Minimum energy efficiency standards exemptions

Heating

Where an exemption applies, an energy efficient fixed heater does not need to be installed in the main living area but a fixed heater in good working order must still be installed in or have an outlet in the main living area.

Exemption	Details
Cost of installation significantly higher than the average cost	If the cost of installation is significantly higher than the average cost in a Class 1 building (a residential dwelling, a detached house, townhouse, or small boarding house) or Class 2 building (a multi-unit residential structure) equivalent to your rental property. Some works are not considered part of the cost of installation. This includes: the cost of electrical work required to enable installation; and the cost of upgrading an electrical switchboard to accommodate additional electrical load.
Augmentation of a transmission or distribution system	If the installation requires augmentation of a transmission or distribution system to provide more than a basic connection service or a standard connection service.
Pre-existing heating in good working order	If the current fixed heating is either: a non-ducted air conditioner or heat pump with a 2 star or above heating rating; or a gas space heater with a 2 star or above heating rating; or a ducted heating or hydronic heating system; or a domestic solid fuel burning appliance; or a fixed heater for which the fuel source is liquefied petroleum gas The existing heating must be in or have an outlet in the main living area.
Replacement under warranty	If the current system fails while it’s under a manufacturer, supplier or installer warranty, you can replace it with an identical system, which can be one of the following: a non-ducted air conditioner or heat pump with a 2 star or above heating rating; or a gas space heater with a 2 star or above heating rating; or a ducted heating or hydronic heating system with an outlet in the main living area; or a domestic solid fuel burning appliance; or a fixed heater for which the fuel source is liquefied petroleum gas.
Owners corporation rules prohibit installation	If the property is subject to owners corporation rules which don’t allow installation of the appliance.
Registered place under Heritage Act	If the property is included in the Victorian Heritage Register and you require a permit to alter the relevant features of the property, which was refused by Heritage Victoria in accordance with Part 5 of the Heritage Act 2017.
Compliance with another act or local law	If compliance with any other Act or local law makes the cost of installation prohibitive.
Not reasonably practicable	If it is not reasonably practicable to install an energy efficient fixed heater in your rental property.
Identical type replacement	If the current heating system is a fixed heater which is either: a domestic solid fuel burning appliance a fixed heater for which the fuel source is liquified petroleum gas. It can be replaced with an identical type appliance.

Cooling

An energy efficient fixed cooler does not need to be installed in the main living area if it is unreasonable to install. Where it is unreasonable, a fixed cooler in good working order must still be installed in or have an outlet in the main living area.

Without limiting the grounds on which it may be unreasonable to install an energy efficient fixed cooler, it is unreasonable of one of the grounds listed below applies.

Exemption	Details
Higher than average installation cost	If the cost of installation is significantly higher than the average cost in a Class 1 building (a residential dwelling, a detached house, townhouse, or small boarding house) or Class 2 building (a multi-unit residential structure) equivalent to your rental property Some works are not considered part of the cost of installation. This include: the cost of electrical work required to enable installation; and the cost of upgrading an electrical switchboard to accommodate additional electrical load.
Pre-existing fixed cooler	If there is a pre-existing fixed cooling appliance in good working order that was installed before 1 March 2027. Pre-existing fixed cooling includes ducted evaporative cooling.
Replacement under warranty	If the current system fails while it’s under a manufacturer, supplier or installer warranty, it can be replaced it with an identical system.
Identical type replacement	If there is an existing ducted evaporative fixed cooler, it can be replaced with an identical system. Augmentation of a transmission or distribution system If the installation of an energy efficient fixed cooling appliance will require augmentation of a transmission or distribution system to provide more than a basic connection service or a standard connection service.
Owners corporation rules prohibit installation	If the property is subject to owners corporation rules which don’t allow installation of the appliance.
Registered place under Heritage Act	If the property is included in the Victorian Heritage Register and you require a permit to alter the relevant features of the property, which was refused by Heritage Victoria in accordance with Part 5 of the Heritage Act 2017.
Compliance with another act or local law	If compliance with any other Act or local law makes the cost of installation prohibitive.

Water heaters

An energy efficient water heater does not need to be installed if it is unreasonable to install. A reasonable supply of hot and cold water must still be available to the kitchen, laundry and bathroom facilities of the property.

Without limiting the grounds on which it may be unreasonable to install an energy efficient water heater, it is unreasonable if one of the grounds listed below applies.

