Rental Minimum Standards — What's Changing & When

A plain-English guide for rental providers · Victorian rentals · current at July 2026

The big idea: you generally do not have to rip out and replace working equipment the moment a rule starts. Each new standard is triggered one of two ways —

🔑 At the start of a new lease

A new fixed-term agreement, or a rollover to a periodic (month-to-month) lease. Applies to: cooling, ceiling insulation, showerheads, draughtproofing.

🔧 When an appliance dies

Heating and hot water only need upgrading when the existing unit reaches end of life and is replaced — with an efficient electric unit.

FROM 1 MARCH 2027

🔥 Heating — efficient electric on replacement TRIGGER: END OF LIFE

A working heater can stay. But once the main-living-area heater reaches end of life and is replaced, the new one must be an energy-efficient electric heater — a reverse-cycle air conditioner / heat pump. No more like-for-like gas replacements.

What you do: nothing until it fails — then replace with a reverse-cycle unit (VEU discounts available).

🚿 Hot water — efficient electric on replacement TRIGGER: END OF LIFE

When the hot water system serving the kitchen, laundry and bathroom reaches end of life, replace it with an efficient electric unit (a heat-pump hot water system) — unless it's unreasonable (e.g. a centralised system, or cost far above normal). A temporary unit is allowed for up to 60 days.

What you do: nothing until it fails — then fit a heat-pump hot water system (VEU discounts available).

❄️ Cooling in the main living area TRIGGER: NEW LEASE

At the start of a new lease, the main living area needs an energy-efficient fixed cooler (typically a reverse-cycle air conditioner) — or a fixed cooler if it's unreasonable to install an efficient one. Portable units don't count.

What you do: before signing a new lease from 1 Mar 2027, make sure the living area has fixed cooling in good working order.

❄️ Looking ahead — from 1 July 2030: efficient electric cooling must be in the main living area of all rental homes, whether or not a new lease has started (this is the one change not tied to a new lease).

🧱 Ceiling insulation TRIGGER: NEW LEASE

At the start of a new lease, ceilings that have no insulation must have insulation installed — a minimum R5.0, fitted by an accredited installer, after a licensed electrician has done a pre-insulation electrical safety check of the roof space.

Already have insulation? You're fine. Existing ceiling insulation of any age or R-value is accepted — you don't have to remove or upgrade it. The R5.0 rule only applies to new insulation in bare ceilings.

What you do: check whether the ceiling is insulated. If it's bare, arrange the electrical check + insulation before a new lease from 1 Mar 2027.

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Rental Minimum Standards — What's Changing & When (continued)

FROM 1 MARCH 2027 (continued)

💧 Water-efficient showerheads TRIGGER: NEW LEASE

At the start of a new lease, where a shower is present, fit a 4-star water-efficient showerhead (about 6–7.5 litres/min). A 3-star head is only acceptable where a 4-star can't be installed, or wouldn't work, because of the age or type of plumbing.

What you do: a cheap swap — fit a 4-star showerhead before a new lease from 1 Mar 2027 (VEU discounts available).

FROM 1 JULY 2027

🚪 Draughtproofing TRIGGER: NEW LEASE

At the start of a new lease, seal draughts: external doors and windows get weather-stripping, and unsealed wall vents are closed off — including in the kitchen. Some exemptions apply (e.g. where a flueless gas heater or open-flued gas appliance is installed, a flueless gas cooktop without a rangehood, owners-corporation rules, or a heritage property).

What you do: a low-cost job — add door/window seals and vent covers before a new lease from 1 Jul 2027 (VEU discounts available).

✅ Good to know

"Start of a new lease" means a new fixed-term agreement or a rollover to a periodic (month-to-month) lease.
"Unless unreasonable" — the rules have common-sense exemptions (a compliant unit already installed, owners-corporation rules, heritage restrictions, or cost well above normal). Keep evidence if you rely on one.
Fixed, not portable — plug-in heaters and portable coolers don't count. The heater/cooler must be permanently installed in, or have an outlet in, the main living area.
Existing insulation counts — any R-value is accepted; you never have to upgrade insulation that's already there.

💰 Money help — Victorian Energy Upgrades (VEU): discounts are available for many of these upgrades, including swapping a gas space heater for a reverse-cycle air conditioner, replacing gas hot water with a heat-pump system, and for showerheads, draughtproofing and home energy assessments. Ask us or your installer how to claim.

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