Western Australia Security Bond Laws: Limits, Lodgement, and Returns

Governed by the Residential Tenancies Act 1987 (WA), which commenced on 1 July 1989, Western Australia's security bond system is unique in Australia because all bonds must be held by a government-administered body—the Bond Administrator—rather than by the landlord or property manager. This provides strong protection for tenants while ensuring landlords have straightforward access to funds for legitimate claims.

Bond Limits

Standard Residential Properties

For properties where the weekly rent is $1,200 or less, the maximum security bond a landlord can charge is equivalent to four weeks' rent (s. 29(2)(b)).

For properties where the weekly rent is more than $1,200, there is no statutory cap on the bond amount. However, the bond must still be lodged with the Bond Administrator.

Pet Bonds

If a tenant keeps a pet that is capable of carrying parasites transmissible to humans (e.g., dogs and cats), the landlord may request an additional pet bond of up to $350 (s. 29(1)(b)(ii)). Key rules as of 28 March 2026:

• This is a one-time amount, regardless of the number of pets.
• It cannot be charged for assistance animals.
• It is separate from the standard security bond and can be used for any pet-related damage or fumigation.

Bond Increases

A landlord can increase the security bond during a tenancy if the rent increases (s. 31). However, rent (and the associated bond) can only be increased once every 12 months (s. 30(2A)). The total bond held must not exceed the permitted limit (e.g., four weeks' rent for properties at or below the $1,200 threshold), and at least 60 days' written notice of the increase is required.

Lodging the Bond

Landlords or property managers must lodge the tenant's bond with the Bond Administrator (part of the Department of Energy, Mines, Industry Regulation and Safety) within 14 days of receiving the payment (s. 29(4)).

Failure to lodge the bond with the Bond Administrator is an offence under the Residential Tenancies Act 1987.

The landlord must provide the tenant with a receipt for the bond payment and, once lodged, the Bond Administrator sends confirmation to the tenant.

Returning the Bond

At the end of the tenancy, a final property inspection is conducted using the original Property Condition Report (PCR) as a benchmark. Under the streamlined process effective 28 March 2026, the bond disposal process is as follows:

When Both Parties Agree

Any party to the bond (landlord, tenant, or agent) can now initiate an application for the bond's release independently through the Bond Administrator (Schedule 1). Once an application is lodged, the Bond Administrator notifies the other parties, who then have 14 days to either agree to the distribution or dispute the claim. If undisputed, the Bond Administrator typically returns the funds within 7 to 10 business days.

When There Is a Dispute

If a claim is disputed or the other party does not respond within 14 days:

1. The Commissioner for Consumer Protection determines the dispute via a 'Commissioner Determination' (s. 11M).
2. Parties are given 10 days to submit evidence to support their position once notified of the dispute.
3. A party dissatisfied with the Commissioner’s Determination has a specific 7-day window to appeal the decision to the Magistrates Court (s. 11V).

Important: It is illegal for a landlord to ask a tenant to sign the bond disposal form before the tenancy has ended.

Allowable Deductions

Landlords may claim deductions from the bond for:

Best Practices for WA Landlords

1. Complete a thorough PCR at move-in: Include date-stamped photos for every room. The PCR is your evidence in any bond dispute.
2. Lodge bonds promptly: You have 14 days, but lodging immediately protects you from potential penalties.
3. Conduct the final inspection together: Invite the tenant to attend so both parties can agree on any issues before signing the disposal form.
4. Keep records: All communication regarding the bond should be documented in writing.

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