Yes, you can charge tenants for water in NSW, but only when four conditions stack up: the property is separately metered (or water is delivered by vehicle), the required water-efficiency measures are met, you charge no more than your own supplier bill, and your tenancy agreement states the tenant pays usage. Since 23 March 2025, “meeting the measures” means dual-flush toilets rated at least 3-star WELS, taps and showerheads capped at 9 litres per minute where specified, and no leaks. Miss any one of these and you lose the right to bill until you fix it.
TL;DR:
- Landlords must ensure toilets, taps, and showerheads meet specified standards, including dual-flush toilets with at least a 3-star WELS rating and flow rates capped at 9 liters per minute.
- A property can only be billed if it has separate metering or water is delivered by vehicle, and the charges reflect the actual supplier bill without markup.
- Maintaining detailed records, including photos, receipts, and plumber reports, is essential to prove compliance if disputes arise with tenants or authorities.
- Fixing leaks and upgrading fittings before a tenancy begins minimizes compliance risks and costs, with basic repairs typically completed within a day or two.
- Ongoing compliance requires regular checks, as water efficiency standards reset with each tenant change, and professional plumbing services can streamline adherence efforts.
Table of Contents
- What the NSW water efficiency standards actually require
- When and how can you charge tenants for water in NSW?
- How do you prove compliance if a tenant disputes it?
- What should landlords do first, and what does it cost?
- Who handles disputes, and what happens if you can’t prove compliance?
- Does water efficiency compliance affect property value and rental competitiveness?
- What government resources and support are available for compliance?
- A property manager’s view on staying compliant
- How Priority Plus Plumbing helps landlords stay compliant
- Sources
- FAQ
What the NSW water efficiency standards actually require
The NSW Government’s rules on connecting and supplying water to rental properties set out exactly which fixtures fall under the water efficiency standards NSW landlords must meet before charging tenants for usage. These aren’t vague guidelines. They’re specific numbers tied to the WELS scheme, and getting them wrong is the single most common reason landlords lose a water-charge dispute.
Here’s what the regulation covers:
- Toilets: Dual-flush, minimum 3-star WELS rating, with flush volumes tested against WELS tolerances.
- Taps: Internal cold-water taps and single-mixer taps serving kitchen sinks and bathroom hand basins are capped at 9 L/min.
- Showerheads: Also capped at 9 L/min.
- Leaks: No leaking taps or toilets at the start of a tenancy or whenever repairs or upgrades are carried out.
Not every tap is covered. Bath taps, laundry troughs, outdoor taps, and taps feeding washing machines or dishwashers sit outside the flow-rate limits. That exemption catches a lot of landlords off guard. A leaking bath tap still triggers the “no leaks” rule, but its flow rate isn’t measured against the 9 L/min benchmark the way a kitchen mixer tap is.
The legal backbone here is Regulation 10 of the Residential Tenancies Regulation 2019, which prescribes these exact measures for the purposes of section 39(1)(b) of the Residential Tenancies Act. The National Construction Code’s NSW B1D2 provisions reference AS/NZS 6400, the standard underpinning WELS star ratings, which is why 9 L/min and 3-star aren’t arbitrary figures. They’re the product of a national testing standard applied at state level.
When and how can you charge tenants for water in NSW?
Meeting the water efficiency measures is only step one. You also need the billing mechanics right, or a compliant bathroom won’t save you at NCAT.
- Separate metering or vehicle delivery. The property must have its own water meter, or water is supplied by tanker/delivery, so usage is attributable to that specific tenancy.
- Water-efficiency measures met. The toilets, taps and showerheads described above must be compliant and leak-free, both at the start of the tenancy and whenever you carry out plumbing work.
- No markup. You can only pass on what your water supplier actually billed you. Charging a flat estimate or rounding up isn’t permitted.
- A written tenancy agreement clause. The lease must explicitly state the tenant is liable for water usage charges.
When you invoice a tenant, provide a copy of the supplier’s bill, or an itemised breakdown showing the meter reads and the rate charged. Vague verbal requests for “your share of the water bill” don’t hold up if a tenant challenges the charge.
Get any of these wrong and the tenant can dispute the charge. If you can’t produce evidence you met the measures on the relevant dates, you may end up refunding what you’ve already collected.
How do you prove compliance if a tenant disputes it?
