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Water Efficiency Certificate NSW & Investment Properties
Water Efficiency Certificate NSW & Investment Properties
Property remains a solid investment choice in Australia, but understanding your rights and responsibilities as a landlord is crucial, particularly concerning utility costs and compliance. Ensuring your rental property is equipped with energy and water-efficient appliances is now a key component of tenancy laws. At Chiswick Plumbing, we provide water system installation services that are water efficiency test certified.
Water, unlike other utilities such as electricity and gas, stays connected with the account typically in the landlord’s name. As a landlord, you're responsible for covering all water and sewerage service charges, excluding usage charges. To ensure compliance, landlords in New South Wales must secure a water efficiency certificate NSW or water compliance certificate NSW, verifying that the property meets the required standards.
Landlords must provide tenants with a copy of the relevant section of the water bill or other documentation proving the usage costs. Payment requests should be made within three months of the bill being issued, giving tenants at least 21 days to pay. It’s important to note that water usage charges must be paid separately from the rent. Additionally, conducting a water efficiency test can help avoid disputes by confirming that the property is up to code, which might also affect the water efficiency certificate cost.
Water Usage & Water Efficiency Standard in NSW
Many people might assume that tenants are automatically responsible for the cost of water they use, but this isn’t always the case. In New South Wales, landlords can only request tenants to pay for water usage if specific conditions are met:
- The property is separately metered.
- The charges align with those outlined in the water supplier’s bill.
- The property complies with the required water efficiency standards, which can be confirmed through a water efficiency certificate NSW or water compliance certificate NSW.
These requirements ensure that tenants are only charged for their actual water usage, provided the property meets the appropriate efficiency criteria. For further details, landlords can refer to the NSW Fair Trading guidelines on water usage in rental properties.
If tenants tamper with or remove water efficiency measures, they could be held legally responsible for replacing them and covering any additional usage costs. This aspect of tenancy law underscores the importance of maintaining compliance with water efficiency standards in NSW.
Landlords are obligated to cover all water supply service fees (excluding usage charges) and all sewerage service fees (excluding pump-out septic service charges). For social housing, charges are determined by the
Department of Communities and Justice, as outlined in their official guidelines. By understanding these regulations, landlords can ensure they meet their legal obligations while also managing costs effectively.
| Water Efficiency Measures NSW | Required Standard |
|---|---|
| Leaks | There cannot be any leaking taps or toilets anywhere on the property at the start of a tenancy, or when other water efficiency measures are installed, repaired, or upgrades |
| Shower Heads | Maximum flow rate of 9L per minute |
| Taps | Maximum flow rate of 9L per minute for all internal cold water taps and single mixer taps for kitchen sinks and bathroom hand basins¹ |
| Toilets | From March 23, 2025, all toilets on the property must be dual-flush² |
¹ The 9L p/minute flow rate does not apply to other taps on the property. This includes:
- Bathtubs
- Laundry Sinks
- Washing Machines
- Dishwashers
- External & Garden Taps
² Dual-flush toilets must have a minimum
3-star- WELS rating
In addition to meeting water efficiency standards, the property must have a separate water meter or receive water deliveries. If a rental property fails to meet these requirements, the landlord is responsible for covering the cost of water usage. For properties that rely solely on a water tank, landlords must ensure it is filled before the tenancy begins, while tenants are responsible for refilling it if water efficiency standards are met. Additionally, tenants must cover the cost of septic tank pump-outs when necessary for properties with a septic system.
Ensuring your investment property complies with these standards and is equipped with water-efficient products is crucial. Water billing periods might not align with tenancy agreements, so to avoid charging the tenant for a previous occupant’s water usage, it’s essential to record the water meter reading on the condition report at both the start and end of each tenancy. Adhering to these practices helps protect both landlords and tenants from potential disputes.
Water Efficiency Test & Rebates NSW
Currently, there is no state-wide rebate scheme available for homeowners to upgrade or replace inefficient showerheads or appliances in New South Wales. However, it’s a good idea to regularly check the NSW Government website or consult with your local council to see if any rebates become available. If landlords receive a rebate for water usage charges, they are required to pass this benefit on to the tenant.
Even if your local council doesn’t offer a water efficiency rebate scheme, it’s important to note that the costs associated with meeting water efficiency standards can still be deducted at tax time for taps and
leaking showing repairs.
Water Efficiency Certificate NSW
Although there’s no legal obligation to provide a water efficiency certificate NSW to tenants or property managers, having one can prevent potential disputes in the future. This certificate confirms that your property meets the criteria established by the Water Efficiency Measures. However, if you’re building a new home or undertaking major renovations exceeding $50,000 (like major
gas plumbing services), you’ll need a
BASIX certificate to demonstrate that your property complies with sustainable planning measures.
Water-Efficient Products & Water Efficiency Certificate NSW
Most taps, toilets, showerheads, and water appliances, such as dishwashers and washing machines, come with a water rating of up to 6 stars under the Water Efficiency Labelling and Standards (WELS) scheme. This scheme is designed to help consumers easily identify water-efficient products, enabling us to save both water and money.
The star rating on these labels provides a quick and simple way to assess the efficiency of the product, including how many litres per minute the device or appliance uses. When you see a water rating label, you can be confident that the product has been thoroughly tested and approved for use. If showerheads or taps need replacement, landlords must ensure they use compliant products to maintain water efficiency standards and retain the ability to charge tenants for water usage. At Chiswick Plumbing, we can help in the event you need shower or leaking tap repairs to meet water efficiency test compliance.
Tenants can also conduct a water efficiency test on taps and showerheads to ensure they meet the required standards by following these steps:
- Place a bucket under the tap.
- Turn the tap on fully for one minute.
- Measure the amount of water collected.
If the amount of water collected is under 9 litres, the tap is considered to be in compliance with the standards.
How Chiswick Plumbing Can Help with Water Compliance Certificate NSW
Whether you’re purchasing your first investment property or maintaining an existing one, Chiswick Plumbing can help ensure your plumbing infrastructure remains compliant and in top condition - especially in cases of
emergency plumbing repair. It's important to note that landlords or agents who interfere with utilities such as electricity, gas, or water, without a valid reason like safety concerns or necessary maintenance and repairs, would be in breach of the tenancy agreement.
Pre-Purchase Plumbing Inspection and Water Efficiency Test
A pre-purchase plumbing inspection is essential for evaluating all taps and appliances on a property to ensure they comply with standards, as well as identifying any hidden issues within the plumbing infrastructure, such as broken or blocked drain repair. If any problems are found, such as a lack of water-efficient devices, we can provide recommendations on what needs to be replaced or repaired, allowing you to factor these considerations into your offer and price negotiations.
Tenants have the right to file a complaint with NSW Fair Trading if a landlord or agent interferes with the utility supply. They can also seek assistance if they are charged for water that isn’t separately metered.
service@chiswickplumbing.com.au
PO Box 84, Terrey Hills NSW 2084
170 George Street, Concord West NSW 2138, Australia
CHISWICK: ABN 12 520 362 336 | Lic. No. 379490C
NETWORK: ABN 20 663 487 536 | LIC 467374C