauskas said.
“Together with our plan to end rent bidding, these sensible changes will help make life easier for tenants while ensuring we continue to boost new supply into the rental market,” he said.
The State Government also announced other major rent reforms announced in the Better Housing Future plan, including a ban on rent bidding via the Residential Tenancies Act.
Mr Malinauskas said it additionally returned over $13 million in unclaimed bonds as part of a campaign to reunite tenants with their old bond money.
