Overwhelming support for Victorian energy efficiency laws to expand could see landlord costs increase Australia-wide

• 81% Australians support Victoria’s energy-efficient standards for rental properties
• Renters show the highest support, with 67% wanting them rolled out nationally
• Support for the reforms is especially strong among under-35s, at 91%

Proposed changes to the minimum energy efficiency standards for rental properties could see Victorian landlords hit with increased costs from next year, in a bid to help the state move to net zero emissions. Now, new research has discovered that 81 per cent of Australians support the move, and 61 per cent would support all State Governments adopting the same standards.

The findings were derived from survey of an independent, nationally representative panel of 1006 Australians commissioned by Australia’s fastest-growing renewable energy provider[1], Green.com.au. Previously named Teho and rebranded to Green.com.au last year, the energy provider landed on the stage with Australia’s most talented business masterminds after taking out the top spot in the Australian Financial Review’s Fastest Growing Energy Company in Australia ranking, and spot 15 in the Fast Starters list overall.

From the survey, Green.com.au sought to find out what proportion of renters, rental providers and owner-occupiers support the reforms in Victoria, and whether they would support other states adopting the same reforms. The full research results can be found here: https://www.green.com.au/research/renters-and-landlords-divided-on-energy-efficiency-reforms

As background, recently the Victorian Government completed public consultation on proposed minimum energy efficiency standards for rental properties, with the aim of improving comfort and living costs for renters, and help navigate Victoria’s path to net zero emissions. The new standards would see landlords required to install ceiling insulation, improve door sealings, replace hot water and heating systems with energy-efficient appliances at the end of their lives, install four-star energy efficient shower heads and three-star cooling systems in the main living area from October 2025. Final standards are expected to be released October 2024.

Landlords least in favour of the standards

Green.com.au found that a staggering 81 per cent of Australians support the measures. While the changes are only set to impact Victoria, there is strong support for them to be implemented nation-wide. Renters show the strongest support, with more than two thirds (67%) in favour of the measures being adopted nationwide, and an additional 25 per cent preferring them to remain within Victoria only. Homeowner occupiers follow this, at 60 per cent for nationwide support and 17 per cent supporting the standards in Victoria only.

Among rental providers, around one third (36%) are in favour of the standards for Victoria and one third (33%) would support them across all other states. Despite increasing cost of living pressures, including high interest and inflation rates, recent reports from the Australian Bureau of Statistics shows investor lending growth continued to outpace the growth of owner-occupiers in June. The value of new investor loans was up by a staggering 30.2 per cent this August compared to a year ago[2]. The number of rental providers is growing across the country and with this comes an increased concern for the legislation and rules which impact them.

When Green.com.au analysed responses across age groups, it found a whopping 93 per cent of under 25s support the measures, with more than half (58%) wanting to see them rolled out nationally. Younger people are also the largest group of renters, with almost half (46%) of those aged between 25-34 years old and 55 per cent of under-25s renting.

These figures indicate that the younger generation are possibly more environmentally conscious than the older demographic, and are also not impacted by the upfront costs associated with implementing the changes.

The older demographics also showed strong support for the measures, with more than three quarters (78%) of respondents between the age of 55-64 supporting the measures. Similarly, 76 per cent of respondents aged 65+ and three quarters (75%) of respondents aged 45-54 years old also agreed with the measures.

ACT and WA residents most in support of the reforms

Green.com.au found that residents in Australia’s capital are most in favour of the new standards, at 87 per cent. Three quarters (74%) indicated the standards should be implemented nationally. West Australians followed closely behind, with 85 per cent in favour of the measures and nearly two thirds (62%) for the measures going national. Not far behind, 82 per cent of Queenslanders are in favour of the measures and nearly two thirds (62%) would agree with them expanding across the states and territories.

The full survey results, including breakdowns across property ownership status, ages and States, can be found here: https://www.green.com.au/research/renters-and-landlords-divided-on-energy-efficiency-reforms.

ENDS

About Green

Established as Teho in 2020 by brothers David and Jonathan Green – and rebranded in May 2024 – Green.com.au is a recognised, award-winning renewable energy provider. Green is helping lead the way in the transition to renewable energy by offering innovative energy solutions to Australian households, ranging from solar panels and solar batteries, heat pumps, and installation of electric vehicle charging solutions. In 2023 the Australian Financial Review recognised Teho as a Fast Starter, taking top position in the Agriculture, Mining and Utilities category, and 15th position overall.

[1] In 2023 the Australian Financial Review recognised Teho (now rebranded Green.com.au) as a Fast Starter, taking top position in the Agriculture, Mining and Utilities category, and 15th position overall.

[2 https://www.abs.gov.au/media-centre/media-releases/new-home-loans-rose-13-cent-june]