Part 10—Bonds and the Residential Tenancies Bond Authority

Division 1—Interpretation

404 Definitions

In this Part—

amount of bond includes a partial or full amount of a bond in relation to—

(a) an initial amount of bond paid by a renter at the commencement of a residential rental agreement; and (b) subsequent amounts of bond paid by a renter in relation to modifications of the rented premises (if any); and (c) additional amounts of bond required to be paid at agreed intervals under a residential rental agreement in the standard form for a fixed term of more than 5 years (if any);

bond in Divisions 3 and 4, includes an amount or the total of the amounts (if any) which are required to be added to the bond pursuant to section 439;

bond lodgment form means a form completed and signed by a residential rental provider and renter in accordance with section 405 for the purposes of lodgment of an amount of bond;

bond substitution form means a form completed and signed by a renter in accordance with section 410B for the purposes of lodgment of a substitute bond under that section;

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Homes Victoria voucher means a voucher issued by Homes Victoria or an agent of Homes Victoria for payment of an amount of bond on behalf of a renter or site tenant;

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rent includes hiring charge;

rented premises includes room, site, caravan and Part 4A site;

renter includes—

(a) a resident; and (b) a site tenant; and (c) in Divisions 3 and 4, a former renter, a former resident and a former site tenant;

residential rental agreement includes a residency right and a site agreement;

residential rental provider includes—

(a) a rooming house operator; (b) a caravan park owner; (c) a caravan owner; (d) a site owner; (e) in Divisions 3 and 4, a former residential rental provider, a former rooming house operator, a former caravan park owner, a former caravan owner and a former site owner; (f) an agent of a residential rental provider or a person referred to in paragraphs (a) to (d).

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Division 2—Payment of bonds to Residential Tenancies Bond Authority

405 Bond lodgment form

(1) A residential rental provider who receives an amount of bond from a renter must at the time the amount of bond is paid—

(a) complete and sign a bond lodgment form in the form approved by the Authority for the type of bond being lodged; and

(b) give the form to the renter to sign.

Penalty: 25 penalty units.

(2) If Homes Victoria or an agent of Homes Victoria has paid an amount of bond on behalf of the renter, the bond lodgment form must state that fact.

(3) The renter must sign the completed bond lodgment form on payment of the amount of bond.

(4) On the signing by the renter of the bond lodgment form, the residential rental provider must give a copy of that form to the renter.

Penalty: 25 penalty units.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

406 Duty to pay bond to Authority

If a residential rental provider receives an amount of bond from a renter, the residential rental provider must, within 10 business days after the amount of bond is received, give the amount of bond to the Authority together with the completed bond lodgment form.

Penalty: 150 penalty units.

407 Receipt for bond

(1) The Authority, within 7 days after receiving an amount of bond from a residential rental provider, must give a receipt containing the prescribed information to—

(a) the residential rental provider; and

(b) the renter who paid the amount of bond; and

(c) if an amount of bond was paid on behalf of the renter by Homes Victoria or an agent of Homes Victoria, Homes Victoria.

(2) The receipt may be given in the manner determined by the Authority.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

408 Bond held on trust

A residential rental provider who receives an amount of bond from a renter holds the amount of bond on trust for the renter until the amount of bond is paid to the Authority.

409 What if the residential rental provider is late in lodging the bond?

(1) A renter may notify the Authority if the renter does not receive a receipt from the Authority within 15 business days after giving the amount of bond to the residential rental provider.

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410 Payment of bond into Residential Bonds Account

The Authority must pay all money it receives under this Division into the Residential Bonds Account.

410A Payment of bond in prescribed manner and form

For the purposes of this Division, a residential rental provider receives an amount of bond from a renter if the renter gives the residential rental provider the amount of bond in the prescribed manner and form.

410B Payment of substitute bond

(1) A renter under a residential rental agreement may substitute an amount of bond paid by the renter and held by the Authority in relation to that residential rental agreement with an equivalent amount of bond paid on behalf of the renter by Homes Victoria or an agent of Homes Victoria (whether in the form of a Homes Victoria voucher or otherwise).

(2) For the purposes of subsection (1), a renter must—

(a) complete and sign a bond substitution form containing the prescribed information; and

(b) give the substitute bond to the Authority, in the form approved by the Authority, together with the completed bond substitution form.

(3) The Authority, within 7 days after receiving a substitute bond, must give a receipt to—

(a) the residential rental provider under the residential rental agreement; and

(b) the renter; and

(c) Homes Victoria.

