Landlords Beware!

Lowe Lippmann Chartered Accountants

Is your tenant bond secure?


It is important for Landlords to know how to best protect their interests, particularly when it comes to the options of cash security bonds or bank guarantees.


Where a tenant provides a cash security bond to secure its obligations under a lease, this creates a "security interest" in favour of the Landlord under the Personal Property Securities Act 2009. Landlords must register their interest on the Personal Property Securities Register (the "PPSR") to properly perfect this security interest. Failing to do so will run the risk of that interest being defeated by a liquidator in the winding up of the tenant, and the cash bond being lost by the landlord.


Without the protection of a registered security interest on the PPSR, a Landlord holds no better position than any other unsecured creditor, and any claim made by the Landlord on a cash bond may amount to a voidable transaction and be claimed by the liquidator in the insolvency of the tenant.


It is therefore important for Landlords to:


  1. Request a bank guarantee as this is generally the preferred form of security under a lease.
  2. However, where a cash bond is held, the Landlord should register their interest, within the prescribed time, on the PPSR to perfect their interest over the bond.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

Tax Alert - Division 296 draft legislation introduced to Parliament

February 16, 2026
Division 296 draft legislation introduced to Parliament Last week the revised Division 296 draft legislation was introduced into Parliament, and some technical amendments have been made after the exposure draft consultation phase. We will explain some particular areas of concern and re-consider some questions we had raised in earlier Tax Alerts on this topic. This draft legislation has been progressing at a rapid pace, and it appears the Government wants to get this legislation finalised as soon as possible, with these Division 296 rules set to apply from 1 July 2026.

Tax Alert - Transfer Balance Cap indexation & Superannuation changes

February 5, 2026
Transfer Balance Cap indexation & Superannuation changes Following the recent release of the December 2025 quarterly CPI figures by the Australian Bureau of Statistics’, the general transfer balance cap ( TBC ) will increase from $2 million to $2.1 million from 1 July 2026. This is applicable for superannuation fund members considering starting their first retirement phase income stream in 2026–27. This could provide tax effective retirement pension and non-concessional contribution opportunities for some members. The Australian Taxation Office needs to formally confirm this increase.

Practice Update – January & February 2026

February 2, 2026
Mandating cash acceptance The Government recently announced that it was delivering on its commitment "to mandate cash acceptance for essential purchases by finalising regulations that require fuel and grocery retailers to accept cash from 1 January 2026." The changes mean that, from 1 January 2026 , most food and grocery retailers must accept cash for in-person transactions of $500 or less between 7am and 9pm. Small businesses with aggregate annual turnover under $10 million are generally exempted from this mandate. However, this mandate still applies to small businesses that choose to share a trademark with a large retailer. The Government noted that, in addition to the cash mandate for fuel and groceries, consumers also already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet through Post Billpay. The Government will review this mandate after three years, to ensure it is functioning as intended. We prepared a Special Topic article within our Practice Update - December 2025, if you want to read more on this topic – click here .
More Posts