NSW Fair Trading puts the burden of proof on the landlord, not the tenant. That single fact should shape how you keep records from day one, because the moment a tenant queries a water charge, you need to produce evidence fast.
Keep the following on file for every rental property:
- Condition report entries noting toilet and tap models at the start of tenancy.
- Photos of installed fixtures, including WELS star-rating labels where visible.
- Original receipts or product manuals showing the WELS rating at time of purchase.
- A written statement or report from a licensed plumber confirming flow rates and flush volumes.
- Copies of water supplier bills and meter reads for the billing period in question.
You can run a quick check yourself before calling in a professional. The NSW Government’s fact sheet on water efficiency measures recommends the bucket test: run the tap or showerhead into a bucket for 15 seconds, and if you collect more than 2.25 litres, it’s exceeding the 9 L/min limit. If the WELS label is missing, unreadable, or the fixture is old enough that you’re not certain, a licensed plumber’s measured test is the more defensible route than guessing.
Pro Tip: Store scanned copies of every plumber’s report and receipt in your digital tenancy file, not just a physical folder. If a dispute lands at NCAT months or years later, a dated, searchable file is far faster to produce than a shoebox of paper.
Remember the obligation doesn’t end once you’ve ticked the box. A leak that develops mid-tenancy cancels your right to charge for water until it’s repaired, even if the property passed every check at move-in.
What should landlords do first, and what does it cost?
Start with a walk-through, not a renovation budget. Most properties need targeted fixes rather than a full bathroom overhaul.
- Audit every tap, showerhead and toilet using the bucket test and a visual leak check. Note anything uncertain for professional testing.
- Fix leaks immediately. This is the fastest, cheapest win and removes the single biggest compliance risk.
- Swap showerheads and tap aerators first. Low-flow showerheads and aerators are inexpensive and can usually be fitted the same day.
- Replace non-compliant toilets last, since this is the costliest and most disruptive upgrade, and only where the existing unit genuinely fails the 3-star WELS threshold.
- Get a written plumber’s statement confirming the finished work meets the standard, dated and filed with your condition report.
Timeframes vary with scale. A single leaking tap is usually a same-day fix. Swapping showerheads and aerators across a property typically takes an hour or two per unit. Replacing multiple toilets across a portfolio is where you’ll need to schedule one to two weeks, depending on plumber availability and whether you’re managing several properties at once. Costs depend heavily on fixture age, access, and whether removal of old fittings is straightforward, so treat any figure you’re quoted as indicative until a plumber has actually inspected the property.
Pro Tip: Schedule upgrades between tenancies where possible. It avoids access negotiations with a sitting tenant and lets you update the condition report with fresh evidence before the next lease begins.
If a tap keeps failing the bucket test even after a fitting swap, or usage bills seem high with no obvious leak, non-invasive leak detection can find hidden pipe faults without tearing into walls.
Who handles disputes, and what happens if you can’t prove compliance?
NSW Fair Trading administers the rules, and the NSW Civil and Administrative Tribunal (NCAT) is where unresolved disputes end up. In both, the landlord carries the evidentiary burden. If a tenant challenges a water charge, you need to show the property met the required measures on the dates covered by that bill, not just that it meets them now.
- If you can’t produce a plumber’s statement, receipts, or condition-report evidence, expect to refund the disputed charges.
- Act early: if you’re unsure whether existing fixtures comply, get a licensed plumber’s assessment before a dispute arises, not after.
- Tenants seeking independent advice can contact their local Tenants’ Advice and Advocacy Service, and landlords can call NSW Fair Trading directly for guidance on specific scenarios.
Treat compliance as an ongoing duty tied to every billing cycle, not a box you tick once when a tenant moves in.
Does water efficiency compliance affect property value and rental competitiveness?
Compliant properties are simply easier to rent and easier to sell. Prospective tenants comparing similar listings increasingly notice water-efficient fittings, particularly in share houses and family rentals where water bills get split and scrutinised. A property that can lawfully charge for water usage, with clean records to back it, gives you a revenue stream that a non-compliant property cannot claim at all.
There’s a portfolio angle too. Investors assessing a rental property for purchase are starting to ask about compliance status, especially for older housing stock built well before the WELS scheme existed. A dual-flush toilet with a visible WELS label and a plumber’s statement on file is a small thing to point to during due diligence, but it removes a question mark a buyer would otherwise have to chase up themselves.
