Federal, state and territory Building Ministers have agreed to raise the minimum energy efficiency standards for new homes by updating the National Construction Code (NCC).

Following the NCC announcement, minimum energy efficiency requirements for new houses and apartments are increasing from the Nationwide House Energy Rating Scheme (NatHERS) equivalent of 6 to 7 stars.

A new whole of home annual energy use budget applicable to the home’s heating and cooling equipment, hot water systems, lighting, swimming pool and spa pumps and onsite renewable energy systems will also be introduced. This will make homes more comfortable, help households with cost-of-living pressures, and support Australia’s transition to net zero.

In making this decision Building Ministers took advice from the Australian Building Codes Board, based on their extensive regulatory impact analysis and consultation over the last year.

Assistant Minister for Climate Change and Energy Jenny McAllister says the new home minimum energy efficiency requirements will mean new homes are more affordable to heat and cool, and more comfortable.

“These measures have clear benefits for households. Energy efficient houses are more comfortable to live in – cheaper to heat in winter and cool in summer,” she says.

“The new energy efficiency standards also support Australia’s transition to net zero emission by 2050 by reducing the costs associated with new generation infrastructure.”

She adds that to ensure the industry is adequately prepared, the energy efficiency changes to the NCC will come into effect on 1 October 2023 but may vary by state and territory.

More information about the new the minimum energy efficiency standards can be found here.