Australian renters are facing significant challenges as rents reach record highs and the cost of living surges, making housing increasingly unaffordable.
In response to this crisis, the McKell Institute, a think tank that collaborates with leading academics, industry, and policy experts from top Australian universities, has proposed a novel solution aimed at relieving renters’ financial burdens associated with moving.
Their proposal suggests limiting renters to paying just one bond throughout their renting life.
Furthermore, they advocate for the interest accrued on the bond to be returned to renters rather than retained by bond authorities or landlords.
This approach could potentially generate significant financial relief for renters, serving as a safety net during times of economic hardship.
If implemented, this initiative could alleviate the financial stress experienced by countless renters struggling to balance their budgets.
For renters already struggling financially, the process of moving between properties often involves paying a second rental bond before the previous bond is refunded.
This financial strain can be overwhelming as not all renters have the resources to cover such upfront costs.
This situation can exacerbate financial pressures on renters, who face additional expenses like moving belongings and furnishings, along with other transition-related costs.
Over the past five years, the national weekly median rent has surged by 48%, from $420 to $620, forcing renters to spend an additional $200 per week on average.