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If you are building a new home, planning a major renovation, or working in the residential construction industry in Australia, the 7-star energy rating under the National Construction Code is now the standard you need to meet. This is not upcoming policy — it is current, enforceable regulation that affects what you build, how you build it, and what it costs.
The NCC 2022 introduced the most significant shift in residential energy standards Australia has seen since the original 6-star minimum was introduced over a decade ago. As of 2026, every mainland state and territory bar the Northern Territory has adopted these requirements, and building ministers have confirmed that the 7-star provisions will remain in place under NCC 2025 with no further residential energy changes planned until at least mid-2029.
This guide explains what the 7-star requirement actually involves, how the Whole-of-Home energy budget works alongside it, which states have adopted what and when, what it is likely to cost, and what practical steps you can take to meet the standards without overcapitalising. It also covers where glazing fits into the compliance picture — because the performance of your windows and doors is one of the most influential factors in whether a home reaches 7 stars or falls short.
The NCC 2022 introduced two headline changes to residential energy efficiency for Class 1 buildings (houses and townhouses) and Class 2 buildings (apartments).
The first change is a lift in the minimum NatHERS rating from 6 stars to 7 stars out of a possible 10. NatHERS — the Nationwide House Energy Rating Scheme — measures how well a home’s thermal shell performs. It assesses the building fabric: walls, roof, floor, windows, and how they interact with the local climate to maintain comfortable internal temperatures with minimal mechanical heating and cooling.
The rating is calculated using energy modelling software (underpinned by CSIRO’s Chenath Engine) that simulates the internal temperature of every room using Bureau of Meteorology weather data for the home’s specific climate zone. A licensed NatHERS assessor runs the model and produces a star rating. The higher the rating, the less energy the home needs for heating and cooling.
While one star may sound like a small change, the practical impact is significant. A 7-star home can reduce heating and cooling energy demand by as much as 25% compared to a 6-star home. That translates directly into lower running costs, better comfort year-round, and reduced reliance on mechanical systems.
Glazing is one of the most directly affected product categories under the 7-star requirement. The thermal characteristics of different window types — their U-Factor, Solar Heat Gain Coefficient (SHGC), and frame performance — are all modelled individually by NatHERS software. Configurations like double-glazed fixed windows and double-glazed awning windows each perform differently in the model, and understanding those differences before you sit down with your assessor makes the whole process more productive.
The second change is entirely new: a Whole-of-Home energy budget that goes beyond the building shell and accounts for the energy consumed by the systems running inside the home. This includes heating and cooling equipment, hot water systems, lighting, and pool or spa pumps. It also accounts for on-site energy generation — solar PV panels and battery storage can offset consumption and improve the score.
New houses must achieve a minimum Whole-of-Home score of 60 out of 100. New apartments must achieve at least 50. A score of 100 represents a net-zero energy home — one that generates as much energy as it uses. Scores above 100 are possible where the home generates more than it consumes.
The Whole-of-Home rating is a meaningful shift. Under the old rules, two homes with identical thermal shells could have wildly different running costs depending on their appliance and system choices. The Whole-of-Home framework closes that gap by making those choices part of the compliance conversation.
This is the critical point many people miss: you need to pass both ratings. A beautifully oriented, well-insulated home with poor appliance choices and no solar can fail the Whole-of-Home test. A home loaded with solar panels and heat pumps but built with inadequate insulation or poor glazing may fail the NatHERS thermal rating. The intent is to push design teams and builders to consider the whole picture from the outset.
Think of it this way: NatHERS rates the house as a container — how well it holds heat in winter and resists it in summer. Whole-of-Home looks at everything running inside that container and how efficiently the household operates. You need both to pass.
NCC 2022 applies nationally, but adoption is a matter for each state and territory. As of early 2026, this is where things stand:
New South Wales — Adopted increased BASIX thermal performance standards aligned with 7 stars from 1 October 2023. NSW uses BASIX rather than NatHERS for its Whole-of-Home equivalent, so the compliance pathway differs from other states.
Victoria — Mandatory from 1 May 2024. All new homes must achieve 7-star thermal performance plus a Whole-of-Home score of at least 60. Victoria has also removed the former requirement to install either a solar water heater or rainwater tank, allowing homeowners to choose their preferred hot water system under the new framework.
Queensland — Adopted from 1 May 2024. Queensland previously allowed nominal credits for outdoor living areas and ceiling fans under the Queensland Development Code. Those credits have been removed under NCC 2022, and the state has moved to the full 7-star requirement. There are allowances for 6 and 6.5 star homes with a compliant outdoor living area in NCC climate zones 1 and 2 (tropical north).
