New Rent Payment Rules in NSW: What Landlords Need to Know.

Bank transfer and Centrepay must now be offered — here’s what it means for your investment property.

Managing a rental property means staying on top of changes in legislation — and a new one just landed that affects how your tenants pay rent.

Under updated NSW tenancy reforms, landlords must now ensure that tenants are offered at least one fee-free rent payment method — specifically, bank transfer or Centrepay.

It’s a change designed to make rent payments more accessible and fair — especially for tenants on fixed incomes or those wanting to avoid unnecessary fees.

Here’s what you need to know:

What’s the Change?

The legislation now requires that all renters in NSW are provided with a cost-free option to pay rent. That means as a landlord (or via your property manager), you must offer:

• Direct bank transfer, or

• Centrepay — a free government payment service for eligible Centrelink recipients.

This applies to all residential tenancies, whether managed privately or through an agency.

Important: Tenants cannot be forced to use a third-party payment platform that charges them fees unless they choose to.

Why Is This Happening?

Previously, many tenants were being pushed toward digital rent collection systems (like DEFT, RentPay, or credit card payments) that added extra costs. In some cases, tenants had no alternative — even if they couldn’t afford the fees.

The NSW Government introduced this change to:

• Make rent payments more accessible and equitable

• Ensure tenants aren’t penalised simply for paying rent

• Provide flexibility, particularly for renters on lower incomes or government support

 What Is Centrepay?

Centrepay is a voluntary bill-paying service offered by Services Australia. Tenants receiving eligible Centrelink payments can arrange to have a portion of their income automatically deducted and paid directly to their landlord or agent for rent.

It’s:

• Free for tenants

• Reliable and consistent

• Especially helpful for tenants on fixed or low incomes

Note for landlords: You (or your property manager) must be registered as a Centrepay-approved business to offer this.

What Does This Mean for Landlords?

If you’re managing an investment property in NSW, here’s what you need to do:

1. Ensure at least one cost-free method is available — either bank transfer or Centrepay.

2. Review your current rent collection platform — If it charges tenant fees and is the only option, you’ll need to provide alternatives.

3. Update your lease agreements and communication to reflect these changes.

4. Be transparent — tenants have the right to know they can choose a fee-free method.

Offering multiple payment options helps avoid arrears and keeps you compliant — it’s a win-win.

 What You Can’t Do

• You cannot force tenants to use a payment platform that charges them fees unless they consent.

• You can’t withhold fee-free options or suggest that only one payment method is available.

• You can’t penalise or disadvantage a tenant for choosing Centrepay or bank transfer over another system.

How We Handle This at Nurture Property Group

At Nurture Property Group, we’ve already built flexible, compliant rent payment processes.

Here’s how we keep things simple for everyone:

• Tenants can pay via bank transfer as standard.

• Centrepay setup support for eligible tenants.

• Optional digital platforms for convenience — never required, never with hidden fees.

• Clear communication from day one, so everyone knows their options.

Final Thoughts

This legislation is all about keeping renting fair, transparent, and accessible. As a landlord, adapting to this change is straightforward — and it shows your commitment to doing things right. Offering fair, flexible rent payment options isn’t just about compliance — it’s smart, long-term management that builds stronger relationships with good tenants.

Not sure if your current rent collection setup is compliant?
We’ll review it for you — no pressure, just clear advice to keep you protected.