(4) A receipt under subsection (3) must—

(a) confirm that a bond substitution has been effected; and (b) specify the amount of bond substituted; and (c) contain the prescribed information.

(5) The receipt may be given in the manner determined by the Authority.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

Division 3—Repayment of bonds

411 Claims for rental bonds

(1) A claim may be made to the Authority for the repayment of a bond by—

(a) a renter or that person's agent—

(i) for repayment of the bond to the renter; or (ii) for repayment of the bond to the residential rental provider; or (iii) for apportionment of the bond as repayments to the renter and the residential rental provider; or

(b) the residential rental provider or that person's agent for repayment of the bond to the renter; or (c) jointly by a residential rental provider and a renter (or either of those person's agents)—

(i) for repayment of the bond to the renter; or (ii) for repayment of the bond to the residential rental provider; or (iii) for apportionment of the bond as repayments to the renter and the residential rental provider.

(2) A claim must—

(a) be in a form approved by the Authority; and (b) include the address or email address of the claimant.

(3) A claim must not be made before the termination of a residential rental agreement unless—

(a) it is made jointly by or on behalf of the residential rental provider and all of the renters; or (b) it is made by or on behalf of the residential rental provider and directs that the bond be paid to all of the renters; or (c) it is made by or on behalf of all of the renters and directs that the bond be paid to the residential rental provider.

(4) If a claim is made under subsection (1)(c) for an amount of bond to be repaid to the residential rental provider, the claim form must be signed by the renters no earlier than 14 days before the termination date of the residential rental agreement. (5) A residential rental provider must not request or obtain a renter's signature to a claim form under this section if the claim form does not specify—

(a) the amount of bond to be refunded; and (b) the apportionment (if any) of that amount of bond.

Penalty: 60 penalty units.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

411A Notice of claim to be given to other parties

(a) may be addressed to one or more parties to the residential rental agreement; and

(b) must be given to Homes Victoria if the whole or part of the bond was paid by Homes Victoria; and (c) must state that the Authority will pay the claim unless within 14 days after receiving notice under subsection (2) the party to the residential rental agreement gives written notice to the Authority that the claim is subject to an application to the Tribunal.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

411AB Matters that may be subject of bond claim

(1) Without limiting the matters for which a residential rental provider may claim from a bond, a residential rental provider is entitled to claim an amount of bond for the following—

(a) the reasonable cost of repairs to, or the restoration of, the rented premises or goods leased with the premises, as a result of damage caused by the renter or a renter's visitor, taking into account fair wear and tear; (b) any rent or other charges owing and payable under the residential rental agreement or this Act; (c) the reasonable cost of cleaning any part of the premises, if the premises were not left reasonably clean by the renter, having regard to the condition of the premises at the commencement of the residential rental agreement; (d) the reasonable cost of replacing locks or other security devices altered, removed or installed by the renter without the consent of the residential rental provider; (e) any other prescribed matter.

(2) A residential rental provider is not entitled to claim an amount of bond for an amount owing or payable to the residential rental provider under an agreement referred to in section 53AA.

411AC Repayment of bond where no dispute

The Authority must repay the amount of bond if—

(a) the claim is made under section 411(1)(c); or (b) the claim is made by the residential rental provider or that person's agent under section 411(1)(b) for repayment of the bond to the renter; or (c) the claim is made by the renter or the renter's agent and directs the repayment of an amount to the residential rental provider; or (d) one or more of the following apply—

(i) the claim is made by the renter or the agent of the renter; (ii) the claim is for payment to the party who made the claim or on whose behalf the claim was made; (iii) no party to the residential rental agreement has notified the Authority of an application within 14 days after notice is given under section 411A(2).

411AD Disputed bond claims

(1) This section applies if the Authority is given notice, in a form approved by the Authority, by a party to a residential rental agreement that a claim for the repayment of bond is the subject of an application to the Tribunal. (2) The Authority may repay the amount of bond if—

(a) the party who disputes the claim has given the Authority written notice of the party's consent to the repayment of the bond; or (b) any applicable order of the Tribunal requiring action before the repayment of the bond has been satisfied; or (c) the Authority is notified by the Tribunal that the application has been withdrawn or dismissed.

(3) The Authority must not repay an amount of a claim until any proceeding affecting a claim is finally determined, including any appeal.

411AE Repayment of bond to other persons

If directed to do so by a person to whom a bond is payable, the Authority may repay the whole or part of an amount of the bond to another person.

