Where the law actually sits
Section 51 of the Residential Tenancies Act 2010 (NSW)sets the tenant's end-of-tenancy obligations. The relevant part is subsection (2): the tenant must return the premises in “substantially the same condition (fair wear and tear excepted) as at the commencement of the tenancy.”
That single phrase — “fair wear and tear excepted” — is what stops a landlord deducting for normal aging. The phrase has been the subject of dozens of NCAT decisions. The settled position is:
- · Wear and tear caused by reasonable use over time is not the tenant's responsibility.
- · Damage caused by careless or deliberate acts is.
- · The line shifts with how long the tenancy was. Two months of carpet wear is unusual; five years of carpet wear is expected.
- · The landlord bears the onus of proving both the damage and the reasonable cost of repair.
Worked examples
Faded wall paint after 3 years
Normal aging. Paint dulls. Not deductible.
Scuff marks at light switch height
Normal use over time. Not deductible.
Small nail holes from picture hooks
Reasonable use of walls. Not deductible (unless lease specifically prohibits with notice given).
Sun-bleached blinds or carpets
Natural environment effect. Not deductible.
Carpet thinning in high-traffic areas after 5 years
Depreciation, not damage. Not deductible.
Wax/burn mark on carpet from a candle
Damage caused by tenant act. Deductible at depreciated cost — old carpet means lower replacement value, not new-for-old.
Hole punched in plasterboard wall
Damage. Deductible — landlord must produce invoice for actual repair.
Mould from a leaking shower (you reported it, no repair done)
Landlord's responsibility if you reported the cause. Not deductible.
Mould from poor ventilation (no leak, just not opening windows)
Tenant responsibility. Deductible.
Stained carpet from a pet you weren't permitted to have
Damage + breach. Deductible at depreciated cost, plus possible additional breach claims.
"General cleaning" charge $400, no invoice
Landlord must produce itemised proof of actual expense. Round numbers without invoices are challengeable. s. 162 RTA 2010 (NSW).
Carpet steam clean at end of tenancy (per lease clause)
If your lease has a mandatory cleaning clause, that clause is likely unenforceable under s. 51. The landlord cannot impose end-of-tenancy obligations beyond what the Act requires.
The depreciation rule
Even when damage is real and the tenant is responsible, the landlord can only claim the depreciated value, not new-for-old.
Example: a 10-year-old carpet has a useful life of about 10 years per Australian Taxation Office depreciation schedules. If you damage it in year 9, the landlord's loss is the carpet's remaining year of useful life — maybe 10% of replacement cost. They can't claim the full cost of brand-new carpet.
NCAT applies this rule routinely. If the landlord's invoice is for a full carpet replacement and they're claiming the full amount from a tenant in a long tenancy, that's a challengeable claim.
What “substantially the same condition” actually means
“Substantially” is the operative word. It doesn't mean “identical” or “like new.” It means recognisably similar, allowing for the passage of time.
A common landlord move at move-out is to compare your photos to the agent's ingoing condition report and treat any difference as damage. That's not the legal test. The test is whether what changed is consistent with reasonable use over the tenancy length.
The invoice requirement
Section 162 requires the landlord to provide evidence of the loss before claiming bond. In practice that means:
- · An itemised invoice from a tradesperson, with the work described.
- · A receipt for materials purchased.
- · Quotes are not enough on their own — the work must actually be done.
- · Round numbers (“$400 for cleaning”) without an invoice are per se challengeable.
If the landlord can't produce an invoice, the claim fails. Politely ask for it — if they say “trust me” or “it's standard,” that's not enough at NCAT.
Renterprise bond return
Bond claim looking dodgy?
Tell us what the landlord wants to deduct. We'll show you which deductions are legitimate (and you should accept) versus which are challengeable (and we'll draft the dispute letter). No tenant cheerleading — if you owe it, we'll tell you to pay.
Try a bond checkThe negotiation framing that usually works
The best move at bond return is rarely “I dispute everything.” It's a precise, item-by-item breakdown showing what you accept (because it's fair) and what you don't (because it's wear, depreciation, or unproven).
That positioning matters because:
- · The agent sees you know the law — they don't want a NCAT hearing on a losing position.
- · You haven't blown the relationship by claiming “everything is fair wear” (which would be wrong and obvious).
- · If it does go to NCAT, you arrive with credibility — you conceded what you should and challenged what you should.
The Renterprise bond check tooldoes this for you automatically — leads with what we call an “Honest Assessment” (e.g. “$200 fair, $1,200 worth challenging, of $1,400 claimed”) and drafts the letter that says so.
When NCAT becomes necessary
If the landlord refuses to release the disputed portion of your bond, you have two paths:
- · NSW Fair Trading mediation — free, can resolve simple cases without a hearing.
- · NCAT application — about $55 filing fee, hearing within 6-8 weeks typically. Bring photos, invoices, the original condition report, and your dispute letter.
For NCAT applications, we offer a full case-builder pack — application form, statement of facts, evidence index, chronology — at our NCAT case builder.
Written by Mya Bertolini, USYD Law and paralegal at Turks Legal. Educational only, not legal advice. For NCAT hearings, contact the Tenants' Union of NSW on 1800 251 101.