Australian Capital Territory — Adopted from 15 January 2024, including the 7-star minimum and Whole-of-Home requirements.
South Australia — Adopted from 1 October 2024 under what the state calls its “Modern Homes” provisions. SA includes concessions for small and irregular allotments, worker accommodation, and off-site manufactured buildings of 70 square metres or less — these must meet the 6-star thermal requirement but still comply with Whole-of-Home and condensation management. SA has delayed the application of these provisions to alterations and additions to existing homes until 1 May 2026.
Western Australia — Volume Two of NCC 2022 (covering houses and residential buildings) became mandatory from 1 May 2025. WA had transitional arrangements for Class 2 apartment buildings, with full NCC 2022 Volume One requirements also applying from 1 May 2025.
Tasmania — Initially deferred the 7-star provisions and has continued to take a cautious approach. Tasmania has also paused implementation of NCC 2025 measures.
Northern Territory — Has not adopted the NCC 2022 residential energy efficiency changes. The NT continues to build to 5-star requirements under BCA 2009.
If you are starting a new build today, in most jurisdictions you are building under NCC 2022 requirements. If you have an existing approval or are partway through a project, check with your building certifier or surveyor about which version of the NCC applies to your situation, as transitional arrangements have varied by state.
Building ministers agreed in October 2025 that NCC 2025 will be published by 1 February 2026, with states and territories able to consider adoption from 1 May 2026. However, there will be no additional residential energy efficiency changes in NCC 2025 — the 7-star and Whole-of-Home requirements introduced under NCC 2022 remain in place.
In August 2025, the federal Minister for Housing announced that new residential regulation changes to the NCC will be paused until mid-2029 (except for essential safety and quality changes). This means the 7-star framework is the standard the industry will be working to for the foreseeable future. There is no imminent move to 8 stars or beyond — the focus now is on industry bedding down the current requirements.
The 7-star NatHERS and Whole-of-Home requirements primarily apply to new builds, not general renovation work on existing homes. However, if a renovation triggers certain thresholds — typically a substantial addition or extension, or work that affects more than 50% of the existing building — energy efficiency requirements can apply to the new work.
This is a complicated area that varies by jurisdiction. In Victoria, the VBA advises consulting with a registered building surveyor to determine the extent of compliance required. In South Australia, the application of modern homes provisions to alterations and additions has been delayed until 1 May 2026 to give industry time to adjust.
For homeowners upgrading an existing property, these standards often bring forward the need to reassess older window systems that fall short of current performance expectations. Replacing outdated single-glazed or poorly sealed windows can make a measurable difference to both thermal comfort and energy bills, even where full NCC 2022 compliance is not triggered. If you are considering this step, this guide to window replacement in Melbourne outlines what to expect and how to approach upgrades in line with modern efficiency requirements.
The short answer: check with a building certifier early, particularly for larger renovation projects. Do not assume your renovation is exempt — and do not assume it requires full compliance either. Get specific advice for your situation.
This is where most coverage falls short. Generic statements about costs “potentially increasing” do not help anyone make decisions. Here is what the data actually shows.
The Australian Glass and Window Association (AGWA) reported that implementing the new energy efficiency standards has raised construction costs by an average of approximately $4,300 per home nationally. CSIRO research found that in states where the standards have been in effect, over 75% of new homes in NSW are now rated above 7 stars, suggesting the industry has adapted without the dramatic cost increases some predicted.
The cost impact varies significantly by state and design approach. In NSW, where average home sizes have grown over 10% and window areas have increased by about 10 square metres since adoption, double glazing usage has risen to cover around 27% of average window areas — contributing to higher costs. In Queensland, where home sizes have remained stable and window areas have slightly decreased, cost increases have been more modest because many homes did not require double glazing to achieve compliance.
Analysis for NCC 2022 showed the new standards would save an average Victorian household at least $300 a year in energy bills. More recent analysis by Renew found even higher savings — $1,056 per year for an all-electric home in Melbourne and slightly less for a dual-fuel home. On those figures, the payback period on additional upfront costs can be as short as four to five years for an all-electric home, after which the ongoing savings are clear benefit.
The typical cost drivers are upgraded glazing (double glazing or improved Low-E specification where single glazing was previously used), additional or higher-specification insulation, transition from gas to electric hot water and heating systems, and NatHERS assessor fees for energy modelling. Where homeowners and builders sometimes overcapitalise is in paying premium prices for glazing or materials that go well beyond what the compliance model actually requires. Getting energy modelling done early lets you spend where it counts and avoid spending where it does not.
