Bond Lodgment – What is Happening?

13 January 2021   |   by Mandy Welch
Bond lodging reporting

As we are all aware, the banks have stopped producing cheques and cheques was the way we were expected to pay our bonds. During the Covid lockdown, some companies were invited to pay their bonds through internet transfer and in bulk, but this is not available to everyone. Currently, you are expected to lodge your bonds one by one if you use an internet transfer.

Over the years we have tried to work with the Bond Centre and the government to improve this process. We have attended several meetings about a new system that we could connect to, up to now that has failed to eventuate. Duncan Abbott, CTO of Palace, even designed a system on paper that would work but nothing happened. In 2019 the conversation started again and again went nowhere.

Late last year, I contacted an outside company that liaises with the government. Kate Fiske, who used to work in the government department that works with the Bond Centre and Technology has been able to identify the correct people and is now in the process of setting up a meeting for next week.

In the short term, we are just asking if we can send them a CSV file with a remittance automatically emailed at the same time the payment is created. Just like with Owner Payments. They are discussing this, they wanted the payments separately at first, but we pointed out that Cheques are a bulk amount, so what is the difference? So just waiting for confirmation on this. This would be the fastest solution, as we can create this quickly.

In the long term, we are trying to get them to allow an API or even an interactive website that allows you to lodge your bonds through Palace after you have receipted the money.

Kate has also written to the Minister to create some urgency and to have a conversation about the extra work anything to do with Bonds-lodging or reporting is causing the property management industry. The system has been designed for individual landlords and not property managers.

What can you do?

I would like to submit statements from our clients, explaining the frustration of the current system. So anyone that would like a say, can you please email me, mandy@getpalace.com. The more voices the better in finally getting this changed. It is a very antiquated system and it is time it got brought into modern times.

Mandy Welch,
Chief of Client Services.