Penalty for Late Bond Lodgement in Victoria: What Landlords Risk

You collected the bond on a Friday afternoon, the weekend got busy, and suddenly two weeks have passed. In Victoria, that delay isn't just sloppy administration — it's a statutory offence that can cost you over $31,000.

The 10-Business-Day Rule Under Section 406

Section 406 of the Residential Tenancies Act 1997 requires every rental provider who receives bond money directly from a renter to lodge the full amount with the Residential Tenancies Bond Authority (RTBA) within 10 business days of receipt.

Business days exclude weekends and Victorian public holidays. That means a bond received on a Friday before a long weekend might give you more calendar time than you'd expect.

The 10-business-day deadline applies when you receive bond money directly, whether it arrives by bank transfer, cash, or cheque. Keep a record of the receipt date and lodge in time rather than assuming processing delays change the deadline.

How the Fine Is Calculated

The maximum penalty for a section 406 breach is 150 penalty units. Victoria indexes the value of a penalty unit annually:

• FY 2025–26: $203.51 per unit → maximum fine of $30,526.50
• FY 2026–27: $209.10 per unit → maximum fine of $31,365.00

Those figures represent the maximum court penalty. In practice, CAV may issue administrative infringement notices carrying lower amounts for first-time breaches. But even a discounted fine dwarfs the cost of lodging the bond on time.

What Triggers Enforcement

CAV's Renting Taskforce actively investigates lodgement compliance. Common triggers include:

• A renter lodging a complaint after checking RTBA Online and finding no bond record
• An audit following a separate dispute (condition report disagreement, rent arrears)
• Pattern matching through the ATO's Rental Bond Data-Matching Program, which cross-references RTBA records against tax returns

If a renter contacts CAV about a missing bond, the investigation starts with the lodgement date — and a late lodgement is documented evidence of an offence, regardless of intent.

How to Stay Within the Deadline

Count the 10-business-day period from receipt, skipping weekends and Victorian public holidays. If you are unsure about a date or holiday, lodge earlier rather than relying on a last-day calculation.

Lodge through RTBA Online as an Individual Landlord. The portal timestamps the transaction, so your compliance record is automatic. If the renter elects to pay the RTBA directly (their statutory right), select the direct-payment option when initiating the lodgement — the RTBA issues the renter a payment request, and they must complete it within two business days.

Keep a simple dated record: the date you received the money, the amount, and the RTBA confirmation number. If a dispute arises months later, that record proves you met the deadline.

What If You've Already Missed It

Lodge immediately. A late lodgement is still better than leaving the bond unlodged. Prompt lodgement does not change the missed deadline, so keep accurate records of when you received and lodged the money.

If a renter has already complained, gather your lodgement confirmation and any records showing the delay was administrative rather than deliberate. Independent legal advice is worth seeking if CAV contacts you formally — the guide covers the compliance timeline in detail, but penalty defence sits outside its scope.

The Victoria Rental Bond compliance guide walks through the entire lodgement sequence with a dated ledger so you hit the deadline on the first tenancy and every one after it.

See more Victoria guides →