Fair Wear and Tear vs Damage in South Australia Rental Properties

The line between fair wear and tear and tenant-caused damage decides most bond disputes in South Australia. Get it wrong and you either forfeit a legitimate claim or face a SACAT order to return money you should never have withheld.

Under Section 69(3) of the Residential Tenancies Act 1995, the tenant's obligation is to return the property in a reasonable condition and a reasonable state of cleanliness. Not pristine — reasonable.

What Counts as Fair Wear and Tear

These are the natural consequences of a property being lived in, and you cannot claim bond money for them:

• Fading paint and minor scuffs on walls from everyday contact
• Worn carpet pile in high-traffic zones like hallways and living rooms
• Hairline floor scratches from normal furniture movement
• Sun-bleached curtains or faded window treatments
• Minor grout discolouration in wet areas over time
• Garden weed growth from seasonal rains and normal weather
• Aging window seal deterioration from environmental exposure

The common theme: these result from time and use, not from neglect or abuse.

What Counts as Tenant-Caused Damage

These go beyond normal use and are valid grounds for a bond deduction:

• Holes in walls — picture hook holes in plaster are generally wear and tear, but a fist-sized hole in drywall is damage
• Burn marks on benchtops, carpets, or floors
• Broken glass in windows or doors
• Gouged or deeply scratched floorboards beyond surface wear
• Grease build-up and food debris left in ovens, range hoods, or on kitchen surfaces
• Missing fixtures, appliances, or unreturned keys
• Trash or personal belongings left on the premises requiring removal

Depreciation: You Cannot Claim New-for-Old

Even for genuine damage, you cannot claim the full replacement cost. SACAT applies standard ATO asset depreciation schedules to determine residual value. If an 8-year-old carpet with a 10-year useful life is destroyed by the tenant, you can recover approximately 20% of the replacement cost — not the price of brand-new carpet. Claiming full replacement constitutes impermissible betterment.

This catches many landlords off guard. A $4,000 carpet replacement might yield a legitimate claim of $800 if the carpet was already near the end of its useful life.

The Condition Report Is Everything

Your ability to argue damage versus wear and tear depends almost entirely on the Regulation 4 Inspection Sheet completed at move-in. A pristine move-in report contrasted with specific documented damage at exit is strong evidence. A vague or incomplete move-in report — or none at all — gives SACAT nothing to compare against, and claims are routinely dismissed.

Time-stamped photographs at both ends of the tenancy are the practical complement to the inspection sheet. Together, they form the evidence base that separates a successful bond claim from a rejected one.

The SA Rental Bond Guide covers the full claim process from exit inspection to evidence bundling, including how to calculate depreciation-adjusted amounts that hold up at SACAT.

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