Exemption	Details
Higher than average installation cost	If the cost of installation is significantly higher than the average cost in a Class 1 building (a residential dwelling, a detached house, townhouse, or small boarding house) or Class 2 building (a multi-unit residential structure) equivalent to your rental property Some works are not considered part of the cost of installation. This includes the cost of electrical work required for the installation. If the electrical switchboard at the property needs to be upgraded to accommodate additional electrical load, this cost is considered part of the overall cost of installation.
Pre-existing water heater	If there is a pre-existing fixed water heater in good working order that supplies heated water to the kitchen, laundry and bathroom facilities. This includes pre-existing fixed water heaters supplied by liquefied petroleum gas (LPG).
Replacement under warranty	If the current system fails while it’s under a manufacturer, supplier or installer warranty, it can be replaced it with an identical system.
Owners corporation rules prohibit installation	If the owners corporation rules for the property don’t allow the installation of an energy efficient water heater appliance.
Compliance with another act or local law	If compliance with any other Act or local law makes the cost of installation prohibitive.
Centralised system	If heated water to the kitchen, laundry and bathroom facilities is supplied by a centralised system.
Temporary water heater	If a temporary water heater is installed for no more than 60 days.
Augmentation of a transmission or distribution system	If the installation of an energy efficient hot water appliance will require augmentation of a transmission or distribution system to provide more than a basic connection service or a standard connection service.
Registered place under Heritage Act	If the property is included in the Victorian Heritage Register and you require a permit to alter the relevant features of the property, which was refused by Heritage Victoria in accordance with Part 5 of the Heritage Act 2017.
Identical type replacement (LPG only)	If an existing water heater is supplied by liquefied petroleum gas (LPG) it can be replaced with an identical system.

Ceiling insulation

Ceiling insulation isn’t required in:

ceiling areas with existing insulation batts, blankets, rigid boards or loose fill. This can be existing insulation of any R-value
external parts of the premises. For example, garages, outbuildings and alfresco areas
internal ceilings. For example, the ceiling of the lower floor of a double storey home or the lower floors of an apartment complex
areas where it is unreasonable or unsafe to install ceiling insulation.

Without limiting the grounds on which it may be unreasonable or unsafe to install ceiling insulation in an area of the property, it is unreasonable if one of the grounds listed below applies.

Exemption	Details
Higher than average installation cost	If the cost of installation is significantly higher than the average cost in a Class 1 building (a residential dwelling, a detached house, townhouse, or small boarding house) or Class 2 building (a multi-unit residential structure) equivalent to your rental property. The cost of electrical work is not considered part of the cost of installing ceiling insulation. For example, if any electrical rectification or replacement of damaged, deteriorated or non-compliant cables in the ceiling space is required.
Common property	If the roof cavity of the property is in a Class 2 building (a multi-unit residential structure) and is common property under a plan of subdivision. For example, the roof cavity is common property and is managed by an owners corporation.
Owners corporation rules prohibit installation	If the property is subject to owners corporation rules which don’t allow installation of the appliance.
Compliance with another act or local law	If compliance with any other Act or local law makes the cost of installation prohibitive.
Substantial building work or damage	For example, if the property has skillion roofs, very low-pitched roofs and roof cavities that cannot be accessed without removing the ceiling lining or roofing material.
Risk to health or safety	If installing ceiling insulation creates health or safety risks that are greater than the risks that are normally acceptable when ceiling insulation is being installed.
Registered place under Heritage Act	If the property is included in the Victorian Heritage Register and you require a permit to alter the relevant features of the property, which was refused by Heritage Victoria in accordance with Part 5 of the Heritage Act 2017.

Draughtproofing

There are instances where draughtproofing cannot be installed, or it is unsafe to do so.

Remember, if you have any gas appliances, fixtures or fittings in the property, you need to get a licensed or registered gasfitter to assess if it is safe to draughtproof the property.

Exemption	Details
Flueless and open-flued appliances	If the property has a flueless space heater or open-flued gas appliance.
Flueless cooktop without rangehood	For draughtproofing in kitchens, if the kitchen in the property has a flueless gas cooking appliance without a rangehood.
Owners corporation rules prohibit installation	If the property is in a Class 2 building (a multi-unit residential structure) and is subject to owners corporation rules that don’t allow installation of sealing or weather-stripping products to external doors.
Registered place under Heritage Act	If the property is included in the Victorian Heritage Register and you require a permit to alter the relevant features of the property, which was refused by Heritage Victoria in accordance with Part 5 of the Heritage Act 2017.
Otherwise unreasonable to draughtproof	There may be other circumstances where draughtproofing the property or the kitchen area is unreasonable.

Shower heads

From 1 March 2027, rental providers must install water-efficient shower heads in all showers. This applies at the start of a new rental agreement, or when an existing agreement converts to a month-to-month agreement.

What to install	Minimum requirements	When it applies
Water-efficient showerhead/s in all showers	Minimum 4-star WELS (Water Efficiency Labelling and Standards) rating	At the start of a new rental agreement, or conversion to a month-to-month agreement

What is a WELS rating?

Water Efficiency Labelling and Standards (WELS) is the national water efficiency rating system for plumbing products. WELS star ratings are displayed on product packaging.

Exemptions

You may be exempt from this standard if the age, nature or structure of the plumbing in the rented premises means a 4-star rated shower head can't be installed or when installed will not operate effectively.

If you can't install a 4-star shower head, you must install a 3-star shower head instead.

Find out how to get a VEU discount shower head upgrades.