Under the Residential Tenancy and Rooming Accommodation Act 2008, landlords are permitted to pass on the cost of the water their tenant uses on the condition that:
The property is individually metered (or water is delivered by vehicle), and
The property meets a number of criteria around the water efficiency of internal taps, toilets and shower heads, and
The tenancy agreement states the tenant must pay for water consumption.
If these conditions are not met, the landllord may still be able to charge for water used in excess of "reasonable" usage. The amount that is considered "reasonable" is set out and agreed in the tenancy agreement.
*Note: The property owner must pay all fixed charges. Tenants can only be charged the water usage component of the bill – not the fixed charges or sewerage charges. Landlords cannot pass on any other fees and charges, including late payment fees. Tenants cannot be charged more than the billable amount.