Starting March 23, 2025, rental properties in New South Wales (NSW) must meet updated water efficiency requirements aimed at conserving water and reducing household expenses. These new regulations are part of the state’s ongoing efforts to promote sustainable water usage and enhance the quality of rental housing.

Key Update: Dual-Flush Toilets Required

Under the revised standards, all rental properties must be equipped with dual-flush toilets that hold a minimum three-star rating under the Commonwealth Water Efficiency Labelling and Standards (WELS) scheme. This addition builds upon the existing water efficiency requirements for rental homes.

Current Water Efficiency Standards

  • Taps and toilets must be free from leaks at the start of a tenancy and following any repairs or upgrades.
  • Showerheads, internal cold-water taps, and kitchen and bathroom mixer taps must have a maximum flow rate of 9 litres per minute.

Since bathrooms account for around 40% of household water use, upgrading to efficient dual-flush toilets is expected to make a significant impact in reducing unnecessary water wastage.

Compliance and Tenant Charges

To pass on water usage charges to tenants, landlords must ensure their rental properties meet these efficiency standards. If a property does not comply, landlords will be responsible for covering water costs themselves. Water usage charges must be billed separately from rent, and tenants should receive a copy of the water bill or equivalent documentation. Additionally, tenants must be given at least 21 days to settle their water charges, which cannot exceed the amount billed by the water provider.

These changes highlight the importance of water conservation and ensure rental properties contribute to a more sustainable future.