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.

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, meaning its walls, roof, windows and floors, 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 the Department of Climate Change, Energy, the Environment and Water (DCCEEW). This is one reason governments have tightened new-home energy standards over the past two decades.

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.

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. Yearly averages are calculated from the monthly seasonally adjusted ABS approvals series.

Enforcement then follows each state's own building approval system. Victoria, Queensland, New South Wales and Tasmania each rely on their own approval, certification and building-surveying processes to check compliance. 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.