Bond Claims and Disputes in Australia: 10 Facts Landlords Should Know
Explore state-by-state data on claims and disputes so you can self-manage with confidence.
Bonds can feel like the last line of defence if something goes wrong. It’s natural to worry about unpaid rent, damage, cleaning, gardening, or even abandonment and easy to assume that many tenancies end in disputes.
In reality, most bonds are refunded either in full or by agreement. Only a small percentage end up in a tribunal or court decision. Understanding how this plays out state by state can help you feel more confident and make better-informed decisions about tenant screening, condition reports, and when to pursue a claim versus when to negotiate.
10 Interesting Facts About Rental Bonds and Claims
Here are some data points from major Australian rental markets that help bust some common myths about how bonds actually work. Note that these are based on states where detailed data is available.
1. Most bond refunds are agreed upon without any dispute
In states that publish detailed figures, the majority of bond refunds are processed through an agreement between landlord and tenant. For example, in Victoria in 2023–24, about 95% of bond repayments were finalised by mutual agreement, with only around 5% needing VCAT or court intervention.
2. Only a small percentage of bonds reach a tribunal decision
Tribunals such as NCAT and VCAT deal with only a small share of total bond matters. In NSW in 2023–24, just 1.6% of bond refunds followed an NCAT order after a dispute, with a further 0.9% refunded after an NCAT application was withdrawn. The rest were either agreed or resolved without a hearing
3. Most renters receive all or most of their bond back
Looking at Queensland and Victoria, renters typically receive a large portion of their bond at the end of a tenancy. In Queensland in 2023–24, tenants and residents were refunded an average of 74.7% of their bond value, and 57.2% received a full bond refund. In Victoria, 64% of repaid bonds in 2023–24 were returned in full to renters.
4. Full bond claims in favour of the landlord are the exception, not the norm
Data from Victoria also shows that only 10% of bonds repaid in 2023–24 were paid in full to rental providers. The rest were either returned entirely to renters or split between both parties, which suggests that full forfeiture is not the standard outcome in most tenancies.
5. Partial claims are more common than full claims
Across the bigger states, partial deductions are a key feature of bond outcomes. In Victoria, 26% of bond repayments in 2023–24 were shared between renters and rental providers, compared with 10% that went entirely to providers. This pattern supports the idea that many claims involve only part of the bond rather than an all-or-nothing scenario.
6. Cleaning and damage consistently top the list of claim reasons
Where reasons for claims are reported, cleaning and property damage appear at the top. Queensland’s RTA Annual Report 2023–24 shows the top five reasons for bond claims were cleaning (21.4%), rent (18.1%), repairs (15.5%), water charges (13.3%), and re-letting costs (5.2%).
7. Most disputes are resolved through negotiation or conciliation, not courtrooms
Regulators across several states encourage parties to talk first and use free dispute services before going near a hearing. Queensland’s RTA offers a free dispute resolution teleconference service to help landlords and tenants reach an agreement outside of QCAT, while guidance from QSTARS explains that RTA conciliation is a standard step before the tribunal.
In South Australia and Victoria, Consumer and Business Services and the Residential Tenancies Bond Authority also promote conciliation and bond dispute resolution services before matters escalate to SACAT or a formal hearing.
8. Bond turnover each year is only a fraction of the total bonds held
Not every bond is refunded in a given year because many tenancies continue. In NSW, there were 968,350 residential rental bonds held as at 30 June 2024, with 323,026 new bonds lodged and 316,200 bonds refunded during 2023–24. That means roughly one-third of bonds turned over, while the rest remained in place for ongoing tenancies.
9. The share of bond value returned to tenants is often high, even where claims occur
Queensland’s data over several years shows a consistent pattern. In 2020–21, 74.2% of total bond money by value was returned to tenants, and in 2023–24, tenants and residents were refunded an average of 74.7% of their bond. Similar trends appear in more recent reporting, with average refunds remaining above 74%.
10. Risk perceptions are often higher than the data suggests
Because bonds sit at the centre of emotionally charged situations, landlords commonly overestimate the likelihood that a bond will be fully claimed or end up in a tribunal fight. In practice, detailed state reports show that most refunds are agreed, most renters get all or most of their bond back, and only a small proportion of cases require a tribunal order.
