Western Australia has ushered in a significant overhaul of its rental bond procedures, with a new bond release and dispute mechanism officially commencing on Saturday, March 28, 2026. This launch represents the final implementation phase of reforms to the Residential Tenancies Act 1987, which were first announced in May 2023.
Understanding the New Bond Release Framework
The updated process enables property managers, landlords, and tenants to submit applications for the release of rental bonds at the conclusion of a tenancy agreement. However, REIWA President Suzanne Brown has issued a cautionary note to tenants, advising against hasty submissions immediately after moving out.
"While it might be tempting for tenants, I do not recommend they rush to apply for the bond as soon as they move out," Brown stated. "There are established processes to be followed, the bond will not be released immediately, and acting prematurely could actually add delays to the tenant receiving their bond."
Key Steps in the Bond Release Procedure
Before any bond application can be initiated, several critical steps must be completed:
- The property manager or landlord must conduct a final inspection of the premises.
- An outgoing property condition report should be provided to the tenant for review.
- Both parties are then expected to discuss any identified issues and negotiate a mutually agreeable outcome.
Brown emphasized that property managers and landlords require adequate time to organise contractors and receive invoices for any necessary repairs or maintenance once a tenant vacates. Addressing issues prior to vacating can significantly expedite the overall process.
Navigating Disputes with the Commissioner Determination Process
If both parties reach an agreement, either can apply for bond release, with the other party notified for confirmation. However, in cases where consensus cannot be achieved, disputes will now be channeled through a newly established Commissioner Determination process.
This mechanism allows both tenants and landlords to present evidence supporting their claims or in response to allegations. REIWA has expressed strong support for this change, believing it will prevent lengthy and costly court proceedings, thereby facilitating timelier bond returns for tenants.
"The determination process will prevent lengthy court processes, which will help tenants get their bond returned in a timely manner," Brown noted. "Of course, this is dependent on the Department of Local Government, Industry Regulation and Safety’s Consumer Protection division being resourced sufficiently."
Advantages of the New Dispute Resolution System
REIWA highlights that the Commissioner Determination process is expected to deliver greater consistency in dispute outcomes compared to the previous system, where cases were heard in various courts by different magistrates, leading to variable rulings.
"We believe the Commissioner Determination process will lead to greater consistency in dispute resolution, which is a good outcome for all," Brown affirmed.
Additionally, unlike court decisions, determinations regarding bond disputes will be published on the Consumer Protection website. This transparency aims to provide consistent guidance for the rental industry and the broader community.
Other Notable Changes and Broader Concerns
As part of the broader reforms, the pet bond will be increased from $260 to $350 and its permissible uses expanded beyond fumigation to cover a wider range of pet-related damages.
While REIWA welcomes these specific bond process improvements, the organisation remains vocal about other potential legislative and taxation changes affecting the rental sector. Brown expressed concerns that such reforms could negatively impact rental supply in an already challenging market, ultimately proving detrimental to tenants.
"Our concern is that these reforms could impact rental supply in a challenging market and, therefore, be detrimental to tenants," she explained.
Nevertheless, REIWA reaffirmed its commitment to collaborating with government on reforms that foster positive change while balancing the rights of both tenants and property investors.
