Better Renting welcomes the opportunity to provide input into the Residential Tenancies (Minimum Standards) Amendment Bill 2024. This legislation is timely, necessary, and life-saving.

We strongly support the introduction of minimum standards for insulation, draught-proofing, heating and cooling, and appliance efficiency. Renters in South Australia are among the most exposed in the country to the health and financial harms of energy-inefficient housing. The Bill would align with leading jurisdictions. The practical, evidence-based reforms it proposes would deliver tangible health and financial benefits to South Australian renters, and improve broader public health outcomes.

However, to achieve these benefits, the new minimum standards must:

● Be supported by strong compliance mechanisms and effectively enforced;
● Avoid unintended consequences and ensure renters do not face eviction or rent hikes as a result of upgrades; and
● Be adequately resourced, with targeted and conditional financial assistance provided to landlords where appropriate.

Without enforcement, even well-designed standards risk being ignored, leaving renters without the benefits of the new standards and bearing the burden of holding landlords to account. Safeguards must be implemented to protect renters against unintended consequences such as rent increases or evictions that would undermine the benefits of these upgrades. Conditional support for landlords will help overcome financial barriers to compliance, while ensuring that public money delivers genuine benefit without increasing renters’ housing stress.

Why minimum energy standards are needed in SA

Poor housing conditions and health risks

Rental homes in South Australia are plagued by poor energy performance and structural inefficiencies. These homes were often built before any energy efficiency regulations existed and are poorly suited to today’s climate extremes. Rental homes are less likely to have energy efficient features such as ceiling insulation, efficient heating and cooling, draught proofing and may even be missing basic things such as efficient window coverings. Because renters generally have no ability to retrofit or upgrade their homes, they are uniquely vulnerable to the impacts of cold, heat, and poor ventilation.

Low-income renters, older people, and those with existing health conditions or disabilities are especially at risk. For many renters, poor housing quality and high energy costs intersect, creating a situation where they are forced to choose between thermal comfort and essentials like food or medication.

In our Cold and Costly report (2022), we found that:

● Most SA rental homes failed to maintain healthy indoor temperatures in winter,
● 100% of SA Renter Researchers reported experiencing cold-related discomfort, and many said they could not afford to run heating.

The coldest indoor temperature I recorded was 8.9 degrees. Even with a heater on in one room, the rest of the house was unbearable.

–Renter Researcher, SA, Winter 2022

Our Cruel Summers report (2024) reveals similar trends during heatwaves:

● The highest indoor temperature was recorded in South Australia where a participant’s home reached 45.3°C indoors,
● Others felt the need to flee their home during the day to avoid the heat, they slept with cold wet towels, or avoided cooking.

We couldn’t stay in the house during the day, it was just too hot. My daughter had a nosebleed from the heat.

–Renter Researcher, SA, Summer 2023–24

Unhealthy indoor temperatures are an unacceptable health risk for the 30% of South Australians who rent their homes. Cold indoor temperatures are associated with respiratory and cardiovascular conditions, while extreme heat is Australia’s deadliest natural hazard. Without intervention, renters will continue to suffer and potentially die in or because of homes that fail to provide basic protection.

Financial hardship

Energy-inefficient rental housing imposes unacceptable and unfair financial costs on renters. In our energy costs report, Joule Thieves (2024), nearly 50% of survey respondents said their energy bills were unaffordable; this was especially significant for renters relying on income support.

I worry about money and the cumulative financial impact the longer my health issues continue has been very stressful. As if being 27 and developing a heart problem wasn't stressful enough! The cold, and the stress of trying to manage the cold, has added an extra layer of shittiness to an already shitty time in my life.

–Adelaide renter, Facebook message

Better Renting estimated the financial costs of inefficient rental homes in South Australia in our report, The Cost of Inefficient Rental Housing (2023), finding:

● Renters in poor-quality homes face up to $4,500 per year in additional energy costs,
● On average, renters in poor-quality homes spend $2,800 more each year to keep their homes liveable compared to renters in more effi cient homes.