At the same time, national programs like the ATO’s rental bond data-matching scheme highlight that bond authorities across all states and territories hold large volumes of data, which can be used to keep improving transparency about how bonds are actually used.
Read more: Making a Claim for the Bond
How Do Rental Bond Claims Differ Across Australia?
Below is a state-by-state breakdown of how bond claims, refunds and disputes play out across the country, based on the latest publicly available data.
New South Wales (NSW)
New South Wales has the largest rental bond system in the country, holding 968,350 residential bonds as at 30 June 2024. In the 2023 to 2024 year, around one-third of bonds were turned over, with 323,026 new lodgements and 316,200 refunds processed. The majority of these outcomes were smooth and cooperative, with 70.2% of bond refunds finalised by agreement between landlord and tenant.
Only a very small share escalated to formal dispute, with just 1.6% of refunds made following an NCAT order and another 0.9% refunded after an NCAT application was withdrawn.
Victoria (VIC)
Victoria’s bond data paints an equally reassuring picture for landlords. In 2023 to 2024, 64% of all repaid bonds were returned in full to renters, while 10% were paid entirely to rental providers and 26% were shared between both parties.
Importantly, 95% of all bond claims were processed through agreement rather than dispute, with only 5% requiring a VCAT or court direction. Victoria has also tightened evidence requirements for deductions, meaning rental providers must supply photos, invoices, or receipts to justify their claims.
Queensland (QLD)
Queensland’s RTA publishes clear data showing how bond refunds typically unfold. In 2023 to 2024, tenants and residents received an average of 74.7% of their bond back, and 57.2% of renters received a full refund with no deductions at all. Where deductions do occur, they usually relate to cleaning, rent arrears, repairs, water charges, or re-letting costs, which align with national patterns.
Queensland strongly encourages conciliation before parties head to QCAT, offering a free dispute resolution service that helps landlords and tenants reach practical, low-stress agreements.
Western Australia (WA)
Western Australia does not release detailed annual data on how bond refunds are split between landlords and tenants, so figures like monthly forfeiture amounts cannot be verified. What is clear from industry and regulator guidance is that most WA bond disputes relate to cleaning, repairs, and rent arrears, similar to the rest of Australia.
South Australia (SA)
South Australia also does not publish detailed percentages for agreed versus disputed bond refunds, but its guidance emphasises resolving disagreements early. Consumer and Business Services encourages landlords and tenants to negotiate directly, exchange counter-offers, and use conciliation before escalating a matter to SACAT.
ACT, Tasmania, and Northern Territory (ACT, TAS, NT)
The ACT, Tasmania, and Northern Territory do not release detailed annual data on how bond refunds are split, but their tenancy frameworks follow the same core principles found nationwide. Bonds must be held independently.
Evidence such as photos or invoices must accompany any deductions. If the tenant disagrees with a proposed deduction, they can seek review or take the matter to the relevant local tribunal. Even without granular statistics, the guidance from these jurisdictions strongly supports the idea that disputes should be resolved informally where possible, and that clear records remain a landlord’s best protection.
What Does This Mean For Self-Managing Landlords?
The data across Australia shows a consistent pattern that should reassure self-managing landlords. Most tenancies end without conflict, most bond refunds are agreed, and only a small share ever reaches a tribunal. Even where deductions occur, they are usually about cleaning or documentation, not major disputes.
For self-managers, this means the biggest influence on bond outcomes is the quality of your process. You can prevent most issues by staying organised throughout the tenancy. The essentials are:
- Strong condition reports at entry and exit with clear photos
- Consistent communication with tenants about expectations
- Organised records of rent, maintenance, and conversations
- Evidence-based decisions for any deductions you plan to make
When these foundations are in place, the bond functions as it should: a fair safeguard rather than a source of stress, and a smooth end-of-tenancy outcome becomes much more predictable.
Read more: What Are the Legal Responsibilities for Self-Managed Landlords?
How RentBetter Can Help You Manage Bonds With Clarity and Confidence
Bond management is far easier when everything lives in one place. RentBetter gives self-managing landlords a clear structure and up-to-date records, from digital condition reports, secure document storage, and organised communication. When it is time to finalise the bond, every detail is already captured and easy to reference.