Passive design principles — maximising winter sun through correct orientation, providing eave shading for summer, enabling cross-ventilation through room layout — have always influenced energy efficiency. Under the 7-star requirement, they become harder to ignore.
As NatHERS expert Dave Rochford from the ABCB has noted, building for 7 stars at its foundation begins with good design and orientation. If you build for the local climate, allowing for shade and solar access as appropriate, you will only need to make minimal changes to other building elements such as eave width and cross-ventilation. Getting orientation right on the block makes a significant difference to thermal performance and the NatHERS rating.
A poorly oriented home, or one with large west-facing glazing and no external shading, will struggle to reach 7 stars through insulation alone. It is possible to compensate, but usually at higher cost. Getting orientation and layout right from the beginning is far more cost-effective than making up the difference with expensive materials later.
Wall, ceiling, and floor insulation levels will in many cases need to increase to meet 7 stars. The specific R-values required vary by climate zone — a home in Hobart needs to retain winter warmth more aggressively than one in Darwin. NatHERS modelling accounts for this, which is why climate-zone-specific energy modelling is so important.
In practical terms, moving from R3.5 to R5.0 ceiling insulation, improving wall insulation continuity, and addressing thermal bridging through framing can all contribute meaningfully to the NatHERS score. Insulation can also be extended to new areas — underneath the slab, the garage, and internal walls, especially to unconditioned zones like laundries and bathrooms. However, care needs to be taken not to increase condensation risk, and NCC 2022 includes improved condensation mitigation provisions for this reason.
NatHERS also rewards homes with fewer ceiling penetrations. Where possible, replacing downlights that are not IC4-rated, roof windows, and skylights with alternative lighting options allows for continuous ceiling insulation and improves the rating.
This is an area where the changes have real product-level implications. Standard single-pane glazing was already inadequate for most compliance scenarios, but under 7-star requirements, the performance specification of windows and doors becomes critical — particularly in climate zones with significant temperature extremes.
Double glazing with Low-E coatings, thermally broken frames, and appropriate SHGC values suited to orientation and climate are increasingly the baseline, not a premium option. This is particularly relevant for homes with large glazed areas, corner windows, or significant north or west-facing glass.
Importantly, double glazing is not mandatory in all cases. Most homes will require high-performance glazing to some degree, but homes with good orientation may be able to reach 7 stars with a limited amount of single glazing in some positions. The NCC allows flexibility across design, materials, and orientation — it does not place specific restrictions on window size. The style of window, type of glazing, window coverings, and external shading are all ways that windows can be made more energy efficient without compromising on size.
NatHERS includes both default and custom window options. Choosing defaults will typically result in a lower rating, so specifying custom windows where all specifications are known — U-Factor, SHGC, frame material and performance — allows for greater accuracy and usually a better result.
It does not mean every home needs triple glazing or the most expensive system available. It means glazing needs to be chosen with the thermal model in mind, not selected purely on aesthetics.
This remains arguably the most under-discussed factor. A home that leaks air around window frames, door seals, exhaust fans, recessed downlights, and service penetrations loses conditioned air and allows external air in — regardless of how good the insulation or glazing is.
NCC 2022 does not mandate airtightness testing for most residential projects, and there are no specific changes to building sealing or airtightness requirements in the current code. However, airtightness is implicitly rewarded in NatHERS modelling and is often the difference between a home that performs as modelled and one that underperforms in practice. Builders who pay attention to sealing penetrations, installing well-fitting door seals, and using continuous insulation membranes will produce better-performing homes and fewer complaints.
The Whole-of-Home requirement makes the choice of heating, cooling, and hot water systems part of the compliance conversation in a way they were not before. Heating and cooling accounts for around 40% of a home’s annual energy usage, and hot water accounts for around 23% — making these the two most important appliance categories for the Whole-of-Home score.
Highly efficient reverse-cycle heat pumps score significantly better than gas ducted heating. Heat pump hot water systems perform much better than electric resistance or gas storage systems. LED lighting throughout is now expected as standard.
This does not mean gas is automatically non-compliant, but the modelling typically makes it harder to meet the Whole-of-Home budget with an all-gas system than with an electrified approach, particularly without solar PV to offset consumption.
Two often-overlooked factors can make a meaningful difference to a NatHERS rating without significant cost. Adding ceiling fans in all habitable rooms improves both the rating and occupant comfort — the modelling accounts for the reduced cooling load fans provide.
