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

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 less than $1,200, the maximum security bond a landlord can charge is equivalent to four weeks' rent.

For properties where the weekly rent is $1,200 or more, 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 $260. Key rules:

• 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.

Bond Increases

A landlord cannot increase the bond during the tenancy, even if the rent increases or the property is damaged. The bond amount is locked in at the start of the tenancy agreement.

Lodging the Bond

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

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. The process for returning the bond depends on whether both parties agree:

When Both Parties Agree

Both the landlord and tenant complete and sign a Joint Application for Disposal of Security Bond form. This can be submitted online through the BondsOnline system or via a paper form. Once processed, the Bond Administrator typically returns the funds within 7 to 10 business days.

When There Is a Dispute

If the landlord and tenant cannot agree on how the bond should be distributed:

1. The Commissioner for Consumer Protection can now hear and determine bond disputes as an independent authority (a reform introduced in 2024).
2. Either party can also apply to the Magistrates Court for a determination.

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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