Cost of living pitch for renters could save $2600 over 10 years

There are calls for renters to pay bond just once in their lifetime under a new cost of living pitch to the federal government.

The McKell Institute is recommending a national portable bond scheme where renters transfer their bond between leases, rather than coming up with a second deposit while the previous bond is being refunded.

Under the proposal, renters would also earn interest on their bond, saving an estimated $2600 over 10 years.

McKell Institute chief executive Edward Cavanough said the policy would relieve significant cost of living pressures in a tough market.

“Renters are under enormous financial strain and the current need to double-up on bonds to move often traps people in unsuitable housing,” Cavanough said.

“We know the ‘Australian dream’ of property ownership is out of sight for many, yet our entire political class remains obsessed with the interests of homeowners.

“Renters are overlooked and treated as a minority or pitied for their inability to achieve homeownership.

“Renters need to be treated seriously with practical reforms that offer them real benefits today while laying the groundwork for long-term change.”

Cavanough is urging the government to take the proposal to an election in which “the vote of renters will be pivotal”.

“If people get an opportunity to move and improve their work, study or living conditions they shouldn’t be held back by our outdated and unnecessary bond system,” he said.