Roof and wall colour also matters more than many people expect. Moving away from dark roof colours in warmer climates can noticeably improve the rating. Even adjusting window frame colours can make a difference. These are low-cost or no-cost decisions that should be made deliberately during design rather than defaulted to for aesthetic reasons alone.
A relatively low-cost way to improve a NatHERS rating is to include more internal doors in the design. Doors at the end of corridors, at the bottom of stairs, or near rooms that are only occasionally used (media rooms, rumpus rooms) allow the NatHERS software to apply mechanical heating and cooling estimates more accurately to the spaces that actually need conditioning. This is a design decision that costs very little but can contribute meaningfully to the rating.
The most common mistake is trying to solve compliance through one element — usually glazing or insulation — rather than treating the design as a system. A few principles help:
Start with orientation. Correct orientation costs nothing in a new build if it is decided at the brief stage. Getting it wrong costs significantly more to compensate for later.
Engage a NatHERS assessor early. This is consistently the single most important piece of advice from every expert and authority on this topic. Commissioning a NatHERS assessment during design development — not after documentation is finalised — lets you identify and resolve compliance issues before they become costly redesign problems. Accredited assessors are extensively trained to improve ratings and provide options to reach 7 stars. If a design includes features that make compliance harder (large west-facing windows, for example), an assessor engaged early can identify mitigation options — better insulation, climate-appropriate glazing, colour choices — while the design is still flexible.
Understand your climate zone. The adjustments needed in tropical Queensland are different from those in coastal Victoria or inland NSW. NatHERS modelling is climate-zone specific — requirements in NCC climate zones 1 and 2 (tropical) differ significantly from those in zones 6 and 7 (temperate) or zone 8 (alpine). Generic advice about insulation or glazing does not substitute for climate-specific design.
Choose systems deliberately. A heat pump hot water system and efficient reverse-cycle air conditioning might get your Whole-of-Home score over the line without needing to add solar panels. Or solar might be the most cost-effective way to lift the score. The modelling tells you which levers matter most for your specific design.
Do not over-specify glazing. Better glazing helps, but there is a point of diminishing return. If the NatHERS model shows you at 7.2 stars with standard double glazing, upgrading to triple glazing spends money that does not improve compliance or comfort proportionally.
Consider solar PV strategically. Solar panels are not compulsory, but they are one of the most straightforward ways to improve the Whole-of-Home score because they offset the home’s grid energy consumption. Even a modest system can make the difference between a borderline score and comfortable compliance. However, solar should complement good design — it should not be used to compensate for a poorly performing building shell.
Leaving the energy assessment until late in the design process. By the time construction documentation is finalised, changing orientation, glazing placement, or wall construction is expensive. NatHERS modelling should inform the design, not validate it after the fact.
Assuming any double glazing will solve the problem. Glazing specification matters — U-Factor, SHGC, frame performance, and installation quality all affect the outcome. A double-glazed window with a thermally poor aluminium frame and no Low-E coating performs very differently from a well-specified system with thermally broken frames and appropriate coatings for the orientation.
Confusing NatHERS star rating with overall energy efficiency. A home with a high NatHERS thermal rating but an old gas storage hot water system, inefficient fixed appliances, and no solar can still fail the Whole-of-Home budget. Both ratings need attention.
Assuming renovations are exempt. Significant additions or alterations can trigger energy efficiency requirements for the new work. The threshold varies by state — in Victoria, renovations affecting more than 50% of the existing building may need to comply. Get advice from a certifier before assuming your renovation is unaffected.
Using default window specifications in NatHERS modelling. Default glazing values in NatHERS software are conservative. Specifying custom window configurations — where all performance data is known — almost always produces a better rating outcome. Ask your window supplier for the specific U-Factor, SHGC, and frame performance data so your assessor can model it accurately.
Relying on the builder to manage compliance without engaging an assessor early. Builders are responsible for building to approved plans, but energy compliance is typically managed through the assessment and approval process. The homeowner and designer need to ensure the design is compliant before it reaches the builder.
If you are building a new home, the most useful immediate actions are:
If you are renovating, check with a building certifier early about whether the scope of your work triggers energy efficiency requirements. If it does, the same principles apply — model early, design deliberately, and understand what is actually required rather than what is assumed.
The 7-star NatHERS requirement and Whole-of-Home energy budget represent a genuine uplift in what Australian homes are required to achieve — and with the regulatory pause announced through to mid-2029, this is the standard the industry will be working to for years to come. For most projects, meeting the new standards is achievable without dramatic cost increases if the design process is approached sensibly and early.
