Energy Efficiency Mandates: What Renters Need to Know in 2025
Australia’s focus on sustainability continues to shape everyday life — and renters are not exempt. With the government introducing new energy efficiency mandates for rental properties, tenants are becoming a central part of the transition to a greener future. Whether you rent a flat in Sydney or a house in Perth, these changes will likely affect your comfort, costs, and rental rights.
Understanding the New Energy Efficiency Mandates
The Australian Government has been progressively tightening energy efficiency standards across all housing types. These mandates aim to reduce carbon emissions, lower household energy bills, and improve living standards.
Under these new frameworks, landlords must ensure that rental properties meet minimum energy efficiency standards. This may include:
Proper insulation and draught-proofing.
Energy-efficient lighting and appliances.
Modern heating and cooling systems with low emissions.
Solar power or renewable energy options where possible.
These reforms are part of a national effort to make housing more sustainable while aligning with Australia’s Net Zero 2050 goals.
What This Means for Renters
For renters, the benefits are clear — lower energy bills, healthier homes, and better thermal comfort. However, the transition may also bring temporary challenges, such as rental increases or limited property availability during upgrades.
Tenants should be aware of their rights and obligations, particularly in states where new standards are being phased in. Some states have already implemented specific requirements:
Victoria: Minimum energy efficiency standards for rentals include ceiling insulation and efficient heating.
New South Wales: Gradual rollout of mandatory appliance efficiency and insulation improvements.
Queensland and ACT: Incentives for landlords to install energy-efficient systems and rebates for compliance.
Can Renters Request Upgrades?
Yes — in most states, renters can now formally request reasonable energy efficiency improvements, such as replacing old appliances or improving insulation.
Landlords generally cannot refuse such requests without a valid reason. However, the process varies by state, and tenants should consult their local Residential Tenancies Authority or relevant Tenancy Tribunal for specific guidance.
In some cases, energy upgrades may be co-funded through government grants or rebates, easing the financial burden on both renters and landlords.
How to Check if Your Home Meets the Standards
Renters can take proactive steps to determine whether their property is compliant:
Ask your landlord or property manager about the property’s energy efficiency rating.
Check for an Energy Performance Certificate (EPC) if available.
Look for obvious efficiency features such as LED lights, insulation, and double-glazed windows.
Use online tools from government energy departments to estimate home efficiency.
If your home falls short, you can negotiate improvements or seek advice from tenant advocacy groups or state housing departments.
The Broader Impact on the Rental Market
These reforms are reshaping Australia’s rental landscape. While initial costs for landlords may rise, the long-term outcome is expected to be positive: reduced emissions, improved energy security, and better living conditions for tenants.
However, experts warn that the transition could place pressure on older housing stock, particularly in low-income rental markets. Policymakers are working to balance environmental goals with housing affordability by offering rebates and incentives to support landlords and renters alike.
The Energy Efficiency Council suggests that government subsidies and green financing options will play a critical role in achieving compliance without driving up rents excessively.
What Renters Should Do Now
Stay informed: Follow updates from the Department of Climate Change, Energy, the Environment and Water.
Review your lease: Check if any clauses mention energy efficiency responsibilities.
Document issues: Keep a record of energy-related defects (e.g., draughts or faulty heating).
Communicate: Discuss efficiency upgrades openly with your landlord or agent.
Taking these steps not only ensures compliance but also contributes to Australia’s sustainable housing future.
Energy efficiency mandates represent more than just policy change — they’re a cultural shift toward a cleaner, fairer housing system. For renters, understanding these requirements is vital to protecting their rights, cutting energy costs, and contributing to national sustainability goals.
Whether you’re navigating new regulations or considering greener living choices, staying informed and proactive is key.
Are you a renter unsure about your rights under the new energy efficiency mandates? Stay ahead of the changes.