At the market level, water efficiency sits alongside energy efficiency as one of the quieter differentiators in NSW’s competitive rental market. It doesn’t carry the same weight as location or condition, but in a market where properties are compared line by line on cost of living, a place that’s already compliant, already fitted with low-flow fixtures, and already able to legitimately pass on usage charges, has a small but real edge over one that isn’t.
Fixing leaks and swapping fittings also cuts your own exposure if you’re ever liable for a portion of water use during vacancy periods, which makes the upgrade worthwhile even before you factor in the ability to charge tenants at all.
What government resources and support are available for compliance?
You don’t need to interpret the regulation from scratch. The NSW Government’s guide to improving water efficiency in rental properties breaks down which upgrades typically apply to older versus newer properties, and the accompanying fact sheet includes the bucket-test method and a checklist of acceptable evidence.
For verifying whether a specific tap, showerhead or toilet model actually meets the 3-star WELS threshold, the WaterRating portal is the official register. Search the product or brand before you buy a replacement fitting, rather than assuming a “water-saving” label on packaging means it clears the NSW threshold.
If you manage several properties and are trying to track which units have been audited, which have outstanding plumber reports, and which are due for a recheck, a field service platform used by trades can show you how plumbers themselves record jobs and issue digital reports, useful context if you’re deciding how to organise compliance paperwork across a portfolio. Larger managers overseeing shared facilities, such as strata common areas, may also find value in general washroom hygiene and maintenance guidance as a complementary checklist alongside the water-efficiency rules.
There’s no dedicated government rebate scheme specifically for this compliance work at the time of writing, so budget for the fitting and plumber costs as a standard maintenance expense rather than expecting a subsidy.
A property manager’s view on staying compliant
Compliance here isn’t a one-off form to file. It’s an ongoing duty that resets every time a tap starts dripping. The single easiest change you can make is folding a water-efficiency check into your routine inspection, alongside smoke alarms and safety switches, so a leak gets caught before it costs you the right to bill anyone.
— Peter Honey
How Priority Plus Plumbing helps landlords stay compliant
Sorting out water efficiency compliance yourself means juggling bucket tests, WELS labels, and paperwork on top of everything else on your plate as a landlord. A professional plumbing service can handle the technical side directly, so you get a defensible result without spending a weekend with a stopwatch and a bucket.
Our licensed plumbers carry out flow testing on taps and showerheads, locate and repair leaks (including hidden ones with non-invasive leak detection), and replace non-compliant toilets and fittings where needed. After the job, you receive an invoice, a written plumber’s statement confirming the work meets the required standard, and before-and-after photos you can attach straight to your condition report. That’s the exact documentation NSW Fair Trading and NCAT expect if a tenant ever questions a water charge.
If you manage a rental in Sutherland Shire or greater Sydney and you’re not certain your fixtures clear the 9 L/min threshold, book an assessment with our emergency plumbing team and get it confirmed in writing before your next tenancy renewal.
Sources
- Connection and supply of water to rental properties | NSW Government
- Residential Tenancies Regulation 2019 – Reg 10 (AustLII)
- Water Efficiency Labelling and Standards (WELS) scheme – WaterRating
FAQ
What are the requirements for a water efficiency check in NSW rental properties?
You need dual-flush toilets rated at least 3-star WELS, taps and showerheads capped at 9 L/min where specified, and no leaks, verified either with a bucket test or a licensed plumber’s report.
How much does a plumber’s compliance report cost in NSW?
There’s no fixed government fee since NSW doesn’t issue a formal “certificate”, so costs depend on the plumber’s callout and the number of fixtures tested. Ask for a quote covering the flow test, any repairs, and the written statement together.
What are the current water restrictions in New South Wales?
Restrictions vary by local water authority and change with dam levels and seasonal conditions, so check directly with your local council or Sydney Water rather than relying on a fixed rule, since this article focuses on the fixture standards rather than usage restrictions.
What’s a typical water bill for a two-person household in NSW?
Water usage costs vary significantly by household habits, property fixtures, and local supplier rates, so there’s no single reliable figure to quote; your own supplier bill for the billing period is the only accurate reference point when charging a tenant.
Can I charge my tenant for water if my property fails one of the standards?
No. If any required fixture, such as a toilet or a specified tap, doesn’t meet the standard, or there’s an unrepaired leak, you lose the right to charge for water usage until it’s fixed and documented.