NSW Fair Trading clarifies passing on bank fees for rent payment

You will recall that we recently issued a communication clarifying NSW Fair Trading’s position on whether you can pass on bank fees to tenants if you have offered a prescribed way of paying rent and they choose another method that incurs fees.

Thanks to feedback from members, we went back to Fair Trading to raise concerns and get more answers on their position.

As a result, Fair Trading has now provided further clarity on when landlords and agents can pass on bank fees and charges to tenants by introducing the Residential Tenancies Amendment (Fees and Payment Methods) Regulation 2026 (NSW).

Fair Trading has advised in the regulation: If a tenant is offered a prescribed way of paying rent and the renter chooses to pay rent using a method that incurs standard card fees or surcharges from a financial institution, the landlord or agent may charge the tenant a fee for the recovery of the transaction cost. This applies to electronic transactions made with a credit, debit, or pre-paid card (whether or not a physical card is used).

Important Conditions

• Only the standard bank-issued fee may be passed on; no additional costs can be added
• Fees can only be charged once per transaction
• Either the landlord or the agent may pass on the fee - not both

Fee-free prescribed payment options

Fees cannot be passed on if the tenant pays using one of the following prescribed payment methods:

• Approved electronic bank transfer (EFT, direct debit, BPAY)
• Centrepay

From 2 March 2026, landlords and agents must provide tenants access to both Centrepay and an approved electronic bank transfer method to ensure fee-free options are available.

Social housing providers may use the Rent Deduction Scheme instead of Centrepay, but cannot pass on any fees associated with this method.

Supporting Members

REINSW was successful in raising member concerns directly with Fair Trading, advocating on your behalf to clarify how these fees can be applied in practice. This work helped ensure clear rules for passing on fees were developed via the new regulation (above), confirmed that tenants must have access to fee-free prescribed options, and providing greater certainty for agents and landlords managing rent payments.

For more information about rent payments, visit the Fair Trading web page: How and when to pay rent.

If REINSW members require further guidance, please contact the REINSW Helpline on (02) 9264 2343 or email [email protected].