Bond Assistance Loan monies must be lodged too! - Real estate industry bulletin 190
7 February 2019
Bond Assistance Loan monies must be lodged too!
As with any tenant bonds, all payments received via the Department of Communities Bond Assistance Loan Scheme must be lodged with the Bond Administrator at Consumer Protection within 14 days after receipt of the bond.
We’re acting on non-compliance
Consumer Protection conducted a data matching exercise with the Department of Communities that has revealed a large number of instances where the landlord or property manager has failed to lodge Bond Assistance Loan Scheme monies. As a result, we will be contacting all landlords and property managers in violation of this requirement to seek that they immediately lodge these bonds for all current tenancies, and to further examine older tenancies in their portfolio.
Check your records
We strongly encourage you to check that all your tenancy bonds meet the lodgement requirements and to take immediate action for any that do not.
How to lodge on time and correctly
Real estate agents and property managers are required to lodge a security bond as an eTransaction via the BondsOnline system, with a few exceptions in certain situations. All lodgements must be filed within 14 days of receipt of the bond.
A written record of the bond paid must be readily accessible and be kept for at least six years.
Failure to issue a bond receipt (even if the bond was paid electronically) could attract a $2,000 infringement notice.
If the tenant is paying the bond by instalments, do not wait until you receive the full amount. Each instalment must be lodged within 14 days of receiving it.
Failing to lodge can be costly!
Each instance of failing to lodge a bond within 14 days of receipt can result in an infringement notice of $2,000 or, if prosecuted in Magistrates Court, a fine for up to $20,000.
You can also seek advice from the Bond Administrator via email or by calling 1300 853 829.