Under NSW rental laws, landlords can only pass on water usage costs if the property is separately metered and meets specific conditions. These include ensuring charges do not exceed the landlord’s costs, providing tenants with a copy of the water bill or other evidence of usage, and meeting water efficiency requirements.
From March 2025, rental properties must have:
- Shower heads with a maximum flow rate of 9 litres per minute
- Cold water taps and single mixer taps in kitchens and bathrooms with a maximum flow rate of 9 litres per minute
- No leaking taps or toilets at the start of the tenancy and whenever water efficiency measures are installed, repaired, or upgraded
- Dual-flush toilets with a minimum 3-star WELS rating
The requirement for dual-flush toilets was first introduced in March 2020, with landlords given a five-year transition period to comply.
These water efficiency measures are already included in the standard tenancy agreement, condition report, and Landlord Information Statement.
The updated rules apply to both existing and new tenancy agreements where landlords intend to charge tenants for water usage.
Landlords who fail to meet the new standards will no longer be able to pass on water charges.
