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Renters and landlords divided on energy efficiency reforms
About the study
The Victorian Government recently completed public consultation on proposed minimum energy efficiency standards for rental properties, with the aim of improving comfort and living costs for renters.
Final standards are expected to be released in October 2024, with implementation to begin in October 2025. The reforms are part of a December 2023 update to the Gas Substitution Roadmap, aimed at navigating Victoria’s path to net zero emissions.
Under the proposed reforms, rental providers will be obligated to:
- Install ceiling installation, draught sealing and weather seals on all external doors.
- Replace hot water and heating systems with energy-efficient electric appliances when their current appliance reaches end of life.
- Install four-star shower heads in all showers.
- Install three-star cooling systems in the main living area.
The proposed reforms follow several major upheavals in the rental property market that have adversely affected renters and rental providers alike. Rental providers have dealt with rising interest rates, rental caps restricting rent increases to once every six to 12 months, Victoria’s COVID Debt Levy - which imposes increased taxes on property owners - and tenancy law reforms designed to improve the quality of rental homes across Australia. These have led to many rental providers selling up, leaving capital cities at a –2 per cent vacancy rate and rental prices at a record high.
Green.com.au commissioned a survey of an an independent, nationally representative panel 1006 renters, rental providers and owner-occupiers to gauge support for this latest change in the midst of such a climate.
Respondents were asked if they thought the reforms were a good move by the Victorian Government, and if they thought other State Governments should adopt them.
Do you agree with the Victorian reforms, and should they be adopted in other states?
Respondents overwhelmingly supported the adoption of reforms across the states with 60 per cent calling for national improvements. On fifth (21%) felt the reforms were appropriate for Victoria but not necessary for other states, and 19 per cent did not support the reforms at all.
Yes, and other states should adopt these reforms
Yes, it is good for Victoria, but I don’t think other states need to adopt it
No, I don’t support these reforms
By property ownership status.
Rental providers are the least likely to support the energy efficiency reforms, with almost a third (31%) opposing them being implemented anywhere in Australia. By comparison, only 8 per cent of renters took this stance, suggesting that rental providers were more impacted by the extra expense and time needed to comply with the new standards. Almost a quarter of owner-occupiers (23%) also opposed the reforms.
Conversely, renters and owner occupiers overwhelmingly supported the reforms – and want them rolled out across all states – at 67 per cent and 60 per cent respectively. In comparison, just one third (33%) of rental providers backed the reforms across all states.
A further 36 per cent of rental providers accepted the reforms in Victoria, but did not think they were needed in other states. A quarter (25%) of renters also backed this sentiment, while only 17 per cent of owner occupiers supported this sentiment.
Yes, and other states should adopt these reforms
Yes, it is good for Victoria, but I don’t think other states need to adopt it
No, I don’t support these reforms
By State.
ACT respondents overwhelmingly supported the adoption of energy efficiency reforms beyond Victoria, with 74 per cent advocating for the same changes across all states. Queenslanders are close behind, with 62 per cent wanting the standards implemented across all states, followed by Victorians at 60 per cent.
The option to keep reforms within Victoria was less popular across all states, with just 21 per cent of respondents backing this and little discrepancy between the states.
South Australians are the most likely to reject reforms anywhere - at 22 per cent - followed by NSW respondents (at 20%), Victorians and Queenslanders (each at 18 per cent), West Australians (at 15%) and the ACT (at 13%).
Yes, and other states should adopt these reforms
Yes, it is good for Victoria, but I don’t think other states need to adopt it
No, I don’t support these reforms
By age.
Opposition to energy efficiency reforms was highest among those aged 45-54 and 65-plus, with a quarter – 25 and 24 per cent respectively – opting not to back reforms in Victoria or any state.
This is in contrast to just 7 per cent of 18-to-24-year-olds, who are one of the largest groups of renters (at 55%). The older generations are more likely to own their homes, with 79 per cent of over-65s being owner occupiers.
The generation between the opposing groups – those aged 55 to 64 – are the biggest supporters of changes across the states, with 65 per cent saying yes to broader reforms. Two thirds (66%) of this age group are owner occupiers.
Yes, and other states should adopt these reforms
Yes, it is good for Victoria, but I don’t think other states need to adopt it
No, I don’t support these reforms
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