Legal Updates
NSW Water Efficiency Requirements 2025: What Tenants & Landlords Must Know
Bondinator Team· Content Team
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Since March 23, 2025, a significant shift occurred in NSW rental law that affects both landlords and tenants: landlords can no longer charge tenants for water usage unless their property meets strict water efficiency standards. This legislative change, part of the broader Residential Tenancies Amendment Act 2024, has caught many property owners off-guard and created confusion about compliance requirements.
The new regulations mandate that all toilets in rental properties must be dual flush with a minimum three-star rating under the Commonwealth Water Efficiency Labelling and Standards (WELS) scheme. For thousands of NSW rental properties still using older single-flush toilets, this means immediate action is required.
Properties must meet water efficiency measures, and tenants must be informed about the property's water efficiency features. This creates three critical obligations for landlords:
Every toilet in the rental property must be dual flush. No exceptions. Single-flush toilets, regardless of age or condition, no longer meet compliance standards for charging water usage to tenants.
The three-star WELS rating requirement ensures toilets use a maximum of 4.5 litres for a full flush and 3 litres for a half flush. Older dual flush models that don't meet this standard also require upgrading.
Beyond toilets, landlords must demonstrate their property meets reasonable water efficiency standards. While the legislation doesn't specify exact requirements for all fixtures, best practice includes:
Landlords must inform tenants about which water efficiency features the property has. This should be documented in writing at the start of the tenancy and whenever upgrades are made.
The new law creates a clear financial incentive structure. If your property doesn't meet water efficiency requirements:
Landlords cannot charge tenants for water usage. Period.
This means landlords with non-compliant properties now face:
For tenants in non-compliant properties, you're entitled to refuse water usage charges. However, proving non-compliance requires documentation.
Whether you're a landlord or tenant, documenting water efficiency features is now crucial.
Landlords planning to replace or upgrade any toilets are recommended to install compliant dual flush models now. But installation alone isn't enough—you need evidence:
Bondinator's timestamped documentation system allows landlords to create a comprehensive water efficiency compliance record that's date-verified and accessible during disputes.
If you're being charged for water but suspect the property doesn't meet requirements:
If your landlord cannot provide evidence of compliance, you can challenge water charges through NSW Fair Trading or NCAT. Having your own photographic evidence from move-in day creates an unassailable record.
NSW Fair Trading will enforce the changes, with a new Rental Taskforce created within Fair Trading with dedicated inspectors and compliance officers who will focus on preventing and responding to breaches of rental laws.
For Landlords Charging Water Without Compliance:
Penalties can include:
For Tenants Being Wrongly Charged:
You have the right to:
The tenant typically wins these disputes if they can prove the property lacks required water efficiency features. This is where entry documentation becomes your strongest weapon.
March 23, 2025: Water efficiency requirements took effect
By April 2025: Landlords should have:
For New Tenancies After March 2025:
For Existing Tenancies:
Managing water efficiency documentation might seem bureaucratic, but it's now a legal necessity. Bondinator streamlines this process:
For Landlords:
For Tenants:
This legislative change signals a broader direction in Australian rental law: minimum standards are rising.
Victoria already has minimum rental standards including water efficiency. Queensland is reviewing similar requirements. South Australia is consulting on rental property condition standards.
NSW's water efficiency mandate is likely just the beginning. Expect future regulations around:
Landlords who embrace documentation and compliance now position themselves ahead of regulatory trends. Tenants who understand their rights and document property conditions protect themselves from unfair charges.
The water efficiency requirements aren't just about environmental sustainability—they're about financial responsibility and legal compliance. Whether you're a landlord protecting your right to charge water usage or a tenant ensuring you're not paying for a non-compliant property, comprehensive documentation is your strongest defense.
Concerned about water efficiency compliance in your rental? Document your property's fixtures today with Bondinator's timestamped photo system. Create an unassailable record that protects your rights and proves compliance when it matters most.