411B Repayment out of Homes Victoria bonds generally

(1) This section applies if—

(a) the Authority holds an amount of bond paid by Homes Victoria or an agent of Homes Victoria on behalf of a renter; and

(b) the Authority receives a new amount of bond in relation to a residential rental agreement—

(i) for the same premises to which the amount of bond referred to in paragraph (a) relates; and

(ii) from or on behalf of a renter other than the renter referred to in paragraph (a); and

(c) no application for a refund of the amount of bond referred to in paragraph (a) is made in accordance with section 413(1) within 12 months of the date on which the Authority receives the new bond referred to in paragraph (b).

(2) The Authority may pay to Homes Victoria the amount of bond referred to in subsection (1)(a).

(3) After the Authority pays an amount under subsection (2), if the Authority holds a remaining amount of bond in relation to the residential rental agreement for which the amount of bond referred to in subsection (1)(a) was paid, the Authority may pay to the renter the remaining amount of bond.

(4) Homes Victoria must return an amount of bond received under subsection (2) to the Authority if, after receipt of the amount, the Tribunal makes an order requiring the Authority to repay the bond to a person other than Homes Victoria.

411C Refund of amount of substitute bond

If the Authority receives a substitute bond under section 410B, the Authority must pay to the renter under the residential rental agreement to which the substitute bond relates the amount of bond held by the Authority that the substitute bond replaces.

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413 Payment to Homes Victoria

(1) The Authority must pay an amount of bond to Homes Victoria if the residential rental provider under the residential rental agreement in respect of which the amount of bond was paid applies to the Authority for payment of that amount to Homes Victoria.

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(2) The application must be made in a form and manner approved by the Authority.

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419A Person with interest in claim for bond may apply to Tribunal for bond repayment order

(1) A residential rental provider, renter or any other person who has an interest in a claim for a bond (including a previous co-renter under the residential rental agreement) may apply to the Tribunal for an order requiring the Authority to repay the bond. (2) An application under subsection (1) must be made within 14 days after the residential rental agreement has terminated. (3) On an application under subsection (1), the Tribunal may make an order requiring the repayment of the bond by the Authority to any party for an amount that does not exceed the amount of bond held by the Authority.

420 Determination by Tribunal

The Tribunal must determine any application made to it under section 419A.

420A Order by Tribunal if renter victim of family violence or personal violence

(1) This section applies if—

(a) the Tribunal is hearing an application for the repayment of bond; and (b) there is more than one renter under a residential rental agreement; and (c) the Tribunal is satisfied, having regard to any matter it considers appropriate, that one of the renters is a victim of family violence or personal violence.

(2) For the purpose of subsection (1)(c), an applicant is not required to prove that a person has been convicted of an offence or is subject to a family violence safety notice, family violence intervention order, recognised non-local DVO or personal safety intervention order. (3) If satisfied that one of the renters is a victim of family violence or personal violence, the Tribunal may order that—

(a) liability is apportioned between renters, including making a renter who committed the family violence or personal violence liable for all of the residential rental provider's loss and damage including any unpaid rent (if any); and (b) the portion of the bond paid by the renter who experienced family violence or personal violence is excluded from bond available to compensate the residential rental provider for loss and damage (if any).

420B Order by Tribunal in circumstances of family violence or personal violence

(1) This section applies if—

(a) the Tribunal is hearing an application for the repayment of bond; and (b) a renter under the residential rental agreement is or has been a victim of family violence or personal violence; and (c) the alleged perpetrator of the family violence or personal violence is not a renter under the residential rental agreement.

(2) The Tribunal may order that the victim of family violence or personal violence referred to in subsection (1) is not liable for any loss or damage suffered by the residential rental provider under the residential rental agreement if satisfied that—

(a) the loss or damage was caused by the actions of the alleged perpetrator of the family violence or personal violence; and (b) a family violence safety notice, family violence intervention order, recognised non‑local DVO or personal safety intervention order is in force.

420C Tribunal may order Authority to disclose personal information of renter

(1) The Tribunal may order the Authority to disclose to the residential rental provider, for a purpose referred to in subsection (2), any of the following information about a renter—

(a) the person's email address; (b) the person's residential address; (c) the person's facsimile number.

(2) The purpose for which the Tribunal may disclose personal information under subsection (1) is to facilitate a residential rental provider serving any document on a renter. (3) A person must not disclose or use any personal information of a renter disclosed under this section for a purpose other than contacting the renter for a purpose referred to in this Act.

Penalty: 60 penalty units.

420D Order by Tribunal if renter who is SDA resident is coerced etc.

