What Water Usage Records Should New South Wales Landlords Keep in 2026?
A New South Wales rental property guide to water usage records: separate meters, water efficiency evidence, 3-star dual-flush toilets, meter readings, supplier bills, three-month requests, 21-day payment periods, and rebates.
Part of the Rental Rule Changes Watch 2026 series.
A New South Wales landlord’s water file should prove four things before usage is charged to a tenant: the premises are separately metered or receive delivered water, the prescribed water efficiency measures are met, the amount does not exceed the supplier’s usage charge, and the tenant received the relevant bill evidence on time. Keep the condition report, meter readings, product or plumber evidence, leak checks, supplier bill, payment request, delivery date, 21-day deadline, rebate, and receipt together.
This guide applies to Australia and specifically New South Wales residential tenancies. It does not describe water charging rules in Victoria, Queensland, South Australia, Western Australia, Tasmania, the Australian Capital Territory, or the Northern Territory.
The primary sources were reviewed on 20 July 2026. On that date, the current New South Wales legislation pages for the Residential Tenancies Act 2010 and Residential Tenancies Regulation 2019 contained the water usage and water efficiency provisions described below. The minimum 3-star dual-flush toilet requirement has applied since 23 March 2025.
What Water Usage Records Should New South Wales Landlords Keep?
Keep one evidence chain from the meter and fixtures to the bill and payment.
| Record | What it should prove in New South Wales |
|---|---|
| Separate-meter or delivered-water evidence | The premises meet the first condition for tenant water usage charges |
| Signed start condition report | Water efficiency status and opening meter reading were recorded |
| Tap and shower flow evidence | Relevant taps and showerheads do not exceed 9 litres per minute |
| Toilet product evidence | Every toilet is dual flush and has at least a 3-star WELS rating |
| Leak-check and repair record | Leaking taps or toilets were checked and fixed at required times |
| Licensed plumber report | Who checked which fixtures and whether each measure passed |
| Water supplier bill | Supplier, billing period, readings, usage, service charges, and rebates |
| Tenant calculation | Only the tenant’s eligible water usage amount was requested |
| Bill copy and delivery evidence | The tenant received the relevant supplier bill or other cost evidence |
| Request date and 21-day due date | Payment was requested within 3 months and at least 21 days were allowed |
| Receipt, adjustment, or repayment plan | Payment and any later correction can be reconciled |
| Signed end condition report | Closing meter reading separates one tenancy’s usage from the next |
Key Takeaway
A water supplier bill alone is not enough. The file must also prove separate metering, water efficiency, the tenant’s share, timely delivery, the payment period, and any rebate or adjustment.
When Can a New South Wales Tenant Be Charged for Water Usage?
Section 39 of the Residential Tenancies Act 2010 sets the New South Wales state test.
A tenant pays water usage charges only if:
- the premises are separately metered, or are not connected to a water supply service and water is delivered by vehicle
- the premises contain the water efficiency measures prescribed by the Residential Tenancies Regulation 2019
- the charges do not exceed the amount payable by the landlord for water used by the tenant
The Act also says the tenant is not required to pay unless the landlord gives the tenant the relevant part of the water authority’s bill or other evidence of the cost. The landlord must allow at least 21 days to pay and must request payment within 3 months after the water authority issues the bill.
The New South Wales Government water-charging guidance, reviewed on 20 July 2026, adds the operational instruction that water usage should be paid separately from rent.
Record the statutory conditions separately from the practical calculation. A ledger entry called water does not show that the property qualified or that the bill reached the tenant in time.
Which Water Charges Stay With the Landlord?
The New South Wales Government says water supply service charges and sewerage supply service charges remain with the landlord, apart from the water usage and septic pump-out rules described in the guidance.
The supplier bill should therefore be split into labelled components:
| Bill component | Evidence treatment |
|---|---|
| Water supply or service charge | Landlord amount; do not include in the tenant usage request |
| Sewerage supply or service charge | Landlord amount; do not include in the tenant usage request |
| Water usage charge | Potential tenant amount only if every section 39 condition is met |
| Rebate or credit | Show how the tenant received the benefit where it relates to their usage |
| Prior balance, fee, or adjustment | Reconcile separately; do not silently add it to the current usage request |
| Septic pump-out | Assess under the separate New South Wales rule for the actual premises |
The fact is who bears each charge under New South Wales tenancy law. The practical implication is to retain the complete bill and a separate tenant calculation instead of forwarding a total with no breakdown.
What Water Efficiency Measures Apply in 2026?
