Frequently Asked Questions
Security Bonds, Section 19 of the Retail Commercial Leases Act 1995 FAQ
Do I need to pay a security bond?
Some leases may require you to pay a cash security bond, which must be held by the South Australian Small Business Commissioner.
Amount of Bond
A security bond cannot exceed the equivalent of three months’ rent (exclusive of GST). If a lease provides rent concessions, such as a rent-free period or a period of rent at concessional rates, the concession will be disregarded.
Is GST payable on Retail and Commercial Bonds?
The rental threshold amount and the amount of a security bond are both exclusive of GST.
What timeframe does the lessor (landlord/agent) need to lodge the security bond?
This security bond amount must be lodged with the Office of the Small Business Commissioner within seven (7) days of receipt of moneys by the landlord.
If the party receiving the security bond is a registered agent—within 28 days.
How are bonds lodged to SASBC?
To lodge a bond, you must download a Retail and Commercial Lodgement of Security Bond form from the SASBC website or available here: Retail & Commercial Lodgement of Security Bond Form.
Once the form is completed and signed by both parties, submit the form to the SASBC for processing via firstname.lastname@example.org or post.
Payment must be made by direct debit.
How do I claim a Bond Refund?
When the tenancy/lease has ended, a claim for a refund can be made for of the bond.
A lessee or lessor/agent can make a claim against a bond by completing a bond refund form (click here).
Once the form is completed in full including EFT details, return the form to the SASBC via email@example.com or post.
A bond will only be disbursed when both parties have given consent, however if the Commissioner receives a completed form from one party, the Commissioner will inform the other party by written notice and allow 14 days to provide a response. If no written notice of dispute is received the bond will be refunded.
Receipt of a dispute will be referred to the Magistrates Court to determine the matter.
How do I access retail and commercial security bond forms?
Forms can be downloaded via the forms page.
I have requested to be notified by e-mail of a bond lodgement or refund, but have not received it?
If you are unable to find an SASBC notification e-mail sent to you as part of a lodgement or refund, check your junk mail and mark the sender as safe, otherwise contact the office via firstname.lastname@example.org.
What happens if one of the parties doesn’t agree to the payout of a Retail and Commercial Security Bond?
If both parties have not completed and signed the refund form, the SASBC will send a notice of claim form (dispute application) to the other party. The form must be returned to the SASBC within the nominated time frame (14 days) before the security bond it paid out under subsection (5) of the Act.
If the refund is disputed, the SASBC will create a dispute file and will be referred to the Magistrates Court to resolve the dispute. The SASBC case management team will contact both parties to advise that a dispute has been referred to the Magistrates Court.
My co-lessee is unable to sign the refund form, what happens now?
If one lessee on the bond can be contacted, the SASBC will accept a signed declaration authority (which is located on the back of the Retail and Commercial Security Bond Refund form (link)) authorising the release of the bond to the nominated tenant.
This authorisation must be signed when it is submitted to the SASBC.
How do I access Retail and Commercial Security Bond forms?
Forms can be downloaded from the forms page. Printed forms are to be completed and signed by all parties.
Completed forms can be emailed to: email@example.com
Or post to:
Office of the Small Business Commissioner
GPO Box 1264
ADELAIDE SA 5001