How to Return a Rental Bond to Your Tenant in WA

The Streamlined Release Process

Western Australia overhauled its bond release system as part of the 2024–2026 tenancy reforms. The old approach — a paper Joint Application for Disposal that every party had to hand-sign — is being phased out. The new process works through the Security Bond Release Application, which either party can initiate.

Here's the sequence:

1. Initiate the application. After the tenant vacates and returns all keys, either the landlord or the tenant submits a Security Bond Release Application through BondsOnline or on paper. The application specifies how the bond should be divided — full refund to tenant, full payment to landlord, or a split.

2. Categorise any deductions. If you're claiming part of the bond, you must categorise each deduction under specific headings: unpaid rent, property damage, cleaning, water consumption, or other permitted costs. Upload supporting evidence — repair quotes, invoices, the comparative Form 1 Property Condition Report, and date-stamped photographs.

3. The other party gets 14 days. The Bond Administrator sends a formal notice to everyone listed on the bond who didn't sign the application. They have 14 calendar days to respond.

4. Agreement or default. If all parties agree to the proposed split, the Bond Administrator pays out electronically. If the non-applying party doesn't respond within 14 days, the application processes automatically as submitted.

5. Dispute referral. If any party objects within the 14-day window, the disputed portion goes to the Commissioner for Consumer Protection for a binding determination.

What You Can Deduct

Bond deductions must be for quantifiable financial losses caused by the tenant breaching the agreement. The permitted categories are:

• Unpaid rent or outstanding water charges
• Property damage exceeding fair wear and tear — backed by Form 1 comparison
• Cleaning costs — to restore the property to the cleanliness documented at move-in
• Missing items or unreturned keys — replacement costs
• Pet-related damage — cleaning, fumigation, or repair specifically caused by the animal

You cannot deduct for fair wear and tear — the gradual deterioration that comes from normal living. Flattened carpet in a hallway after two years, slight paint fading from sun exposure, or minor scuffs near doorways are all normal use.

Depreciation Matters

When calculating a deduction, you must account for the age of whatever was damaged. A landlord cannot replace a seven-year-old carpet with a brand-new one and charge the full cost to the tenant — that's betterment, and it's not allowed.

The formula: replacement cost × (remaining useful life ÷ total expected useful life). A $1,000 carpet with three years left out of a ten-year life means a maximum claim of $300.

The Legacy Form Deadline

The old Joint Application for Disposal of Security Bond forms will only be accepted until 31 December 2026. After that date, all bond releases must use the new Security Bond Release Application form. If you're ending a tenancy soon and plan to use the legacy form, be aware that it still requires every party to sign — and any disagreement under the old process goes straight to the Magistrates Court rather than the Commissioner.

Undisputed Amounts Must Be Released Immediately

If the landlord claims $400 for cleaning but the tenant agrees to $400 and disputes only a $300 wall damage claim, the undisputed portion ($1,400 to the tenant, $400 to the landlord in this example) should be released immediately. Holding the entire bond hostage over a partial dispute is not permitted under WA law.

The Rental Bonds in Western Australia guide includes an exit accounting worksheet and a deduction calculator that walks through the depreciation formula, evidence requirements, and the release application process.

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