Millions of dollars in unclaimed rental payments kept by Consumer and Business Services, not returned to renters

Millions in unclaimed rental payments aren’t being returned to renters, with a report criticising the government agency responsible. See how you may be eligible.

Millions of dollars worth of unclaimed rental payments has sparked high-level criticism of the state government agency responsible for returning the money.

Consumer and Business Services has acknowledged it must do better to return “approximately” 25,000 rental bonds valued at $15m held by the agency as of July 1 this year – up from $10m two years ago.

Auditor-General Andrew Richardson’s annual report raised concerns the CBS had “no procedure to manage and reduce” the unclaimed bonds liability and that staff had “inappropriate access” to a system managing the money.

“In 2018‐19 CBS developed an unclaimed bonds liability procedure but it did not outline how CBS will manage and reduce this liability,” the report said.

“Our review of the procedure in 2020‐21, and in previous years, noted that it had not been amended to address this deficiency.”

The rental bond is a security deposit lodged with the CBS and protects the landlord in the event of any damage to a property or rental arrears in breach of tenancy agreements.

The bond amount is equal to four weeks’ rent where the weekly rent is $250 or less and six weeks’ rent if above $250.

As at June 31 bonds worth $230m had been lodged in the residential tenancies fund.

A CBS spokesman said the agency “appreciates” it must improve its management of unclaimed bonds.

“Sometimes refunds are either delayed or do not occur for a range of reasons – for example, a tenant has provided incorrect banking details, they fail to claim the bond or they’ve moved and not provided any forwarding information,” he said.

“Where contact details are available, we will be endeavouring to contact tenants to advise them they may have money owed to them, and simplify the process of searching to see if they have a bond owing.

“This process is expected to start later this year and, in the meantime, we would encourage people to contact CBS.”

He said CBS would also start automatic notifications to remind tenants money was available to them “soon after it becomes available”.

South Australian Council of Social Service chief executive Ross Wommersley said it was critical people accessed this money particularly in light of the rental affordability crisis gripping the state.

“Getting access to money that belongs to them is really important and particularly through Covid,” he said. “I think it would be a tragedy is someone missed out on being able to get another rental property because they didn’t have access to their bond for whatever reason.”

He said the process to access bonds should be as “efficient as we can make it”.

Disputes over bonds are heard through the South Australian Civil and Administrative Tribunal and Mr Wommersley said claiming money through that process involves “substantial effort”.

People can check for unclaimed bonds here.