Clause 10 of the Residential Tenancies Regulation 2019 prescribes the water efficiency measures for section 39:
- showerheads must have a maximum flow rate of 9 litres per minute
- since 23 March 2025, toilets must be dual flush with a minimum 3-star rating under the Water Efficiency Labelling and Standards scheme
- internal cold water taps and single mixer taps for kitchen sinks or bathroom hand basins must have a maximum flow rate of 9 litres per minute
- at the start of the tenancy, and whenever other water efficiency measures are installed, repaired, or upgraded, the premises must be checked and leaking taps or toilets fixed
The New South Wales Government water-efficiency guidance, reviewed on 20 July 2026, clarifies that the 9-litre tap limit does not apply to bathtub taps, laundry sinks, washing machines, dishwashers, or outdoor taps.
Create a fixture register with one row for each relevant item:
| Field | Evidence source |
|---|---|
| Fixture identifier and location | Room, photo, or condition report |
| Fixture type | Showerhead, kitchen tap, bathroom tap, or toilet |
| Make and model | Product label, invoice, packaging, or plumber report |
| WELS registration or rating | Product record, packaging, warranty, or plumber verification |
| Flow rate | Product specification or dated test result |
| Dual-flush status | Toilet model evidence and physical inspection |
| Leak-check date and result | Start report, plumber report, inspection, or repair work order |
| Repair or replacement | Work order, invoice, completion date, and updated register |
Do not write only water efficient: yes. That does not identify which toilet, tap, or shower was assessed or whether a later replacement still meets the standard.
What Evidence Demonstrates Water Efficiency?
New South Wales Fair Trading says water efficiency measures should appear on the condition report.
Its water-efficiency guidance gives examples of supporting evidence:
- original receipts or packaging
- warranties or instruction manuals
- product model name or WELS registration number
- a written report from a licensed plumber identifying the plumber, confirming that a water efficiency check was performed, and stating whether the taps, showerheads, or toilets meet the minimum measures
A strong plumber report should identify the property, inspection date, every relevant fixture, result, failed item, repair completed, and any item not assessed. Keep the plumber’s identity and licence verification with the report.
Product evidence and plumber evidence answer different questions. A product specification can prove the model rating. A site report can prove that the product was installed at this property and that leaks were checked.
What Goes on the Condition Report?
The current prescribed New South Wales condition report asks the landlord or agent to indicate whether required water efficiency measures are present when the premises are separately metered and the tenant is to pay water usage charges.
The report includes:
- the water efficiency items
- the date the premises were last checked for compliance
- the water meter reading at the start of the tenancy and date of reading
- the water meter reading at the end of the tenancy and date of reading
New South Wales Fair Trading’s residential tenancy condition report was last updated on 12 February 2025 and was reviewed for this article on 20 July 2026.
Keep:
- the landlord or agent’s completed version
- the copy supplied to the tenant
- the tenant’s returned comments
- signed final version
- dated meter photos where used
- product or plumber evidence behind the water efficiency answers
- end-of-tenancy reading and date
The meter reading protects both parties from allocating one tenant’s usage to another billing period. If the supplier billing dates do not match the tenancy dates, retain the calculation that apportions the measured usage.
How Should Each Tenant Water Bill Be Recorded?
Build one row per supplier bill:
| Field | Purpose |
|---|---|
| Supplier and account | Identifies the source bill without changing its meaning |
| Bill issue date | Starts the 3-month request period |
| Billing period | Shows which tenancy dates overlap |
| Opening and closing readings | Supports measured usage |
| Total usage and supplier rate | Recreates the usage charge |
| Service and sewerage charges | Shows the landlord amounts excluded |
| Rebate or credit | Shows the benefit passed to the tenant |
| Eligible tenant usage amount | Records the final amount requested |
| Bill copy sent | Identifies the exact evidence given to the tenant |
| Delivery method and date | Proves when the tenant received it |
| Payment request date | Proves the request fell within 3 months |
| Due date | Proves the tenant received at least 21 days |
| Payment, adjustment, or dispute | Reconciles the outcome |
Do not calculate the 3-month period from the day the property manager opens the bill. The New South Wales Act measures from the water authority’s bill issue date.
If the landlord first requested payment within the 3-month period, section 39 does not prevent later recovery action solely because more than 3 months has passed. Preserve the original timely request and delivery evidence.
How Are Rebates and Corrections Handled?
Section 39 of the Residential Tenancies Act 2010 requires the landlord to ensure the tenant receives the benefit of, or an equivalent amount to, any rebate for water usage charges payable or paid by the tenant.