The key insight is this: compliance is a design problem, not a product problem. It is solved through orientation, insulation continuity, appropriate glazing, good sealing, deliberate system choices, and attention to details like ceiling fans, roof colour, and internal zoning — not by throwing money at the most expensive materials available. Engage the right professionals early, model the design before it is locked in, and treat energy performance as a design input rather than an approval hurdle.
It is the minimum NatHERS thermal performance rating now required for new Class 1 residential buildings (houses and townhouses) under NCC 2022. NatHERS rates how well a home’s building fabric — insulation, glazing, construction materials, and design — passively maintains comfortable indoor temperatures. The rating runs from 0 to 10, and the minimum has moved from 6 to 7 stars.
Most states adopted the 7-star and Whole-of-Home requirements between late 2023 and late 2024. NSW adopted aligned BASIX thermal standards from October 2023. The ACT adopted from January 2024. Victoria and Queensland adopted from May 2024. South Australia adopted from October 2024. Western Australia’s full adoption took effect from May 2025. Tasmania and the Northern Territory have not adopted the full requirements.
Not for residential buildings. NCC 2025 (published February 2026, adoption from May 2026) contains no additional residential energy efficiency changes. Building ministers have also agreed to pause new residential regulation changes until mid-2029, meaning the 7-star framework is the standard for the foreseeable future.
Primarily new builds. However, significant renovations or additions — such as work affecting more than 50% of the existing building, or a substantial addition — can trigger energy efficiency requirements for the new work. The threshold varies by state, and some states (such as South Australia) have delayed the application of these provisions to existing home alterations. Speak with a building certifier early in your renovation planning.
NatHERS measures passive thermal performance — how well the building shell resists heat transfer and maintains comfortable temperatures without mechanical systems. Whole-of-Home measures total energy consumption, including fixed appliances (heating, cooling, hot water, lighting, pool pumps) and any solar generation. Houses must achieve at least 7 stars on NatHERS and at least 60 out of 100 on Whole-of-Home. Both must be satisfied.
AGWA data shows the average additional cost has been approximately $4,300 per home nationally. The actual figure varies by state, home size, design, and climate zone. In Victoria, analysis showed annual energy savings of at least $300, with Renew finding savings of up to $1,056 per year for all-electric homes — meaning payback periods of roughly four to ten years depending on the approach taken.
No, solar panels are not compulsory. However, they are one of the most effective ways to improve the Whole-of-Home score because they reduce net energy consumption from the grid. Some designs may find solar the most cost-effective path to compliance; others may achieve it through efficient appliance selection alone — particularly with a heat pump hot water system and efficient reverse-cycle air conditioning.
No. Double glazing is not a mandatory requirement under NCC 2022. However, most homes will require high-performance glazing to some degree to reach 7 stars. Homes with excellent orientation may be able to achieve compliance with limited single glazing in some positions. The style of window, type of glazing, coatings, window coverings, and external shading all contribute to glazing performance — it is not a binary choice between single and double.
A licensed NatHERS assessor runs the thermal performance modelling. Around 90% of new home designs in Australia are assessed using NatHERS. The assessment should happen during the design development phase — before documentation is finalised — so that compliance issues can be resolved through design adjustments rather than costly late changes. A Whole-of-Home assessment adds only an extra 10 to 15 minutes on top of the thermal rating and can be done by the same assessor.
Orientation and passive design have the greatest impact at the lowest cost. After that, insulation levels, glazing performance (U-Factor, Low-E coating, SHGC suited to climate and orientation), airtightness, ceiling fans, roof and wall colour, internal zoning with doors, and the efficiency of heating, cooling, and hot water systems all contribute. No single element is the whole answer — performance comes from how these work together as a system.
The NCC provides the national framework, but state adoption timelines and specific variations differ. Within the framework, NatHERS modelling is climate-zone specific. Australia has eight NatHERS climate zones, and requirements in tropical Queensland (zones 1 and 2, where allowances exist for 6 or 6.5 stars with compliant outdoor living areas) differ significantly from temperate Victoria (zone 6) or the alpine region (zone 8). A NatHERS assessor will apply the correct climate data for your location automatically.
It depends on when the design was developed and what transitional arrangements applied in your state at the time of lodgement. If you have an existing design that has not yet been approved, it is worth running it through NatHERS assessment under NCC 2022 to see where it sits — it may be closer to compliance than you expect, or it may need targeted adjustments. Many well-designed homes that were already close to 7 stars under the old requirements need only modest changes to reach compliance.