Your electricity bill doesn't care whether your home was built in 1985 or 2024. But the rules governing how much energy your house and appliances should use have changed dramatically — and understanding them can help you spot where your money is leaking.
Australia has two main frameworks for energy efficiency standards: one for the things you plug in, and one for the building you plug them into. Both affect what you pay each quarter, even if you've never heard of either.
What Does the GEMS Act 2012 Cover?
The Greenhouse and Energy Minimum Standards (GEMS) Act 2012 is the federal law that sets minimum energy performance requirements for appliances and equipment sold in Australia. It's administered by the Department of Climate Change, Energy, the Environment and Water.
If you've ever looked at a star rating sticker on a fridge, washing machine, or air conditioner, you've seen GEMS in action. The Act covers around 20 product categories including lighting, televisions, motors, and commercial refrigeration.
The principle is straightforward: manufacturers can't sell products in Australia that fall below a minimum efficiency threshold. The star rating label then helps you compare products above that floor. More stars, less energy, lower bills.
GEMS standards are periodically reviewed and tightened. A fridge that earned 4 stars in 2010 might only rate 2.5 stars under current testing. This matters if you're running older appliances — they may be using significantly more energy than a modern equivalent, even if the old sticker looked impressive at the time.
How Do NCC 2022 and NatHERS Change New Homes?
The National Construction Code (NCC) 2022 introduced major upgrades to energy efficiency requirements for new residential buildings. The code is developed by the Australian Building Codes Board and adopted by states and territories on their own timelines.
The headline change: new homes must now meet a minimum NatHERS (Nationwide House Energy Rating Scheme) rating of 7 stars, up from the previous 6 stars. NatHERS rates a building's thermal shell — how well it holds heat in winter and keeps it out in summer — on a scale of 0 to 10.
But the NCC 2022 went further with a new concept called the Whole-of-Home energy budget. This looks beyond just the walls and windows. It accounts for fixed appliances like hot water systems, lighting, pool pumps, and space conditioning equipment.
Under Whole-of-Home, a new home must meet an annual energy budget. The thresholds vary by climate zone, but the key figures are a cap of 60 MJ per square metre per year for the total energy budget in most climate zones, with some zones set at 50 MJ/m²/year. Homes with rooftop solar can offset some of that budget.
The Victorian Department of Energy, Environment and Climate Action (DEECA) estimated that a home built to NCC 2022 standards could save around $300 per year on energy bills compared to one built to the previous code.
When Did Each State Adopt NCC 2022?
Because building regulation is a state and territory responsibility, adoption hasn't been simultaneous:
- NSW: October 2023
- ACT: January 2024
- VIC: May 2024
- QLD: May 2024
- SA: October 2024
[USER TO CONFIRM: WA, NT, and TAS adoption dates for NCC 2022 energy provisions — these were not provided in the brief and should be verified before publishing.]
If your home was built or approved before your state's adoption date, it was assessed under the older NCC 2019 standards (6-star minimum NatHERS, no Whole-of-Home requirement).
What's the October 2025 Pause on Residential Standards?
In October 2025, Building Ministers agreed to pause further changes to residential energy efficiency provisions in the NCC until mid-2029. This means the NCC 2022 standards remain in place, but no additional tightening of residential requirements will take effect before then.
The pause gives the construction industry time to adjust to the current requirements. It does not roll back NCC 2022 — homes still need to meet the 7-star NatHERS and Whole-of-Home budgets. It simply means the next round of upgrades won't arrive for several years.
Commercial building standards were not included in this pause.
What If Your Home Predates Current Standards?
Most Australian homes were built long before any of these rules existed. The 6-star NatHERS minimum only came in around 2010. Before that, many homes had no mandatory energy rating at all.
That doesn't mean you're stuck with high bills. Here's what actually moves the needle:
Draught sealing: Gaps around doors, windows, and exhaust fans can account for 15–25% of heating and cooling energy loss in older homes, according to the Australian Government's YourHome guide. A few dollars in weather stripping can make a measurable difference.
Insulation: If your ceiling has no insulation or has deteriorated batts, adding or replacing insulation is one of the highest-return upgrades available. Ceiling insulation alone can reduce heating and cooling costs by up to 45% in an uninsulated home.
Appliance upgrades: Thanks to GEMS, a new fridge or air conditioner will almost certainly use less energy than one bought 10–15 years ago. Check the Energy Rating website to compare models before buying.
Hot water: If you're still running an older electric storage hot water system, it could represent 20–30% of your total electricity use. Heat pump hot water systems use roughly a third of the energy for the same output.
Tariff review: Older homes often sit on tariff structures that no longer match their usage patterns. A controlled load tariff for hot water, or a time-of-use tariff if you can shift usage to off-peak hours, can reduce costs without any physical changes.
Frequently Asked Questions
What NatHERS rating do new homes need in Australia?
New homes must achieve a minimum 7-star NatHERS rating under NCC 2022. This applies to the thermal shell of the building. Homes must also meet a Whole-of-Home energy budget that includes fixed appliances.
Does the GEMS Act apply to second-hand appliances?
The GEMS Act 2012 applies to products at the point of supply — meaning when they're first sold or imported into Australia. Second-hand appliances sold privately aren't covered, which is why older appliances in your home may not meet current minimum standards.
Will energy efficiency standards get stricter after 2029?
Building Ministers paused further residential NCC changes until mid-2029. After that, additional upgrades are expected but not yet confirmed. GEMS appliance standards continue to be reviewed and updated on their own schedule, independent of the building code pause.
How much can NCC 2022 standards save on energy bills?
Victorian DEECA estimated around $300 per year in energy bill savings for a home built to NCC 2022 standards compared to the previous code. Actual savings depend on climate zone, household size, and energy use patterns.
How do I know if my home meets current energy efficiency standards?
If your home was built before your state adopted NCC 2022, it was assessed under older standards. You can get a NatHERS assessment from an accredited assessor to find your home's current rating, though there's no legal requirement to upgrade existing homes.
Whatever your home's age or rating, the biggest savings usually come from understanding what you're actually paying for. Upload your bill for a free analysis at BillDecoder and see exactly where your money is going — no commissions, no switching pressure, just a clear breakdown of your charges.
Last updated: June 2025