Stricter water efficiency standards are now in place for rental properties across NSW, aiming to reduce water waste and low bills for tenants – especially those living in older homes.
Under the Residential Tenancies Act 2010, landlords can only charge tenants for water usage if the property is separately metered and meets key water efficiency standards. These include leak-free taps and toilets at the start of the tenancy, and efficient fixtures such as shower heads, bathroom and kitchen mixer taps with a maximum flow rate of 9 litres per minute.
From 23 March 2025, all rental properties must have dual-flush toilets with a minimum three-star Water Efficiency Labelling and Standards (WELS) rating to pass on water charges to tenants.
With bathrooms accounting for around 40% of household water use, these updates aim to reduce unnecessary waste and support long-term water conservation. If a rental does not meet these efficiency standards, landlords cannot bill tenants for water usage. Any charges must be invoiced separately from rent, supported with a copy of the water bill or similar proof, and tenants must be given at least 21 days to pay.
Tenants with concerns about water charges should first speak with their landlord or agent. If the issue isn’t resolved, they can contact NSW Fair Trading for assistance or to lodge a complaint.
For more information visit https://www.nsw.gov.au/departments-and-agencies/fair-trading/news/dual-flush-deadline-for-rental-properties-to-meet-new-water-efficiency-rules
