What’s changing from March 2027
New energy standards for Victorian rental properties
From 1 March 2027, the Victorian government will begin introducing new minimum energy efficiency standards for rental properties. These standards aim to make rental properties more comfortable all year round, helping keep homes cooler in summer and warmer in winter. These standards will also lower energy bills by reducing the amount of energy needed to cool and heat your home.
The standards have different start dates, giving landlords (rental providers) time to plan ahead. Some standards apply when an existing appliance breaks and cannot be repaired. Other standards apply when you start a new lease or change to a periodic (month-by-month) lease.
Some properties may be exempt from certain standards. For example, if you live in a heritage-listed property, the landlord does not need to meet the energy efficient cooling standard if a permit to make these changes was refused. Other exemptions also apply. To see the most common exemptions, visit Consumer Affairs Victoria’s webpage New minimum energy efficiency standards.
When the new energy efficiency standards apply
| Minimum standard | When it applies |
|---|---|
| Energy efficient heating | If on or after 1 March 2027 your fixed heater in the main living area breaks down and can’t be repaired. |
| Energy efficient cooling – Stage 1 | If you start a new lease or change to a month-to-month lease on or after 1 March 2027 and there is no fixed energy efficient cooling system in the main living area, or your existing air conditioner breaks down and can’t be repaired. |
| Energy efficient cooling – Stage 2 | From 1 July 2030 all rental properties must have a fixed energy efficient cooling system in the main living area. |
| Energy efficient hot water system | If on or after 1 March 2027 your existing hot water system breaks and can’t be repaired. |
| Water efficient shower heads | If you start a new lease or change to a month-to-month lease on or after 1 March 2027. |
| Ceiling insulation | If you start a new lease or change to a month-to-month lease on or after 1 March 2027 and there is no existing ceiling insulation in all ceiling spaces. |
| Draughtproofing (sealing gaps on all external doors, windows and unsealed wall vents) | If you start a new lease or change to a month-to-month lease on or after 1 July 2027. |
Minimum requirements
Landlords must follow specific requirements to meet the new minimum energy efficiency standards.
Energy efficient heating and cooling
Installing heating that is either:
- An electric, non-portable, non-ducted air conditioner or heat pump capable of heating with a 2 star or above GEMS heating rating (for the climate area of the property), or
- An electric ducted heating system with a GEMS Heating Seasonal Performance Factor of 3.2 or above (for the climate area of the property)
Installing cooling that is either:
- A non-portable, non-ducted electric air conditioner or heat pump capable of cooling, with a 3 star or above cooling rating (for the climate area of the property), or
- A ducted electric air conditioner or heat pump capable of cooling, with a Total Cooling Seasonal Performance Factor of 3.8 or above (for the climate area of the property)
Note: If your landlord is replacing your heating or cooling with a reverse-cycle air conditioner, it’s worth them checking it meets both the heating and cooling standard. This allows them to meet both standards with one appliance, instead of paying for separate upgrades.
Energy efficient hot water system
The hot water system must be an efficient heat pump water heater or an electric-boosted solar water heater.
Water efficient shower heads
Installing a water efficient shower head in all showers that meets a minimum 4-star WELS (Water Efficiency Labelling and Standards) rating.
Ceiling insulation
A qualified installer places insulation in all ceiling spaces to a minimum R-value of 5.0. R-value is the technical specification for measuring insulation.
Draughtproofing
Fitting draught-sealing or weather-stripping products to all gaps around external doors and windows, and to all unsealed wall vents.
If the property has gas appliances, a licensed plumber must carry out a gas safety check before any draughtproofing work begins.
To find out more about these new minimum standards, visit Consumer Affairs Victoria’s webpage New minimum energy efficiency standards.