Last updated: March 2025 | Fact-checked by the editorial team
Securing rental accommodation as a student in Australia presents unique challenges, particularly for those without an established credit history. With rental vacancy rates at historic lows in many university areas and landlords becoming increasingly selective, students often find themselves at a significant disadvantage in competitive rental markets.
The rental bond—typically equivalent to four weeks' rent—creates a substantial financial barrier for many students. In cities like Sydney and Melbourne, where the average bond can exceed $2,000, this upfront cost can make housing inaccessible despite a student having sufficient income for monthly rent payments.
Fortunately, various rental bond assistance programs exist across Australia specifically designed to help vulnerable groups, including students, overcome these initial financial hurdles. This guide explains how these programs work and how students without credit history can use them to secure safe, affordable accommodation.
A rental bond is a security deposit paid to a landlord or property manager at the beginning of a tenancy. In Australia, this amount is typically equal to four weeks' rent and is held by the state's bond authority rather than by the landlord directly.
The bond serves as financial protection for property owners against potential damages or unpaid rent. At the end of a tenancy, the bond is returned to the tenant if the property is left in good condition and all rent has been paid.
For students, particularly those studying full-time, coming up with this lump sum presents significant challenges:
"For students without established credit history, government bond assistance programs can be the difference between securing safe accommodation or being locked out of the rental market entirely."
—Housing Policy Officer, Australian Council of Social Service
According to the 2023 Rental Affordability Index, the average rent for a one-bedroom apartment near Australian universities ranges from $320 to $550 per week depending on the city. This translates to bonds of $1,280 to $2,200—amounts that many students simply cannot afford upfront.
The lack of rental and credit history compounds these financial barriers. Landlords and property managers often view students as high-risk tenants, particularly those without previous rental references or credit history to demonstrate financial reliability.4
Rental bond assistance programs are government initiatives designed to help eligible individuals secure rental properties by providing loans or grants to cover bond payments. These programs are particularly valuable for students who lack credit history but can demonstrate capacity to pay ongoing rent.
Most rental bond assistance in Australia is administered at the state level through housing departments or dedicated rental bond authorities.
These programs share some common features:
Services Australia (Centrelink) also offers Rent Assistance as a regular payment supplement for eligible students receiving Youth Allowance, Austudy, or ABSTUDY. While this doesn't directly cover the bond, it helps with ongoing rental costs and can be mentioned in rental applications to demonstrate payment capacity.
A 2022 Universities Australia survey found that 58% of full-time domestic students were concerned about their ability to pay rent or housing costs. Despite this widespread need, many students remain unaware of bond assistance options available to them.
"We're seeing more universities step in to help students navigate rental bond assistance applications. The process can be complex, but with proper guidance, approval rates for student applicants have improved significantly."— National Shelter Housing Policy Advisor
Each Australian state and territory offers different bond assistance programs with varying eligibility requirements and benefits. Here's a breakdown of the major programs by state:
The NSW Department of Communities and Justice offers RentStart Bond Loans to eligible students and other renters. In 2022-2023, approximately 23,000 RentStart Bond Loans were approved in NSW, with students making up about 15% of recipients.
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Victoria's Department of Families, Fairness and Housing provides bond assistance through the RentAssist Bond Loan Scheme. Victorian universities reported a 23% increase in students successfully using this program between 2021 and 2023.
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Queensland's Department of Housing offers both Bond Loans and Rental Grants to help students and other eligible renters. Queensland's program is notable for offering non-repayable grants in addition to loans, making it particularly beneficial for students.
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The WA Department of Communities provides Bond Assistance Loans through its Housing Authority. WA also offers specific provisions for students on Youth Allowance or Austudy.
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SA Housing Authority provides bond guarantees and loans through its Private Rental Assistance program.
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Tasmania, the Northern Territory, and the ACT each have their own bond assistance schemes with similar structures but varying eligibility requirements and maximum amounts. According to the Productivity Commission's Report on Government Services 2023, over 70% of eligible bond loan applications across all states are approved, with processing times averaging 7-10 business days.
Successfully applying for rental bond assistance requires careful preparation and understanding of the process. While specific requirements vary by state, here's a general guide to navigating the application process:
Most bond assistance programs require the following documents:
To strengthen your application, ensure all information is accurate, consistent, and complete. Many universities offer assistance with reviewing applications before submission, significantly improving approval chances.
When government bond assistance isn't available or suitable, students have several alternative pathways to secure accommodation without extensive credit history.
The University of Sydney, for example, maintains a Student Accommodation Assistance program providing interest-free loans for housing bonds to eligible students. On-campus accommodation with reduced or no bond requirements. University-guaranteed housing agreements with private providers. Emergency accommodation funds for students in financial hardship. Bond payment plans exclusive to enrolled students
These services typically charge 4-7% of the annual rent as a one-time fee but can dramatically increase approval chances.
Companies like Student Rental Guarantor and Rent Guarantor Australia act as guarantors for a fee. International student-focused services that bridge the gap between overseas backgrounds and local requirements. University partnerships with guarantee providers offering discounted rates
"The rental market in Australia has become increasingly competitive, making it harder for students without rental history to secure housing. State bond assistance schemes are critical support mechanisms that need greater promotion among student communities."— CEO, Youth Affairs Council Australia
According to the Australian Housing and Urban Research Institute, purpose-built student accommodation grew by 11% between 2020 and 2023, creating more options with student-friendly application processes.
Unilodge, Scape, and Iglu often have simplified application processes. Purpose-built student accommodation typically requires smaller deposits. Some offer "book now, pay later" options specifically for students, while many don't require rental history for new student tenants
While accessing immediate housing is the priority, students should simultaneously work on building credit history to ease future rental applications:
Request that your rent payments be reported to credit bureaus (services like Rental Rewards can help). Maintain perfect payment records and request a rental ledger as proof. Ask for written references from landlords or property managers. Document all property condition reports thoroughly
"Students should view rental bond assistance as not just financial support, but as an opportunity to establish their first positive rental history. This creates a foundation for future housing applications."— Financial Counselor, Financial Counselling Australia
The Australian Securities and Investments Commission reports that students who establish credit history during their studies have a 43% higher approval rate for their first post-graduation rental application.
Navigating Australia's rental market as a student without credit history presents challenges, but rental bond assistance programs provide viable pathways to secure housing. These government initiatives, combined with university resources and alternative options, can significantly reduce barriers to appropriate accommodation.
When approaching the rental market
Remember that lacking credit history is a common situation for students, and systems exist specifically to address this challenge. With proper preparation and knowledge of available resources, you can successfully secure suitable accommodation throughout your studies.
[1] Rental Affordability Index 2023, National Shelter and SGS Economics & Planning
[2] Universities Australia Student Finances Survey, 2022
[3] Australian Bureau of Statistics, Housing Occupancy and Costs, 2021-22
[4] Productivity Commission's Report on Government Services, 2023
[5] National Housing Finance and Investment Corporation, State of the Nation's Housing 2023
[6] Australian Securities and Investments Commission, Young Australian Financial Capability Report, 2023
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