During Question Time, Abigail asked the NSW Treasurer if they will stop ripping off renters and pocketing the interest accrued on rental bond holdings that do not get passed back to the renter at the point of reimbursement.
Abigail said:
My question without notice is directed to the Treasurer. In New South Wales the Rental Bond Board currently holds around $2.29 billion in rental bonds. At a conservative interest rate, the return on that sum could easily top $100 million a year which, in the current system, is funnelled directly into the accounts of the Treasury. While rental bond holdings have exploded by 53 per cent since 2008, the Treasury has returned only enough money to support existing programs, and kept the rest. While the rental market has become much larger, housing shortages have significantly worsened, and renters need more assistance than ever. Will the Treasurer stop ripping off renters and stop pocketing the interest on their money as his own profit?
The Hon. DANIEL MOOKHEY (Treasurer): I thank the member for her question, which contains what I would generously describe as an element of argument—just a little bit. Nevertheless, it is all fair and within the bounds of the rules of the House. I just observe one fact that was omitted from the member's question, which is that we hold the funds in trust; they do not go into the Consolidated Fund. The interest that the member spoke about accrues to the fund. Incidentally, the member asked whether the Government would—I think it was—"stop ripping people off", but I would much prefer that that interest accrues to renters rather than landlords, which is the reason that we hold it in trust. Incidentally, we are using that fund right now to establish the nation's first portable bonds scheme.
Further incidentally, for the first time the Government is also using that fund to put investment into the systems, including the IT systems, that make life easier for renters. The Government has championed that policy since it was in opposition. We have implemented it while in government, and we have worked with the Tenants' Union to do so. I am also very pleased that the Government has delivered the first fundamental overhaul of rental laws in 30 years. There will always be pressure to do more, but the fact is we have abolished no‑grounds evictions and put a cap on rent increases to once every 12 months.
Ms ABIGAIL BOYD: I thank the Treasurer for his answer. Unfortunately, it does not help renters. At the moment, if someone has put down a $3,000 bond, they lose money when they get it back, because inflation is not taken into account and they do not receive the interest that the Government has made on that money. In fact, there is a provision in which New South Wales renters are theoretically entitled to a portion of the interest earned on their bonds, but the rate of return is based on the Commonwealth Bank Everyday Account Smart Access for balances of $1,000 or less, which is 0 per cent, or very close to it. New South Wales rental bonds are currently reimbursed without interest, so that does not help renters. Theoretically, the idea was that the interest earned on rental bonds would be used to pay for programs that help renters, such as tenancy support organisations and tribunals that really need it, but it has not been going to them either.
25 March 2026