If, on an application made to the Tribunal by a renter who is an SDA resident under section 91YA, the Tribunal makes an order in accordance with section 91YB(4), the Authority must pay out the bond to the renter or renters (as appropriate) in accordance with the order of the Tribunal.

421 Bond paid by Homes Victoria

(1) Homes Victoria is a party to any proceeding before the Tribunal in relation to an amount of bond which was paid on behalf of a renter by Homes Victoria or an agent of Homes Victoria.

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(3) The Authority must pay to Homes Victoria or an agent of Homes Victoria and not to the renter any amount of bond to which the renter is entitled under this Part if—

(a) the bond lodgment form or bond substitution form states that the amount of bond was paid on behalf of the renter by Homes Victoria or an agent of Homes Victoria; or

(b) Homes Victoria advises the Authority in writing that the amount of bond was paid on behalf of a renter by Homes Victoria or an agent of Homes Victoria.

422 Unclaimed money

If the Authority is required under this Part to pay to a person the amount or part of the amount of a bond but is unable to do so because the whereabouts of the person are unknown to the Authority, the amount or part must be dealt with as unclaimed money in accordance with Part 3 of the Unclaimed Money Act 2008 as if the Authority were a business to which that Part applies.

423 Prohibition of claims

(1) No further claim lies against the Authority, the Residential Bonds Account or the Residential Bonds Investment Income Account in respect of an amount of bond once the Authority has in good faith and in accordance with this Part paid that amount out of those Accounts.

(2) Despite subsection (1), the Authority may in its absolute discretion, pay as compensation to a person an amount not exceeding the amount of bond paid out if the Authority is satisfied that the person would have been entitled to a refund if the amount of bond had not been paid out to another person on the fraudulent application of that other person.

Division 4—General provisions relating to bonds

424 Notification of assignment or transfer by residential rental provider

(1) If a residential rental provider assigns or transfers the residential rental provider's rights and duties under a residential rental agreement to another person, the residential rental provider and the person to whom the rights and duties are assigned or transferred must notify the Authority in accordance with this section of that assignment or transfer if an amount of bond has been paid in relation to the residential rental agreement.

Penalty: 60 penalty units.

(2) A notification under subsection (1) must—

(a) be in a form approved by the Authority; and

(b) be signed by the residential rental provider and the person to whom the rights and duties are assigned or transferred; and (c) be given to the Authority within 5 days after the assignment or transfer takes effect.

(3) The residential rental provider must give the renter a copy of the notice under subsection (1).

Penalty: 60 penalty units.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

425 Notice of assignment or transfer by renter

(1) If a renter assigns or transfers any of the renter's rights and duties under a residential rental agreement to another person, the residential rental provider and the renter and the person to whom the rights and duties are assigned or transferred must notify the Authority in accordance with this section of that assignment or transfer if an amount of bond has been paid in respect of the residential rental agreement.

Penalty: 60 penalty units.

(2) A notice under subsection (1) must—

(a) be in a form approved by the Authority; and

(b) be signed by the renter, the residential rental provider and the person to whom the rights and duties are assigned or transferred; and (c) be given to the Authority within 5 days after the assignment or transfer takes effect.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

426 Agent to produce authorisation on request

An agent for a residential rental provider must, at the request of the Authority, produce evidence of the agent's authorisation to act as agent under this Part.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

427 Authority to record names

(1) The Authority must register—

(a) the name of each residential rental provider and renter who appears on the bond lodgment form for an amount of bond; and

(ab) in the case of a bond lodgment form or bond substitution form that states that the amount of bond has been paid by Homes Victoria or an agent of Homes Victoria on behalf of a renter—

(i) the fact that the amount of bond has been so paid; and (ii) the amount of bond that has been so paid; and

(iii) if applicable, the amount of bond that has been refunded to the renter under section 411C; and

(b) the name of each assignee or transferee of whom the Authority is given notice under section 424 or 425.

(2) The Authority must not repay an amount of bond to any person unless the name of that person is registered under subsection (1), except—

(a) in the prescribed circumstances; or (b) in accordance with an order of the Tribunal.

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

428 Renter must not use bond as rent

A renter must not refuse to pay rent on the ground that the renter intends to regard as rent paid by the renter the bond or any part of the bond paid in respect of the rented premises.

Penalty: 60 penalty units.

Division 5—Residential Tenancies Bond Authority

429 Establishment of Authority

(1) There is established a Residential Tenancies Bond Authority. (2) The Authority—

(a) is a body corporate with perpetual succession; (b) shall have an official seal; (c) may acquire, hold and dispose of real and personal property; (d) may sue and be sued in its corporate name; (e) may do and suffer all acts and things that bodies corporate may by law do and suffer.

