From 1 March 2027, new minimum energy efficiency and safety standards will begin rolling out across Victoria for rental properties and rooming houses. These standards are designed to ensure homes are safer, more comfortable, and more energy-efficient – reducing costs for renters and supporting Victoria’s transition to net zero.
The requirements will apply at different stages, depending on whether appliances reach the end of their life, or when a rental agreement begins or changes. Full compliance with certain standards will be mandatory by 1 July 2030.
Exemptions will apply where it is deemed unreasonable to meet a standard. These are outlined in the regulations and may cover situations such as building type, heritage restrictions, or technical limitations.
Key Standards and Timeline
From 1 March 2027 – When Existing Appliances Reach End of Life
- Heating and Hot Water
- Rental providers must replace existing appliances with energy-efficient electric systems once current appliances reach the end of their service life.
- This ensures renters will gradually benefit from efficient, modern systems as older units are phased out.
From 1 March 2027 – At the Start of a Rental Agreement (or Switching to Periodic Agreement)
- Cooling
- Providers must install energy-efficient fixed cooling in the main living area.
- Ceiling Insulation
- Where no insulation exists, ceiling insulation with a minimum R-value of 5.0 must be installed.
- Shower Heads
- At least one 4-star-rated shower head must be installed, improving water efficiency and lowering energy bills.
From 1 July 2027 – At the Start of a Rental Agreement (or Switching to Periodic Agreement)
- Draughtproofing
- Rental providers must draughtproof external doors, windows, and wall vents to improve comfort and reduce energy loss.
From 1 July 2030 – All Rental Agreements
- Cooling
- By this date, all rental agreements must meet the requirement for energy-efficient fixed cooling in the main living area, regardless of when the tenancy began.
Exemptions
The regulations recognise that in some cases, achieving compliance may be unreasonable. Exemptions may apply where:
- The building’s design or structure prevents installation.
- Heritage protections limit modifications.
- The cost is excessive compared to the expected benefits.
- Other technical or site-specific barriers exist.
Why These Standards Matter
- For renters: Homes will be more comfortable, healthier, and cheaper to run.
- For providers: Upgrades protect property value, improve tenant satisfaction, and ensure compliance with law.
- For the environment: A shift away from gas and inefficient systems supports Victoria’s net zero targets.
For more information, please visit the Consumer Affairs Victoria website.
How Cliquey Realty Can Help
At Cliquey Realty, we stay ahead of regulatory changes so you don’t have to. These new standards may feel overwhelming, but with our guidance, you can:
- Understand exactly what applies to your property and when.
- Plan and budget for upgrades well before deadlines.
- Access our trusted network of trades and suppliers to ensure compliant, energy-efficient installations.
- Communicate changes clearly to tenants while maintaining positive relationships.
Whether you’re a rental provider, agent, or managing multiple properties, Cliquey makes compliance simple and stress-free.
Get in touch today to talk about how we can help you prepare for 2027 and beyond.
