Minimum Standard Regulations 2025

Minimum Standard Regulations 2025

The Victorian Government is introducing new minimum energy efficiency and safety standards for rental properties and rooming houses under the Residential Tenancies and Residential Tenancies (Rooming House Standards) Amendment (Minimum Energy Efficiency and Safety Standards) Regulations 2024.  The changes form part of the Government’s broader housing and climate objectives and will be implemented in stages from 1 March 2027. 

While the REIV supports the goal of improved housing standards, it has consistently highlighted the need for realistic timelines, financial support, and clear guidance to ensure these new obligations are workable for rental providers and property managers. The REIV made a formal submission to the Victorian Government outlining its position on the proposed reforms. 


Advocacy Position 


In its submission to the Victorian Government, the REIV supported the overall objectives of improving energy efficiency and tenant safety but recommended a balanced implementation framework to avoid unintended impacts on rental supply. 

The REIV’s key recommendations included: 

  • Providing financial assistance and incentives such as rebates or tax concessions for upgrade costs. 

  • Extending implementation timeframes to allow for planning and cost management. 

  • Offering clear and accessible exemption criteria for properties where compliance is impractical or disproportionately costly. 

  • Delivering industry training and resources to support consistent understanding and compliance. 

  • Ensuring effective communication and education for both rental providers and renters about new obligations and support programs. 

These measures are intended to ease the transition, promote voluntary compliance, and prevent further loss of rental housing stock. 


Progress


Following public advocacy, including the REIV’s formal submission, the Victorian Government has delayed the implementation dates for many upgrades from the originally proposed 30 October 2025 to 1 March 2027, introduced broader exemptions (including for high-cost works, limited space, or structural restrictions, and ensured every property upgrade will be eligible for discounts via the Victorian Energy Upgrades (VEU) program 

RequirementChangeStart Date
Ceiling insulationAt the start of a new rental agreement or conversion to a month-to-month agreement, rental providers must install ceiling insulation in spaces where it does not currently exist.1 March 2027
Water-efficient showerheadsAt the start of a new rental agreement or conversion to a month-by-month agreement, rental providers must install 4-star showerhead/s1 March 2027
Efficient cooling systemsAt the start of a new rental agreement, or conversion to a month-by-month agreement, rental providers must install energy-efficient cooling in the main living area.1 March 2027
Efficient heating systemsWhen existing heating systems permanently fail, rental providers must replace them with energy-efficient ones.1 March 2027
Efficient hot water replacementsWhen existing hot water systems permanently fail, rental providers must replace them with energy-efficient ones.1 March 2027
DraughtproofingAt the start of a new rental agreement, or conversion to a month-by-month agreement, rental providers must draughtproof all external doors, windows and unsealed wall vents.1 July 2027
Mandatory coolingAll rental properties must have energy-efficient cooling in the main living area. This will apply regardless of the date a rental agreement was entered into or commenced unless a specific exemption applies.1 July 2030

REIV Training and Support 

The REIV continues to advocate for fair and practical regulations that maintain housing supply and support investor confidence, while keeping compliance achievable for property professionals. To assist members with the transition to new minimum energy efficiency standards, the REIV will deliver training and guidance sessions focused on the operational impact of new rental regulations.  

Essential Resources

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