The New 7-Star & Whole-of-Home Rules: What Every New Home Builder Should Know

If you’re planning to build a new home, you’ve probably heard about the new 7-star energy efficiency and Whole-of-Home (WOH) requirements.

While these standards have been introduced nationally through the National Construction Code (NCC 2022), each state and territory has adopted them on its own timeline, so it’s important to understand what applies to your project.

From 6 Stars to 7

The previous minimum standard for new homes was generally a 6-star NatHERS energy rating. Under the updated requirements, most new homes must now achieve a minimum 7-star thermal performance rating, meaning the building itself is designed to stay cooler in summer and warmer in winter. This is generally achieved through better insulation, glazing, ventilation and overall building design, resulting in better comfort for users and lower heating and cooling costs.

The Whole-of-Home Assessment

The new Whole-of-Home assessment goes a step further. Instead of only assessing the building envelope, it also considers the energy performance of major appliances and systems, including heating, cooling, hot water, swimming pools, spas and solar photovoltaic systems. The aim is to ensure your home operates efficiently as a whole — not just that it’s well insulated.

Where the Rules Apply

For most states and territories, including Queensland, Victoria, South Australia, Tasmania, the ACT and the Northern Territory, these updated energy efficiency requirements now apply to new residential building approvals.

New South Wales achieves similar energy outcomes through its BASIX framework, while Western Australia has adopted the requirements on a different timetable with its own transitional arrangements.

For new builds, your building certifier cannot issue a building permit unless your building plans pass the two tests: the 7-star building shell and the Whole-of-Home energy budget.

What It Means for Your Budget

There has been criticism that these higher standards increase upfront construction costs, and this has proven to be true in most cases. However, it is hoped that there will be longer term benefits of these changes through lower energy bills.

Before finalising your plans, speak with your builder, designer or energy assessor to ensure your home complies with the requirements in your state and is designed to perform efficiently from day one.