(3) The official seal of the Authority must be kept in the custody that the Authority directs and must not be used except as authorised by the Authority. (4) All courts must take judicial notice of the official seal of the Authority on a document and must presume that it was properly sealed.

430 Constitution of Authority

The Authority is constituted by the Director.

431 Functions of Authority

The functions of the Authority are—

(a) to collect and disburse bond money paid to the Authority under this Act; (b) to establish and administer—

(i) a Residential Bonds Account; and (ii) a Residential Bonds Investment Income Account;

(c) to invest money held in those Accounts in accordance with this Act;

(ca) to collect the information contained in bond lodgment forms and bond substitution forms given to the Authority and other information kept by the Authority in relation to bonds (including substitute bonds under section 410B) held by the Authority;

(cb) to disclose the information (other than persons' names) referred to in paragraph (ca), whether it was collected before, on or after the commencement of section 16 of the Residential Tenancies (Amendment) Act 2003, to Homes Victoria for the purpose of the use of that information by Homes Victoria in research, compiling statistics and public education;

(cc) to disclose the information (including names of persons) referred to in paragraph (ca) to the Director, for the purpose of the Director carrying out any function under this Act, whether that information was collected before, on or after the commencement of this paragraph.

(d) to carry out any other function conferred on it by this Act.

432 Powers of Authority

(1) The Authority has power to do anything that is necessary or convenient to be done for or in connection with the carrying out of its functions. (2) Without limiting subsection (1), the Authority may enter into any arrangements or agreements with any person or body to act as its agent in the carrying out of any of its functions under this Part except its powers under sections 423(2) and 437.

433 Authority subject to Minister's general direction and control

The Authority is subject to the general direction and control of the Minister in carrying out its powers and functions.

434 Delegation

The Authority may, by instrument, delegate to any employee of the public service any of its powers or functions, except this power of delegation and its powers under sections 423(2) and 437.

Division 6—Bond Accounts

435 Residential Bonds Account

(1) The Authority must establish an account to be called the Residential Bonds Account. (2) There must be paid into the Residential Bonds Account all amounts of bond received by the Authority under this Act. (3) The Authority must pay out of the Residential Bonds Account all amounts of bond—

(a) authorised by or under this Act to be paid out of the Residential Bonds Account; or (b) directed by the Tribunal or a court to be paid out of the Residential Bonds Account.

436 Residential Bonds Investment Income Account

(1) The Authority must establish an account to be called the Residential Bonds Investment Income Account. (2) There must be paid into the Residential Bonds Investment Income Account any amount of interest received on the investment of the Residential Bonds Account and the Residential Bonds Investment Income Account.

(2A) Any loss from an investment of the Residential Bonds Account and the Residential Bonds Investment Income Account must be deducted from or otherwise adjusted in the Residential Bonds Investment Income Account. (3) The Authority must pay out of the Residential Bonds Investment Income Account—

(a) any amount required for the administration of this Part; and (b) any amount authorised by or under this Act to be paid out of the Residential Bonds Investment Income Account.

437 Residential Tenancies Fund

The Authority may pay into the Residential Tenancies Fund out of the Residential Bonds Investment Income Account any amount which the Authority determines should be paid into the Residential Tenancies Fund.

438 Borrowing and investment powers of Authority

(1) The Authority must open and maintain separate accounts at an authorised deposit-taking institution or institutions within the meaning of the Banking Act 1959 of the Commonwealth in the State for the purposes of the Residential Bonds Account and the Residential Bonds Investment Income Account. (2) The Authority has the powers conferred on it by the Borrowing and Investment Powers Act 1987.

439 Additional amounts

(1) The Minister may from time to time make a declaration under this section providing for the payment of an amount or amounts in respect of bonds. (2) Before making a declaration under this section, the Minister must obtain a report of an actuary on the Residential Tenancies Fund. (3) The Minister must not make a declaration under this section except in accordance with the recommendations contained in a report under subsection (2). (4) A declaration made under this section—

(a) must be made by a notice published in the Government Gazette; and (b) may provide for the payment of amounts in respect of bonds of a specified class or classes calculated at a specified rate and in respect of a specified period.

(5) If a declaration has been made under this section, then the amount or amounts determined from time to time in accordance with that declaration in respect of a bond must be added to the bond when it is paid out under Division 3. (6) An amount or amounts to be added to a bond pursuant to subsection (5) must be retained in the Residential Bonds Investment Income Account until paid out under Division 3.