Tenants in Victorian homes could face up to $65 more in rent per week ($3,400 per year) if proposed new energy efficiency standards are implemented, according to a new study.

The Victorian state government is proposing new minimum energy efficiency standards for rental properties from October 2025 that would require the replacement of gas appliances that have reached the end of their life with electric appliances.

In its submission to the Victorian government, the Gas Appliance Manufacturers Association of Australia (GAMAA) cites a study by Frontier Economics which shows that the changes could result in additional costs of up to $27,000 for landlords.

These costs would likely be passed on to tenants and could result in rent increases of up to $65 per week for up to 280,000 rental properties. This is significantly more than the savings of less than $10 per week estimated by the Victorian State Government in its Regulatory Impact Statement (RIS).

“We have a number of concerns about the proposed changes, but the biggest is that they fail to take into account the true financial impact on tenants and landlords,” said GAMAA President Ross Jamieson.

“The additional costs that would be forced on landlords are also likely to result in rental properties being taken off the market at a time when many Victorian families are struggling to find a rental property and make ends meet. These new standards are also likely to result in renters having to live in colder homes.

Frontier Economics’ research is based on a typical detached 3- to 5-bedroom rental property with gas-fired hot water and gas duct heating.

Mr Jamieson pointed out that GAMAA supports initiatives to reduce energy costs and improve tenants’ living conditions, but this is not the right way to go.