Minimum housing standard for ceiling insulation in rental properties

What the standard is

An R-value tells you how well insulation can keep heat from passing through it. The higher the R-value, the better it is at insulating.

Rental properties with no ceiling insulation or insulation below an R-value of R2, need to install or upgrade the ceiling insulation to a minimum R-value of R5.

Rental properties with existing ceiling insulation with a minimum R-value of R2 meet the standard.

Landlords are responsible for ensuring their rental property meets the standard.

When the standard needs to be met

When the standard needs to be met depends on if:

• the property is under an existing tenancy agreement
• a new tenancy agreement will be entered into.

For existing tenancy agreements, landlords must ensure the property complies with the standard by 30 November 2026.

For new tenancy agreements, the landlord must ensure the property complies with the standard within 9 months of signing the new tenancy agreement.

These timeframes apply unless the property is exempt.

Exemptions from the standard

Properties can be exempt from the standard. This means they don’t need to install new ceiling insulation.

An exemption can be permanent or temporary.

Permanent exemption

If a property has a permanent exemption, the landlord does not need to install ceiling insulation under the standard.

A permanent exemption applies to properties that:

• are heritage-listed, where installing insulation would affect the heritage value
• are lower floor units in apartment complexes, as the apartments above provide insulation
• have a physical constraint, such as roof design that prevents the installation of insulation
• are dwellings where the cost of installing ceiling insulation for the entire property is over $10,000.

If the cost for new insulation is over $10,000 for the entire property, a landlord must install insulation up to the value of $10,000. This is for rooms that tenants spend more time in, like lounge and living areas and bedrooms.

Temporary exemption

For temporary exemptions a landlord will need to install new insulation when the temporary exemption ends.

A temporary exemption applies to properties that:

• are a top-floor unit of an apartment building, and the owners' corporation refuses permission, or is arranging the installation of ceiling insulation collectively
• have a tenant who objects in writing to work to install or upgrade ceiling insulation
• have a tenant who is the former owner of the property and is renting the property from the new owner for up to 12 months
• will be demolished, or a substantial part demolished, within 2 years of signing the lease, landlords must notify tenants of this before they sign a lease.

When a temporary exemption ends, the property must meet the minimum standard:

• within 9 months, if a temporary exemption stops applying between 1 April 2023 and 30 November 2026, or
• within 3 months, if a temporary exemption stops applying after 30 November 2026.

What landlords need to do

Keep evidence of the standard being met

Landlords must keep records of their property’s compliance with, or exemption from, the standard.

Evidence about compliance with the standard can include:

• a receipt for insulation installation services that includes the R-value of the ceiling insulation
• an inspection report from an insulation installer
• an Energy Efficiency Rating report from a building assessor, if the property was built after 1997
• a statutory declaration that the existing insulation has not been disturbed
• a statutory declaration that ceiling insulation with an R-value of R2 or more has been installed
• a statutory declaration setting out the grounds for exemption.

Disclose that the standard has been met or is exempt

Landlords must disclose whether their property meets the standard or is exempt:

• when advertising the property
• when entering the tenancy agreement.

When advertising the property, the landlord or property manager can add information on ceiling insulation compliance to the Energy Efficiency Rating (EER).

The statement on compliance should state that the property either:

• complies with the minimum ceiling insulation standard
• does not comply with the minimum ceiling insulation standard
• has a valid exemption and is not required to comply with the minimum ceiling insulation standard.

It is an offence if landlords:

• fail to disclose if their property complies with, or is exempt from, the minimum standard in a rental advertisement
• make a false or misleading statement in a rental advertisement about their property’s compliance with the minimum standard.

Meet requirements if new ceiling insulation is required

If the property requires new ceiling insulation to meet the standard, the landlord must:

• ensure an electrical safety inspection is conducted by a licensed electrician before any ceiling insulation is installed
• have a licenced electrician complete any required work to fix any electrical issues before the insulation is installed.

This is to ensure the safety of the rental property and tenants.

As part of an electrical safety inspection, landlords must ensure that the licenced electrician:

• completes a required electrical work report [PDF 376& kB]
• completes an electrical work report [PDF 376 kB], for any electrical work
• provides a Certificate of Electrical Safety (CES) to Access Canberra within 14 days.

Landlords should ask for a copy of the CES for their records.

Have ceiling insulation installed by a certified installer

A certified installer must install insulation.

Find a certified insulation installer on the Energy Efficiency Council’s website.

Failure to use certified installer may have consequences for insurance. Insurance may not cover injury or damage from insulation installations that do not comply with the regulation.

What tenants need to do

Tenants can support the installation of ceiling insulation by providing access to the rental property.

Tenants will generally not need to leave the property for the electrical safety check or insulation installation, which will usually take less than half a day.

Landlords have a right to access the property to meet the standard's requirements in the same way that applies to non-urgent repairs or maintenance.

Landlords should give tenants at least one week written notice that they need to access the property. The tenant and landlord should agree on a time to access the property that suits them both.

If a tenant refuses access to the property in writing, the landlord may claim a temporary exemption from compliance with the standard for the duration of the tenancy.

Dispute resolution

Tenants have the right to request and receive documentary evidence that either:

• the property meets the minimum standard for ceiling insulation
• the property has a valid exemption.

Tenants can apply to ACT Civil and Administrative Tribunal (ACAT) for dispute resolution if:

• they dispute a claim that the property meets the standard
• they dispute a claim that the property is exempt from meeting the standard
• the property does not comply with the minimum standard within the required timeframe.

If ACAT agrees that the property does not meet the standard when it needs to, ACAT can order:

• a rent reduction
• financial compensation
• that the tenancy end (if that is what the tenant wants).

Read more about how ACAT can help resolve rental property disputes.

Support to pay for upgrades

Landlords are responsible for the cost of upgrades to meet the standard. The cost of insulation upgrades will vary depending on the property and the amount of work required.

To assist with upfront costs, eligible landlords can access support through the Sustainable Household Scheme and the Home Energy Support Program.

Factsheets and checklist