Home Property Australia Victoria moves to implement new minimum rental standards

Victoria moves to implement new minimum rental standards

  • June 05, 2024
  • by Property Australia
Minister for Consumer Affairs Gabrielle Williams

The Victorian Government has launched the consultation process for proposed new minimum rental standards which includes requirements for ceiling insulation, draughtproofing, hot water efficiency and cooling.

Under the proposed changes, rental providers would need to ensure their property meets a minimum requirement for ceiling insulation where there is no ceiling insulation already installed, has draught sealing, including weather seals on all external doors. 

Rental providers would also be required to replace hot water and heating systems with energy efficient electric appliances when their current appliance reaches end of life. 

All up, the government said renters could save $791 off their yearly energy bill via these changes.

The standards will also introduce a 3-star cooling rating for systems in the main living area, 4-star shower heads in all showers and blind cord anchors.

Minister for Consumer Affairs Gabrielle Williams said the proposed standards will make rental properties safer and more comfortable.

Property Council of Australia Victorian Executive Director Cath Evans said the government “must provide increased subsidies and incentives so these costs are not passed onto the tenant”.

“Without this support, we risk a further contraction of supply in the rental market,” she said.

“Victoria is currently in the midst of a severe housing affordability crisis, being felt most keenly by renters as they grapple with wider pressures from cost of living,” she said.

“While we support improvements in living conditions and energy efficiency for renters, owners are already significantly burdened by massive increases in land tax, council rates and insurance premiums as well as increased interest rates.”

New standards will be phased in, with compliance commencing from 30 October 2025.