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INFORMATION REGARDING MINIMUM ENERGY EFFICIENCY STANDARDS FOR RENTALS

INFORMATION REGARDING MINIMUM ENERGY EFFICIENCY STANDARDS FOR RENTALS
INFORMATION REGARDING MINIMUM ENERGY EFFICIENCY STANDARDS FOR RENTALS:
 

Some questions answered at a recent webinar hosted by REIACT Real Estate Institute of ACT.  It is important to note, your property management teams are across all these changes. Please work closely with them to ensure your property is compliant.  1. Why has the ACT government implemented a minimum energy efficiency standard for rental homes?   Many Canberrans, often those with the least capacity to pay, are living in rental homes that have poor energy efficiency and are expensive to heat and cool.

  • This exacerbates their financial stress; and/or 
  • Negatively impacts on their health and wellbeing   

2. The Minimum Energy Efficiency Standard for Ceiling Insulation in Rental Homes requires… 

Rental homes with no ceiling insulation or existing ceiling insulation rated less than R2 need to have ceiling insulation installed or upgraded to a minimum R value of R5. 

  • Rental homes with ceiling insulation rated at R2 or higher will not require any upgrades as they already meet the requirements. 

  • We estimate that around 60% of rental properties will already meet the standard or be exempted. Properties built after 1997 are likely to already meet the standard.   

3. Support available for property owners 

Private rental providers: To assist with upfront costs, eligible rental providers will be able to access no interest loans up to $15,000 through the Sustainable Household Scheme. More information on support will be available by early 2023. 

Community Housing Providers: The Home Energy Support Program (will provide a full rebate for the cost of insulation upgrades to not-for-profit community housing providers and partial rebates of up to $2,500 per dwelling for rental providers registered under the Community Land Tax Exemption Scheme.  Key Dates:   

  • 1 April 2023 - Regulation commences and minimum standard come into effect. All rental advertisements and new leases must indicate whether or not a rental home complies (or has an exemption). 

  • From 1 April 2023 - When a new lease is signed, the rental home must comply with the standard within nine months of signing (unless there is an exemption) 

  • 30 November 2026 - End of the phase in period. Rental homes leased prior to 1 April 2023 who have not renewed their lease must comply with the standard by this date. 

  • From 1 December 2026 - All rental homes that enter the rental market must comply within three months of signing a lease agreement. 

4. From the 1st April rental ads must state whether or not the property meets the minimum ceiling insulation standard. It is recommended that this information be added to the existing requirement to state the EER and should state: 

  • “The property complies with the minimum ceiling insulation standard”; 

  • “The property does not comply with the minimum ceiling insulation standard” or 

  • “The property has a valid exemption and is not required to comply with the minimum ceiling insulation standard.”   

5. How do I check the level of insulation is a rental home?  

  • If the property has been built since 1997 and has insulation that has not been significantly disturbed, you may assume it meets the standard. 

  • Check the property’s Energy Efficiency Rating (EER), that was provided with your property contract.  

  • If you know the type and thickness of the insulation installed, you can estimate the R-value. For safety reasons you should not enter the roof space unless you have appropriate training.   

Contact your Property Management team to have your property assessed and determine your R-value. Only approved installers with EEC certification comply to meet the standard for approval. Documentary evidence is required.    

Factsheets 

 To stay informed by checking the ACT government website for updates: https://www.justice.act.gov.au/renting-and-occupancy-laws/energy-efficiency-standards-for-rental-homes

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