Understanding the New Bond Release Reforms in WA

Significant changes to the residential tenancy bond release process have come into effect in Western Australia, following the introduction of the Residential Tenancies Amendment Act 2024. These reforms, which commenced on 28 March 2026, are designed to create a more streamlined and transparent system for tenants, landlords, and property managers.

What's Changed?

One of the most notable updates is that the bond release process can now be initiated by any party tenant, owner, or managing agent. Previously, only the owner or property manager could begin this process.

In situations where there is a disagreement about how the bond should be distributed, disputes are no longer automatically handled through the Magistrates Court. Instead, they are referred to the Commissioner for Consumer Protection. All parties are given 10 days to submit supporting evidence, such as invoices, photos, and reports, before an independent decision is made.

If a party disagrees with the outcome, they can appeal to the Magistrates Court within 7 days.

Permitted Bond Claims

Owners may still claim bond funds for clearly defined reasons, including:

Damage beyond fair wear and tear
Cleaning (including carpets where required)
Garden maintenance
Unpaid rent or outstanding utilities
Missing keys or security devices
Other financial losses due to a breach of the tenancy agreement

It's important to note that fair wear and tear cannot be claimed against the bond.

Additional Updates

The maximum pet bond has increased to $350 (applicable at the next rent increase).
New provisions are in place to manage bond release in the event of a tenant's passing without probate or administration.

What We're Seeing in Practice

While these reforms aim to simplify the process, early industry feedback has been mixed.

We are currently seeing delays in determinations, with some cases lodged at the commencement of the reforms still awaiting outcomes. Additionally, once a matter is referred to the Commissioner, there is no opportunity for further negotiation between parties.

There are also reports that outcomes may differ from what would historically have been awarded through the Magistrates Court, creating some uncertainty across the industry.

In more complex situations - such as when property owners reside outside of WA - there may be limitations on the Commissioner's ability to rule, requiring escalation back to the Magistrates Court.

Best Practice Moving Forward

Despite these changes, one principle remains consistent: the best outcomes are achieved when both parties negotiate reasonably.

Tenants are responsible for returning the property in a condition as close as possible to the start of the tenancy, allowing for fair wear and tear. Landlords should consider factors such as the length of tenancy, number of occupants, and seasonal impacts, particularly for gardens.

Clear, well-documented evidence remains critical. Where damage is evident and supported, claims are generally strong. However, where issues fall within the scope of fair wear and tear, decisions are likely to reflect this.

A Note for Property Owners

We understand the financial pressures of owning an investment property. However, the period between tenancies presents an excellent opportunity to maintain and enhance your asset.

Improvements such as fresh paint, updated flooring, modern lighting, and garden refreshes not only protect your investment but also attract high-quality tenants and support strong rental returns.