This proposal could save renters up to $2,600 over 10 years!

The dream of owning a home, also known as the ‘Great Australian Dream’ has long been a cornerstone of the country’s national identity, but for many, it remains just that—a dream. With property prices soaring and the cost of living on a relentless upward trajectory, the reality for many is a life of renting.

But what if there was a way to ease the financial burden for the millions of renters across the country? McKell Institute, a progressive research institute, has put forth a bold idea that could revolutionise the rental market: a national portable bond scheme.

More so, this could be the key to unlocking substantial savings and providing much-needed relief for many renters.

This innovative concept would allow renters to pay a bond just once in their lifetime, transferring it from one lease to the next instead of scrambling to come up with a new deposit each time they move.

The proposal also suggests an opportunity for renters to earn interest.

The proposal does not just stop there. It also suggests that renters should earn interest on their bond, potentially saving an estimated $2,600 over a decade.

Edward Cavanough, McKell Institute’s Chief Executive, is championing this policy as a way to alleviate the significant cost of living pressures that renters face in today’s 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,’ he explained.

‘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.’

He adds that the proposal is not merely about short-term gains but also about ‘laying the groundwork for long-term change.’

With this, Cavanough is urging the government to take this proposal seriously and consider it as an election issue, emphasising that ‘the vote of renters will be pivotal.’

He argues that the ‘outdated and unnecessary bond system’ should not hold people back from improving their ‘work, study, or living conditions.’

This call for change comes against the backdrop of a recent report revealing Sydney as the country’s ‘costliest rental city,’ with Perth as the next most expensive.

Do you have any experiences to share on this topic? Do you believe a national portable bond scheme could make a difference in your life? We would love to hear your thoughts, our YourLifeChoices readers.

Also read: 8 ways to save up to $13,000 in 2025 amid soaring living costs

Floralyn Teodoro
Floralyn Teodoro
Floralyn covers different topics such as health, lifestyle, and home improvement, among many others. She is also passionate about travel and mindful living.

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