If you rent your home in Australia, you probably know the feeling of cold seeping through unsealed windows on a winter night or sweltering in a stifling room during a summer heatwave. It’s the kind of discomfort few homeowners would tolerate, and yet ACOSS (The Australian Council of Social Service), in their 2025 Heat in Homes Survey Report, found that this is a daily reality baked into a housing market that continues to treat energy efficiency as an optional extra, when it’s clearly a human right, and also a basic consumer right.
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Of particular relevance to the over 30 per cent of Australian households who rent, and who are frequently in no position to upgrade their homes, is the distressing situation that a poorly insulated house, one that has no protection from the sun on hot days, one that leaks warm air in winter lifting energy consumption and bills, poses health and wellbeing risks to the tenant that is unacceptable, and drives up their daily expenses. Given that housing costs (adjusted for inflation) have increased by 50 per cent for private renters and 27 per cent for state or territory housing tenants over the past two decades, it’s no surprise that renters feel like they aren’t getting value for money from this most essential of all “products” – their home.
For years, energy inefficiency in Australian homes has quietly driven up living costs, worsened health outcomes, and entrenched inequality. And while debates about rent prices and tenancy security have rightly attracted attention, there’s been far less scrutiny of how this market fails its consumers, renters and buyers alike, by denying them both critical information and basic protections.
Suppose we’re serious about reducing cost-of-living pressures, protecting public health, and preparing for a hotter climate. In that case, Australia urgently needs two things: strong, enforceable minimum energy efficiency standards for rental properties, and mandatory public disclosure of energy performance ratings for all homes listed for lease or sale.
Minimum energy efficiency standards are a fair consumer protection
In every other essential market – food, cars, electronics – consumers are protected by minimum safety and performance standards. So why should housing, one of the most significant and unavoidable markets Australians engage with, be any different?
Right now, most rental laws only cover the barest essentials: working smoke alarms, secure locks, and a functioning toilet. Energy efficiency, which directly affects household costs, health and wellbeing, is still considered a luxury. This leaves renters at the mercy of old, poorly maintained properties with no insulation, outdated gas appliances, and no effective heating or cooling. This is not just an inconvenience; it’s a violation of consumers’ rights who should expect basic standards of living that protect their health and wellbeing.
Research from the ANU’s Crawford School of Public Policy on the effect of renting on household expenditure indicated that renters spent about 8 per cent more on energy bills than owner-occupiers because of these inefficiencies. And in a fiercely competitive market, where more than half of renters fear repercussions if they make demands on landlords, renters aren’t in a position to demand upgrades. It’s a textbook example of a market failure: landlords control property investment decisions while tenants bear the financial and physical consequences of poor energy performance.
Some governments have acted. Victoria and the ACT are leading with minimum standards, and NSW is exploring the issue as part of its consumer energy strategy. But progress elsewhere has been patchy and painfully slow, leaving millions of consumers without protection in one of their most significant financial and health-related transactions.
This inconsistency is unacceptable. Renters deserve the same consumer protections as buyers of cars, fridges, and other essentials – including assurance that what they’re paying for won’t saddle them with hidden costs or health risks.
Climate differences between regions are no excuse for inaction. Tailored standards by climate zone make sense, but every renter, everywhere, deserves the same baseline protections and the right to clear, trusted information before signing a lease or purchase contract.
Home buyers and renters need energy information
Beyond minimum standards, consumers also need transparent, reliable information to make informed choices. In every other market, we take this for granted. You wouldn’t buy a car without knowing its fuel economy. You wouldn’t purchase a fridge without seeing its energy star rating. Yet renters and home buyers are asked to sign contracts on homes, often for years, without knowing whether they’ll be liveable in a heatwave or affordable to heat in winter.
The ACT has led the way for over 20 years by requiring energy efficiency ratings for homes listed for sale. Evidence shows these ratings create incentives for owners to invest in upgrades, while helping buyers avoid costly surprises. Yet elsewhere in Australia, renters and buyers remain in the dark.
The Federal government has recently developed the national Home Energy Ratings Disclosure Framework, a long overdue consumer protection framework for reform. But unless this scheme is made mandatory, nationally consistent, and possibly even legislated at the federal level, history risks repeating itself. A similar proposal in 2011 fell apart under state government resistance. This time, anything short of a robust, enforceable framework will fail consumers again.
Imagine a world where every real estate listing included an energy efficiency rating alongside the number of bedrooms and bathrooms. Where renters and buyers could compare not just price and location, but ongoing costs and health risks. This isn’t radical. It’s standard consumer protection policy – and it’s long overdue.
What’s at stake
The benefits of energy performance standards and disclosure are clear and urgent. Australian homes are responsible for around 11 per cent of the country’s emissions, much of it from heating, cooling, and hot water in inefficient properties. Poorly performing homes exacerbate inequality, with low-income renters facing higher costs and greater health risks – as highlighted in the recent 2025 ACOSS Heat Survey Report, which found renters were among those most at risk during heatwaves.
Even modest upgrades like ceiling insulation, draught sealing, and efficient electric appliances can dramatically reduce energy bills and improve indoor comfort. A recent study by Renew demonstrated that simple, low-cost improvements could make a profound difference in a regular 3 bedroom Melbourne home.
As climate change drives more frequent heat waves and extreme weather events, the risks of leaving this problem unaddressed grow every year. In this context, minimum standards and energy disclosure aren’t niche reforms – they’re a public health safeguard, a climate resilience measure, and a basic consumer right.
Two decades of little to no action from governments
For too long, Australian governments have treated energy performance in the housing market as an optional extra. The Better Deal for Renters package announced in 2023 and the development of the national Home Energy Ratings Disclosure Framework were welcome signs of leadership from the last federal government, and now the pressure is on states and territories to make these commitments a reality on a jurisdictional level.
While the package and the framework are important first steps, their implementation faces potential resistance from property investors and certain political groups, making it critical to push for robust, enforceable reforms.
State, territory, and federal governments must:
- mandate minimum energy efficiency standards for all rental properties, including ceiling insulation, draught sealing, efficient heating and cooling, and the phased electrification of homes as appliances reach end of life.
- legislate a national, mandatory home energy rating disclosure scheme for all properties listed for lease or sale, with clear, consistent reporting across states and territories.
Better rental standards and mandatory disclosure aren’t radical interventions. They’re basic market safeguards that deliver public health benefits, reduce emissions, lower household costs, and restore fairness to a housing market that too often leaves consumers exposed.
The evidence is clear, and the policy solutions are ready. What’s missing is the political will. It’s time for Australia to elevate the rights of housing consumers.
