NT Rental Bond Interest — Who Keeps It?

How Section 114 Splits Bond Interest

Most Australian states pool rental bonds into a central government authority, and interest earnings fund tenant advocacy or housing programs. The Northern Territory works differently. There is no central bond board. Private landlords hold the bond themselves in an Authorised Deposit-taking Institution (ADI) trust account under Section 29 of the Residential Tenancies Act 1999, so any interest that accrues sits in their account.

Section 114 of the Act sets three rules for that interest:

1. If the tenancy agreement names who gets the interest, that person keeps it. Either party can negotiate this clause before signing.
2. If the agreement says nothing about interest, the money goes to whoever receives the larger share of the bond at the end of the tenancy. If the landlord deducts $400 from a $1,800 bond and refunds $1,400, the tenant gets the accrued interest. If the landlord lawfully retains the majority, the landlord keeps it.
3. Agent-held bonds follow a separate track. When a licensed real estate agent holds the bond in a statutory trust account under Section 50 of the Agents Licensing Act 1979, interest earned is retained under the professional licensing regime. Neither the landlord nor the tenant receives it.

What This Means in Practice

Interest on a $2,000 bond depends on the account's rate and how long it is held. The legal obligation is real: you cannot quietly absorb the interest if the tenancy agreement does not assign it to you.

If you self-manage and want to keep things simple, address interest in the tenancy agreement before the lease starts. A single clause stating that accrued interest will be paid to the tenant (or retained by the landlord as a contribution toward account-keeping fees) removes ambiguity when the tenancy ends.

Record-Keeping for the ATO

The ATO's Rental Bond Data-Matching Program cross-references bond and rental income records across jurisdictions. Keep bank statements showing the trust account balance, interest credited, and the amount paid out at lease end. The ATO expects rental property records to be retained for at least five years from the date you lodge the relevant tax return.

One Clause Prevents the Argument

Bond interest disputes are rare at NTCAT — the sums are small — but they add friction to an already tense bond-return conversation. A clear clause in the tenancy agreement, a dedicated ADI account, and a year-end bank statement are all it takes.

For the full bond lifecycle — from calculating the four-week cap through the 7-business-day exit clock — the NT Rental Bond Guide walks you through every step.

See more Northern Territory guides →