Water Efficiency Standards for NSW Rental Properties

Rental property legislation is constantly evolving, with the latest update involving water efficiency standards in NSW.

For a rental property to meet water efficiency measures, it must have:

• (As of 23^rd March 2025) for all toilets on the property – dual flush functionality and a minimum 3-star WELS rating
• For cold water, and single mixer taps – a maximum flow rate of 9 litres per minute for internal kitchen sinks and bathroom hand basins. Taps for the bathtub, laundry sink, washing machines, dishwasher and outdoor taps are exempt from the 9 litre per minute flow rate requirement
• For shower heads – a maximum flow rate of 9 litres per minute
• No leaking taps or toilets anywhere on the property at the start of the tenancy and whenever the other water efficiency measures are installed, repaired or upgraded.

Can you pass water usage charges to tenants?

If these water efficiency standards are met and the property premises are individually metered (or water is delivered by a vehicle), landlords can pass water usage charges to tenants.

To prove water efficiency, a combination of the SAA Service report, and or any rectification works completed by your plumber can be presented to tenants to confirm the property meets the water efficiency standards.

Beyond upgrading toilets, landlords should, for peace of mind, continue inspecting all taps and toilets for leaks at each annual check or at any interim point that SAA needs to attend. These inspections help ensure properties remain compliant and up to standard.

Smoke Alarms Australia offers water efficiency testing in line with current NSW legislation as an add on to the standard smoke alarm subscription. Water efficiency can be added for only $30 per year including GST and is tax deductible.