Building Codes & Standards · Australia · Updated 13 July 2026

New home energy efficiency rules in Australia in 2026

Most new houses and townhouses approved in jurisdictions that have adopted NCC 2022 must now meet a 7-star NatHERS-equivalent thermal standard, up from the 6-star minimum that applied for more than a decade. Apartment buildings generally need to average 7 stars across units, with no individual apartment below 6 stars, although NSW uses BASIX-aligned settings and state-specific concessions apply. The rule sits inside the National Construction Code (NCC) 2022, which has been adopted with variations in every state and territory except Tasmania and the Northern Territory by mid-2026.

Building ministers have paused further changes to the code for residential energy efficiency until at least mid-2029, so the 7-star standard, alongside a separate Whole of Home energy budget, is expected to remain the main residential energy-efficiency framework for the rest of the decade.

The ABS recorded 17,019 dwelling approvals in May 2026 on a seasonally adjusted basis, with new homes assessed against the code, BASIX or transition rules that applied in their jurisdiction at the approval stage.

SECTION 01 · Standard

What the National Construction Code requires from new homes

New houses and townhouses in adopting jurisdictions must generally reach a minimum NatHERS-equivalent thermal rating of 7 stars, one full star above the 6-star minimum that applied under the previous code. Apartment buildings face a related but separate test: the building must average 7 stars across all units, with no individual apartment below 6 stars.

A second test, called Whole of Home, sets a minimum energy score of 60 out of 100 for houses and 50 out of 100 for apartments under the NCC 2022 default settings, with NSW using BASIX-aligned settings and jurisdictional variations applying. It works on a scale where 100 represents a net zero energy home, and scores above 100 are possible if a home generates more solar energy than it uses.

The score covers energy used by fixed equipment inside the home, including heating and cooling systems, hot water, lighting, and pool or spa pumps, after deducting eligible rooftop solar generation. It sits alongside the thermal rating, which measures how well a building's shell holds a comfortable temperature without mechanical heating or cooling.

Residential buildings account for around 24% of Australia's electricity use and more than 10% of its carbon emissions, according to DCCEEW. The combined requirements are estimated to save new homes an average of $183 a year on power bills, according to government modelling, though actual savings depend on climate, household size and how the home is used.

Why the standard exists

Source: DCCEEW, residential buildings and energy efficiency guidance.

SECTION 02 · History

How does the 7-star rule compare with the old 6-star standard?

The average Australian home rated about 1.8 stars in 2003, when no national minimum yet existed, though some states had already introduced their own early minimums from 2001, typically 3 to 4 stars.

A 6-star floor was mandated nationally from 2010, before NCC 2022 lifted it to 7 stars and added the Whole of Home budget as a separate layer of assessment — a bigger shift than the one-star headline suggests.

Historical star ratings before 2016 were not collected in a national database and are drawn from CSIRO research and public commentary rather than certificate records.

Under the previous code, a Victorian home could reach 6 stars and separately install either a solar water heater or a rainwater tank connected to the toilets. That services requirement was removed when NCC 2022 became mandatory in Victoria on 1 May 2024, replaced by the wider Whole of Home energy budget, known in the code as H6P2.

From 1 October 2023, the thermal standard for applicable new homes in New South Wales rose from an average of 5.5 to 6 stars to 7 stars, alongside a 7% to 11% increase in greenhouse gas emission reduction targets depending on location and development type.

NSW's own BASIX system estimates an average home meeting the higher standard will save $1,070 a year in energy bills, higher than the national $183 estimate because the two figures use different scopes, methods and assumptions.

The comparison only holds in states that have actually adopted the new standard. Tasmania still requires 6 stars for new homes, and the Northern Territory requires 5 stars for houses and 3.5 stars for apartments, so the before-and-after story does not apply nationally.

SECTION 03 · Design

What does a 7-star home design need?

A 7-star NatHERS rating is performance based rather than tied to one fixed specification. The required mix of insulation, glazing, shading, orientation, ceiling fans and building sealing varies by climate zone, site layout and design. One home may reach 7 stars with stronger glazing and moderate insulation, while another may need smaller windows, better orientation or additional insulation to reach the same rating.

NatHERS guidance for designers points to a consistent set of levers:

• Orientation suited to the local climate
• Better glazing and shading
• More internal zoning, with doors between living areas
• Additional insulation across more of the building
• Ceiling fans
• Lighter roof and wall colours in warmer climates
• Fewer ceiling penetrations from downlights, roof windows and skylights, which let conditioned air escape

Reaching 7 stars is not the end of the compliance process. In Victoria, for example, certifiers still expect documentation covering window schedules, U-values, solar heat gain coefficients, insulation R-values, orientation, and lighting and services. The NCC separately requires attention to insulation installation methods, thermal breaks, building sealing, and water heating and pumping.