Keep a change log when a supplier later:
- applies a rebate
- corrects a meter reading
- reverses a charge
- changes the usage amount
- reissues the bill
The change log should link the original bill, tenant request, corrected bill, recalculation, message to the tenant, and credit or refund.
Do not overwrite the first bill and lose the audit trail. Keep both versions and label which calculation is current.
What If Water Efficiency Changes During the Tenancy?
The New South Wales Regulation requires leak checks when other water efficiency measures are installed, repaired, or upgraded.
When a tap, showerhead, or toilet changes:
- record the old fixture and reason for work
- keep the work order and invoice
- record the new make, model, rating, or flow evidence
- check the other required fixtures and fix leaking taps or toilets
- obtain the plumber’s result where a plumber performs the work or assessment
- update the fixture register
- retain tenant repair reports and completion messages
If the evidence file cannot show that the premises continued to meet the prescribed measures, obtain current evidence before passing on another water usage charge.
What About Water Tanks, Septic Systems, and Social Housing?
Do not apply the standard reticulated-water workflow without checking the property type.
The New South Wales Government guidance says:
- where tank water delivered by vehicle is the only supply, the landlord should provide water at the start and the tenant may be responsible for refilling during the tenancy if the property meets the water efficiency measures
- tenants are responsible for the cost of pumping out a septic tank when it becomes full
- social housing tenants are subject to separate ministerial water-charging guidelines
Record the water source, meter or delivery basis, tank starting position, delivery invoices, septic service records, and the tenancy type. Obtain New South Wales advice for unusual shared meters, embedded networks, strata arrangements, or mixed-use premises.
How Do Federal Australian Tax Records Fit In?
They are a separate record purpose.
The right to pass water usage charges to a tenant comes from New South Wales tenancy law. It is not an Australian Taxation Office rule.
Invoices for a plumber, leak repair, replacement tap, showerhead, or toilet may also support an Australia-wide federal tax position. The tax treatment can depend on whether the cost is a repair, depreciating asset, or capital improvement. Keep the original scope and invoice, then use What Records Prove Repairs vs Improvements for Australian Rental Properties in 2026? with professional tax advice where needed.
Do not rename a New South Wales water efficiency report as a federal tax certificate. One source document can support separate state tenancy and federal tax workflows while retaining its original purpose.
Practical Filing Pattern
For each New South Wales rental property, keep a water-usage-and-efficiency folder with:
meter-and-water-sourcestart-condition-report-and-readingfixture-registerwels-product-evidenceplumber-reports-and-licence-checksleak-checks-and-repairssupplier-billstenant-usage-calculationsbill-delivery-and-payment-requestspayments-adjustments-and-rebatesdisputes-and-repayment-plansend-condition-report-and-readingfederal-tax-copies
Use the supplier bill issue date and billing period in filenames. water-bill.pdf is weaker than a record that identifies the property, period, bill issue date, usage amount, tenant request date, and due date.
Related Proppi Guides
- New South Wales Rental Law Changes 2026
- Australia State-by-State Rental Compliance Comparison 2026
- New South Wales Fair Trading
- Who Pays Water and Wastewater Charges in a New Zealand Rental in 2026?
- How Proppi Builds Property Memory from Documents
Source Note
This article is specific to Australia and New South Wales. It relies on New South Wales Fair Trading guidance and the current New South Wales Residential Tenancies Act 2010 and Residential Tenancies Regulation 2019. It is general information about organising rental water records, not legal, plumbing, water-supply, tenancy, accounting, or tax advice.
Last reviewed: 20 July 2026. Confirm the current position with New South Wales Fair Trading, current New South Wales legislation, the property’s water supplier, and a licensed plumber.
The Short Version
- Prove separate metering or delivered water before charging a New South Wales tenant for usage.
- Keep fixture-level evidence for the 9-litre tap and shower limits and the minimum 3-star dual-flush toilet rule.
- Record water efficiency and meter readings on the start and end condition reports.
- Give the tenant the relevant supplier bill, request payment within 3 months, and allow at least 21 days.
- Separate landlord service charges, tenant usage, rebates, New South Wales tenancy records, and federal Australian Taxation Office records.
Suggested citation
Proppi Editorial Team, "What Water Usage Records Should New South Wales Landlords Keep in 2026?", Proppi, 2026-07-20.
Sources used
- New South Wales Government - Connection and supply of water to rental properties
- New South Wales Government - How to improve water efficiency in rental properties
- New South Wales Fair Trading - Residential tenancy condition report
- New South Wales Legislation - Residential Tenancies Act 2010
- New South Wales Legislation - Residential Tenancies Regulation 2019
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