Under the Residential Tenancies Act 2010, landlords can only charge tenants for water usage if the property is separately metered and it meets other requirements, including specific water efficiency measures.
These measures include ensuring all taps and toilets are leak-free at the start of a tenancy and whenever upgrades or repairs are made, as well as having shower heads, internal cold water taps and kitchen and bathroom mixer taps with a maximum flow rate of 9 litres per minute installed.
From 23 March 2025, rental properties must also contain toilets that are dual-flush with a minimum three-star Water Efficiency and Labelling Standard (WELS) rating, in order for water usage charges to be passed on to tenants.
Around 40 per cent of household water is used in the bathroom, making it one of the easiest places to save water through efficiency measures.
Ensuring all rental properties have water-efficient fixtures such as dual-flush toilets helps reduce unnecessary waste while supporting long-term water conservation efforts.
The new dual flush requirement joins existing water efficiency measures to ensure tenants are only paying for water usage where homes meet modern water efficiency standards. If a rental property does not meet the requirements, a landlord cannot pass on water usage costs to tenants.
Water usage charges must be billed separately from rent, and landlords must provide a copy of the water bill or another form of evidence. Tenants should be given at least 21 days to pay, and charges must not exceed the amount billed by the water provider.
If a tenant has concerns about water usage charges based on non-compliance with water efficiency requirements, they should first discuss the issue with their landlord or agent. If no resolution is reached, contact NSW Fair Trading for guidance or to lodge a complaint.
For more information on water efficiency requirements and tenant rights, visit the NSW Fair Trading website
Quotes to be attributed to NSW Rental Commissioner Trina Jones.
“Improving water efficiency in rental properties is an important step towards improving the quality of rental homes in NSW and ensuring we have secure, reliable water sources for the future.”
“This requirement was announced alongside other water efficiency measures in 2020, providing landlords with time to prepare for the changes.”
“This is a practical step towards reducing demand on water infrastructure, with simple changes like water-efficient toilets contributing to cost savings for both renters and landlords.”
