Bond Deductions in South Australia — What Landlords Can and Can't Claim

Knowing what you can legally deduct from a bond in South Australia — and what you definitely cannot — is the difference between a clean claim through CBS and one that gets thrown out at SACAT. The rules come from Section 69(3) of the Residential Tenancies Act 1995 and the way CBS and the tribunal interpret "reasonable condition" and "reasonable state of cleanliness."

What You Can Deduct

Bond deductions are limited to quantifiable financial losses caused by the tenant's breach or neglect. The main categories:

Unpaid rent and utility arrears. If the tenant owes rent or unpaid water charges that they're legally responsible for under the lease, you can claim those amounts from the bond.

Tenant-caused damage. Broken windows, holes punched in drywall, burn marks on benchtops, gouged floorboards — damage that goes beyond normal use. The key test is whether the damage existed at move-in (check the Regulation 4 inspection sheet) and whether it's attributable to the tenant rather than to age or normal use.

Inadequate cleanliness. The tenant's obligation is to leave the property in a "reasonable state of cleanliness." Food debris left behind, grease build-up in ovens, rubbish requiring contractor removal — these are legitimate cleaning deductions. You don't need it to be spotless, but it needs to be reasonable.

Missing fixtures and unreturned keys. Costs to replace unreturned keys, access fobs, or missing appliances that were present at move-in (and documented on the inspection sheet) are claimable.

What You Cannot Deduct

Fair wear and tear. This is where most invalid claims fall apart. The following are not tenant damage:

• Fading paint on walls
• Worn carpet pile in high-traffic zones (hallways, lounge entries)
• Minor wall scuffs and hairline floor scratches
• Aging window seals and minor grout discoloration
• Sun-bleached curtains
• Minor garden weed growth from seasonal rain
• External dust build-up

These are the natural consequences of someone living in a property. CBS and SACAT reject these claims consistently, regardless of how the property looks compared to your memory of it.

Pre-existing defects. Anything already noted on the move-in inspection sheet — structural cracks, existing water stains, dampness — cannot be deducted from the bond. This is why a thorough condition report at the start is so important.

The Depreciation Rule

You cannot claim full replacement cost for damaged items. This is called "betterment" and SACAT does not allow it. Instead, you claim the residual value based on standard ATO depreciation schedules.

The calculation works like this: if a carpet has a 10-year useful life and the tenant damages it after 8 years, the carpet has 20% of its value remaining. You can claim 20% of the replacement cost, not the full price of new carpet.

This applies to everything — blinds, appliances, floor coverings, curtains. The older the item, the less you can claim. Keep records of when major items were installed so you can support your depreciation calculations if challenged.

Carpet Cleaning — the Pet Exception

General lease clauses requiring professional carpet cleaning at end of tenancy are largely unenforceable under Section 69(3), as long as the tenant leaves carpets in a reasonable condition. You can't insist on professional cleaning when regular vacuuming would have been enough.

The exception: pets. Under Section 66C(9)(c), enacted 1 July 2024, if you approved a tenant to keep a pet inside the premises, you can lawfully require professional carpet cleaning as a condition of that pet approval. This is one of the few enforceable end-of-lease cleaning conditions in SA.

How to Structure a Deduction Claim

Submit your claim through RBO with itemised evidence for each deduction:

• Move-in and exit inspection sheets — side by side, showing condition change
• Time-stamped photographs — same rooms, same angles, at move-in and move-out
• Tax invoices or detailed quotes — from tradespeople, not your own estimate
• Depreciation calculation — showing the item's age, useful life, and residual value

If the tenant accepts the claim, CBS pays out. If they dispute it, the evidence you've prepared is exactly what SACAT will ask to see.

If your total losses exceed the bond amount, claim the entire bond through CBS first, then apply to SACAT under Section 110 for a monetary order covering the excess.

The SA Rental Bond Guide includes a Refund and SACAT Evidence Checklist designed for structuring deduction claims — each item documented with the section reference, the evidence type CBS expects, and the depreciation method SACAT applies.

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