Water Usage Charges (NSW Rentals)

Landlords can pass on water usage charges to tenants if the property meets NSW water efficiency standards and this is stated in the lease.

Water Usage Charges (NSW Rentals)

In New South Wales, water usage charges in a residential tenancy refer to the amount a tenant pays for the actual water they consume during their lease period. These charges are separate from water supply or service charges, which are typically paid by the landlord.

Water usage can only be passed on to tenants if specific legal conditions are met under the Residential Tenancies Act 2010.

When Tenants Must Pay Water Usage

A tenant can be required to pay for water usage only if all three conditions are met:

1. The rental agreement states the tenant must pay for water usage
   The lease must clearly specify that the tenant is responsible for water consumption charges.
2. The property is separately metered
   The premises must have its own water meter so the tenant’s usage can be accurately measured.
3. The property meets water efficiency standards
   The property must comply with NSW water efficiency requirements.

NSW Water Efficiency Requirements

For a landlord to charge tenants for water usage, the property must have:

Bathroom

• Shower heads with maximum 9 litres per minute flow rate

Kitchen

• Internal cold water taps and single mixer taps with maximum 9L/min flow rate

Toilet

• Dual flush toilet with:
• • Maximum 4.5L full flush
  • Maximum 3L half flush

These requirements ensure tenants are not paying excessive water costs due to inefficient fixtures.

What Real Estate Agents and Tenants Should Look Out For

1. Lease Agreement Wording

Check that the tenancy agreement specifically states water usage is payable by the tenant. If this clause is missing, tenants cannot be charged.

2. Water Efficiency Certificate or Declaration

Agents should confirm the property complies with water efficiency standards. This is often documented in property management records.

3. Separate Metering

If a property shares a meter with another dwelling, tenants generally cannot be charged individually for water usage.

4. Billing Timeframes

Landlords or agents must provide tenants with a copy of the water bill and allow at least 21 days to pay.

5. Charging Only for Usage

Tenants can only be charged for:

• Water usage (consumption)

Landlords remain responsible for:

• Water supply charges
• Sewerage charges
• Service charges

Common Issues and Disputes

Typical problems that arise include:

• Tenants being billed when the property is not water efficient
• Charging tenants supply or sewerage charges incorrectly
• Billing without providing a copy of the water bill
• Charging for water when the property is not separately metered

Disputes are usually handled through NSW Civil and Administrative Tribunal if tenants challenge the charges.

How Agents Calculate Tenant Water Bills in NSW

In NSW property management, real estate agents usually pass on only the water usage portion of the bill to the tenant. The process is straightforward but must follow the rules under the Residential Tenancies Act 2010.

Below is the typical method agents use.

Receive the Water Bill

The landlord or agent receives the quarterly bill from Sydney Water, Hunter Water, or the relevant water authority.

A water bill normally contains three sections:

• Water usage (consumption)
• Water service charge (supply)
• Sewerage service charge

Only water usage can be charged to the tenant.

Example bill breakdown:

Tenant pays: $78.20 only

✅ Quick Rule:
Tenant pays only water consumption and only for the days they lived in the property.