Energy costs have increased significantly in South Australia since we published this report, meaning energy debt, disconnection risk, and housing insecurity are even more dire now.

I have panic attacks about the power bill. I try to avoid using the heating and feel like I have failed and made a stupid mistake when I do use it and I am going to pay for it later when I can’t afford the bill.

–Emily, Mount Barker, SA, Renter Researcher

Recommendations

Better Renting strongly supports the Residential Tenancies (Minimum Standards) Amendment Bill 2024. These reforms are a critical and timely priority for the South Australian Parliament as they have the potential to significantly improve the health, safety, and financial well-being of renters across the state.

To ensure the Bill achieves the benefits for renters intended by the proposed minimum standards, Better Renting has identified opportunities to strengthen its provision. Our recommendations focus on enhancing compliance mechanisms, safeguarding renters from unintended negative impacts, providing targeted support for landlords, and ensuring transparency through mandatory disclosure.

Strengthen compliance mechanisms

Minimum standards will only improve rental homes if they are properly enforced. Right now, renters are often left to shoulder the burden of compliance, with limited support and significant personal risk. To ensure landlords meet their obligations, the compliance framework must shift responsibility away from renters and include stronger enforcement tools, better oversight, and more accessible pathways to report non-compliance.

Recommendation 1: Replace low expiation fee with a more substantial and escalating penalty system that provides a real deterrent to non-compliance.

Recommendation 2: Establish and adequately resource an independent enforcement body empowered to proactively investigate non-compliance, conduct random audits, and accept anonymous reports from renters. Ensure renters are protected from retaliation when they make a complaint.

Prevent unintended consequences

As outlined in the Healthy Homes for Renters Joint Statement and Community Sector Blueprint, it is essential that we design policy to avoid unintended consequences to renters. Upgrades designed to improve rental homes should not come at the expense of the people living in them. Without strong protections, there is a risk that landlords could use energy efficiency improvements to justify rent increases or end tenancies. This would undermine the purpose of the reforms and could result in displacement or financial hardship for renters. Clear safeguards are needed to ensure that renters benefit from improvements without facing unintended harms.

Recommendation 3: Prohibit rent increases linked to upgrades for a minimum period (e.g. 24 months) and cap rent increases overall to protect renters from sudden unaffordable hikes following improvements.

Recommendation 4: Ban evictions where landlords cite energy efficiency upgrade works as a reason to end leases. Ensure any public financial support provided for upgrades is conditional on landlords committing not to increase rents or displace tenants as a result of the works.

Targeted and conditional support for landlords

While landlords should be expected to meet minimum standards as a basic obligation providing a habitable home, we recognise that some may face genuine financial barriers—particularly those renting out older properties or those with limited financial resources. In these cases, targeted and conditional support can help accelerate compliance without undermining renter protection or creating perverse incentives.

Recommendation 5: Offer financial incentives, such as rebates or low-interest loans, to assist landlords in meeting minimum standards, with eligibility contingent on meeting clear performance criteria.

Recommendation 6: Prioritise support for properties housing low-income renters to ensure that assistance reaches the places with the greatest need, while preventing upgrades from exacerbating housing inequality.

Mandatory disclosure

Renters deserve to know whether a home will be safe, comfortable, and affordable to live in before signing a lease. Mandatory disclosure of energy performance and compliance with minimum standards ensures transparency, creates accountability for landlords, and empowers renters to make informed choices. It also helps drive market-wide improvement by rewarding properties that meet or exceed minimum standards.

Recommendation 7: Mandate a standardised energy performance disclosure statement that landlords or agents must include in all rental property advertisements, clearly indicating compliance with minimum standards.

Recommendation 8: Require landlords or agents to provide a comprehensive, written energy performance disclosure form to prospective renters prior to lease signing.