A commonly asked question by landlords is around passing on the water usage charges to their tenants. In NSW, state laws determine who is responsible for paying for the water usage at a property.
There are several measures to meet to be able to pass on the water usage charges to your tenant and are defined in both section 3 (definitions) and section 39 of the Residential Tenancy Act.
Under section 39 of the Act, landlords can only ask a tenant to pay water usage charges if:
- the property is separately metered (or water is delivered by vehicle, such as those with water tanks on rural properties), and
- the property meets the prescribed water efficiency measures (as outlined in clause 10 of the regulation), and
- the charges passed on are not more than the amount the landlord has been billed by the supplier.
Separately Metered
The definition of 'separately metered' under section 3 gives further clarity as to these circumstances. For water usage charges, a rental property is considered to be separately metered if the water meter:
- has been appropriately installed at the property
- measures the amount of water supplied or used only at the property
- allows a separate bill to be issued by the supplier for all charges for the supply and use of the utility or water at the property.
Landlords cannot pass on water usage charges if the meter installed on the property does not meet these criteria. For example, suppose there is no separate water meter for the rented property (as is the case with blocks of units or granny flats that use a small gauge or 'clicker' at some point along the water delivery system). In that case, a tenant cannot be charged for water usage. Such 'flow meters' are not read by a water supply authority simultaneously as a revenue meter for which a bill is issued, introducing the potential for tenants to be inaccurately charged. The definition of 'separately metered' was introduced to ensure that the tenant will only pay for the water they have used. The water usage is measured in a clear, consistent and reliable way.
Water Efficiency Standards
A property is only considered water efficient if it meets these standards.
| Water efficiency measures | Required standard |
| No leaking taps or toilets | No leaking taps or toilets anywhere on the property at the start of the tenancy and whenever the other water efficiency measures are installed, repaired or upgraded |
| Shower heads | Maximum flow rate of 9 litres per minute |
| Internal cold water taps and single mixer taps for kitchen sinks or bathroom hand basins | Maximum flow rate of 9 litres per minute |
| Dual flush toilets | From 23 March 2025: all toilets on the property are dual flush and have a minimum 3-star WELS rating |
The 9 litres per minute flow rate does not apply to other taps in the property, including bathtub taps, laundry taps, outside taps for the garden, or taps for washing machines and dishwashers.
Proving Water Efficiency
Water efficiency measures should appear on the condition report . Tenants can ask the landlord or agent to provide some evidence.
If the tenant would like to check that the property meets the minimum standards, they can turn the tap on completely and the water flow rate should be less than 9 litres in a minute.