SECTION 04 · Climate zones

How climate zones affect 7-star home design in Australia

Australia is divided into eight NCC climate zones, from hot humid Zone 1 in the tropics to alpine Zone 8, and the design response needed to reach 7 stars changes depending on the home's climate zone.

NCC climate zones and design priority in Australia

Source: Design priority reflects where heating and cooling demand is greatest in each climate zone, not a formal NCC classification. Australian Government, Your Home, climate zone guidance.

The practical difference shows up in design priorities: homes in the hot, humid north are built to shed heat, while homes in the cool south and inland are built to hold onto it. Most of Australia benefits from north-facing living areas that capture winter sun while eaves block summer heat, but homes above the Tropic of Capricorn benefit more from cooling breezes and shade than from northern sun.

NatHERS software applies standard climate data and weather files that are generally aligned to postcode boundaries, though an alternative zone can be assigned within a postcode where local conditions differ enough to matter.

SECTION 05 · Adoption

Which states and territories have adopted the standard, and when?

Two jurisdictions, Tasmania and the Northern Territory, have not adopted the 7-star minimum. Everywhere else, adoption has been staggered across six commencement dates between October 2023 and May 2025, even though NCC 2022's energy provisions sit in one national code.

7-star adoption by state and territory in Australia

Source: ABCB, NCC 2022 and NCC 2025; DCCEEW; NSW Planning; ACT Planning; Victoria DEECA; Queensland Housing; PlanSA; WA Government; Northern Territory Government; Tasmania CBOS.

Building activity gives a sense of scale, though it says nothing about which star rating each approval will meet. In the seasonally adjusted estimate for May 2026, Victoria and New South Wales remained the largest markets by dwellings approved, while Tasmania — which has not adopted the 7-star standard — recorded the smallest number among the jurisdictions with published seasonally adjusted figures.

The month-to-month movements diverged sharply by state. South Australia's seasonally adjusted approvals rose 10.9% in May 2026, the strongest gain of any state, while Queensland fell 8.8%, the steepest decline. Single-month swings of that size are common in a series built from relatively small state-level counts, so they should be read as monthly volatility rather than evidence of a sustained shift.

On a yearly-average basis, seasonally adjusted approvals peaked around 2015, rose again to a second high around 2021, fell to a recent low around 2023, and have recovered since, although the monthly series itself moves up and down considerably from month to month.

SECTION 06 · Exemptions

Exemptions and transition rules still apply in some jurisdictions

At least seven major exemption or transition categories remain active in 2026, and the list is not exhaustive. It does not include every state-specific rule, such as South Australia's delayed application of modern homes provisions to alterations and additions until 30 April 2030.

Selected 7-star exemptions and transition arrangements in Australia

Source: NatHERS; NSW Planning; PlanSA; ACT Planning; Tasmania CBOS; Western Australia Building Regulations 2012.

SECTION 07 · Compliance

How 7-star home energy compliance is checked

NatHERS certificates are issued at the design stage and record the thermal rating, Whole of Home score, key design features and certificate details used to check the approved design. The certificate allows builders, certifiers and regulators to confirm that a home was designed to meet the NCC's minimum energy-efficiency standards and was built to match the rated design.

CSIRO says NatHERS certificate use has climbed steadily. In 2018, about 80 NatHERS certificates were generated for every 100 ABS building permits, rising to 96.5 certificates per 100 permits in 2025. This indicates that NatHERS software is the dominant assessment pathway, but certificates per permit are not the same as a direct compliance-outcome rate.

Enforcement then follows each state's own building approval system. Victoria's building surveyors check energy-efficiency documentation before issuing permits and may inspect homes during construction. Queensland accepts a software assessment when it is completed by a suitably trained assessor using an approved NatHERS tool. New South Wales uses BASIX and NatHERS documentation for applicable residential development. In Tasmania, the building surveyor checks compliance at the Certificate of Likely Compliance stage, with a Form 55 certificate used where an independent assessor conducted the rating.

SECTION 08 · Outlook

Is Australia moving to an 8-star home energy standard?

Building ministers have paused further residential energy efficiency changes to the National Construction Code until at least mid-2029, except for essential safety and quality changes. The federal Minister for Housing announced the pause in August 2025, and state and territory building ministers formally agreed to it in October 2025. The 7-star and Whole of Home standards introduced in NCC 2022 are expected to remain the main residential energy-efficiency settings during the pause.

NCC 2025 was available for jurisdictions to consider from 1 May 2026 after preview publication earlier in 2026, but it does not add new residential energy-efficiency requirements. Its main changes are concentrated in other areas, including commercial buildings, water management, carpark fire safety and condensation control.

States and territories are rolling out NCC 2025's other provisions on different timelines through to May 2027, as the table in Section 05 shows. That staggered rollout does not change the 7-star or Whole of Home standard in jurisdictions that have already adopted NCC 2022 residential energy provisions.

Chart Snapshots