In June, the Victorian Government opened consultation on proposed amendments to the Residential Tenancies Regulations 2021 and the Residential Tenancies (Rooming House Standards) Regulations 2023.

The amendments propose minimum standards for ceiling insulation, draught proofing, hot water systems, cooling, an uplift of current standards for heating in rentals and a new heating standard for rooming houses.

Climateworks Centre welcomes the Victorian Government’s commitment to improve the residential building sector’s energy performance through the proposed regulatory amendments and the Gas Substitution Roadmap.

Improving the energy efficiency of rental properties and rooming houses is particularly important given occupants include vulnerable people facing disadvantage and members of society at risk of missing out on the health and wellbeing benefits and cost savings that better home energy efficiency can provide. 

With the population of renters increasing, introducing minimum standards would be a positive step towards Victoria’s net zero targets, healthier homes and lower bills for Victorian residents.

These standards are essential and are a win for the climate and renters.

We see an opportunity for the Victorian Government to deliver even greater benefits by streamlining some aspects of the regulations and making them inclusive for a higher number of rental properties. 

Climateworks’ Renovation Pathways program is the evidence base underpinning our response

Climateworks’ Renovation Pathways program has demonstrated the economic benefits and emissions reduction impacts of thermal upgrade packages and switching gas appliances to electric equivalents.

We modelled the costs and benefits of thermal upgrade packages for low-performance homes.

Recognising that many homes have some but inadequate insulation, our modelling assumes ceiling insulation of R0.25 and finds significant benefits available to Victorians from better thermal shell performance.

These results form the evidence base for our recommendations.

Using CSIRO data, our analysis is based on research by RMIT and Race for 2030 and includes results specific to Victoria’s climate zones. 

Our preferred options in response to the RIS and suggested improvements are outlined below. 

Submission summary 

Climateworks recommends the regulations be passed and suggests the following amendments:

  • Include provisions to mandate a minimum level ceiling insulation of at least R4 in rental properties that currently have ceiling insulation below R2.
  • Include a time frame for all rental properties to meet minimum standards for ceiling insulation and draught proofing. Draught proofing measures should explicitly ensure adequate moisture control.
  • Include a requirement that all fixed heating systems be switched to an electric system by a specific date regardless of the remaining technical life of the gas heating system. The date could allow for supply chain considerations and give the market time to prepare for the switchover.
  • Include a mandate to switch gas cooktops to induction at the end of their life, where feasible.
  • Include a requirement for real estate agents to check that minimum rental standards are met and incorporated into apps such as realestate.com. Once established, Rental Dispute Resolution Victoria could be the responsible body for enforcement, removing pressure from Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal.
  • Include financing and funding measures for social and community housing providers to upgrade their rental stock per the regulations.