Will You Need an Energy Rating to Sell Your House in NSW?

The NSW Voluntary Disclosure Pilot: What's Happening Now

The NSW Government's voluntary pilot encourages sellers to include energy performance information in their property listings. Here's what the pilot involves:

• Voluntary participation: Sellers can choose to include a NatHERS star rating in listings and contracts
• Market testing: The pilot is building familiarity with energy ratings among buyers, sellers, and agents
• Data collection: The government is gathering evidence to inform the mandatory scheme design
• No penalties: There's currently no consequence for not participating — but that changes when it becomes law

The pilot mirrors how the ACT introduced its scheme — voluntary first, then mandatory. In the ACT, the transition happened quickly once the market infrastructure was in place. NSW is building that infrastructure now.

The Path from Voluntary to Mandatory

Here's what we know about the timeline:

What Is Mandatory Energy Disclosure?

Mandatory energy disclosure requires sellers to obtain and share an energy performance certificate when listing a property for sale. The certificate provides buyers with a clear, standardised picture of the home's energy efficiency — similar to how a car has a fuel efficiency label.

In NSW, this will use the NatHERS (Nationwide House Energy Rating Scheme) framework. A NatHERS star rating from 0 to 10 measures how much energy your home needs for heating and cooling. You'll need an accredited NatHERS certificate — not a generic energy report.

• Transparency: Buyers know exactly what they're purchasing — no surprises on energy bills
• Market incentive: Higher-rated homes command premium prices (3–10% based on CSIRO research)
• Emissions reduction: Creates financial incentive for energy efficiency upgrades across NSW housing stock

Which Properties Will Need an Energy Rating?

Based on the ACT model and the NSW pilot scope, mandatory disclosure is expected to apply broadly:

• ✅ Standalone houses — all sizes and ages
• ✅ Townhouses and duplexes — including strata-titled
• ✅ Apartments and units — individual unit assessments
• ✅ Semi-detached and terrace homes
• ⚠️ Heritage-listed properties — may have modified requirements or exemptions
• ❌ Vacant land — no structure to rate

Note: Final exemptions will be confirmed when legislation is enacted. Properties with existing BASIX certificates from construction may satisfy some requirements — see the BASIX section below.

What Does the Rating Process Involve?

Getting a NatHERS assessment for your NSW property is straightforward:

1. 1. Book a NatHERS-accredited assessor — Find one through our NSW assessor directory or by city: Sydney, Newcastle, Wollongong. Only accredited assessors can issue legally valid certificates.
2. 2. Provide plans or arrange an inspection — If you have original building plans, great. If not, the assessor will do a site inspection to measure and document your home's construction, insulation, glazing, and orientation.
3. 3. The assessor models your home — Using CSIRO-accredited software (FirstRate5, BERS Pro, or equivalent), the assessor inputs your home's details and your NatHERS climate zone to calculate thermal performance.
4. 4. Receive your certificate — You'll get an official NatHERS certificate showing your star rating, heating/cooling loads, and (under the new existing homes format) upgrade recommendations. Turnaround is typically 3–7 business days.

How Much Does a NatHERS Assessment Cost in NSW?

Pricing varies by home size, complexity, and location within NSW:

For context, this is a fraction of typical selling costs. Agent fees alone run $15,000–$30,000+ on a median Sydney property. The energy rating is a small investment that can increase your sale price — CSIRO research shows buyers pay premiums of 3–10% for energy-efficient homes.

See our full pricing breakdown by state and home type →

BASIX vs NatHERS: What NSW Sellers Need to Know

If your NSW home was built after 2004, it may have a BASIX certificate. BASIX (Building Sustainability Index) was NSW's own system for ensuring new builds met energy and water targets. Here's how it relates to NatHERS:

• BASIX was NSW-only. NatHERS is the national standard now being adopted across all states for energy disclosure.
• Different scope. BASIX covered water efficiency, thermal comfort, and energy use. NatHERS focuses specifically on thermal performance (star ratings) and the new Whole of Home score.
• May not be sufficient. A BASIX certificate from 2010 doesn't directly translate to a NatHERS star rating. Final rules on BASIX equivalency are being determined, but you should plan for a separate NatHERS assessment.
• Pre-2004 homes need assessment. If your home was built before BASIX existed, you'll definitely need a fresh NatHERS assessment.

How to Prepare Now: Step-by-Step

Whether you're selling soon or in a few years, here's how to get ahead:

1. 1. Gather your building plans — Original plans, renovation approvals, and specifications. If you don't have them, check with your local council — they often hold copies. No plans means the assessor works from a site inspection (slightly higher cost).
2. 2. Check for existing certificates — Look for any BASIX certificate or previous NatHERS assessment. Learn how to find existing ratings →
3. 3. Get a free estimate first — Use our free calculator to understand where your home might sit on the star scale before paying for a formal assessment.
4. 4. Book a certified assessor — Find NatHERS assessors in NSW or search by city: Sydney, Newcastle, Wollongong.
5. 5. Consider quick improvements — Simple upgrades like ceiling insulation ($1,500–$3,000) or draught sealing ($200–$500) can boost your rating by 1–2 stars and increase your sale price significantly. See our efficiency improvement guide →

How a Good Rating Helps You Sell

A strong energy rating isn't just compliance — it's a competitive advantage in the NSW property market:

• Price premium: CSIRO studies show energy-efficient homes sell for 3–10% more than comparable inefficient properties
• Faster sales: Energy-conscious buyers actively seek rated homes — and their numbers are growing fast
• Marketing angle: "7-star energy rating" is a powerful listing feature — as compelling as a renovated kitchen
• Buyer confidence: Transparency builds trust and reduces price negotiation pressure
• First-mover advantage: During the voluntary phase, being one of the few listings with a verified rating makes your property stand out

What If My Home Gets a Low Rating?

Don't panic. The average Australian home rates just 2.9 out of 10 stars. Most older NSW homes will rate between 1–4 stars — that's expected for buildings constructed before modern energy standards.

• You can still sell. The rating is for disclosure, not a minimum threshold. Buyers make informed decisions — many prefer a low-rated home in a great location over a high-rated home elsewhere.
• Low ratings = upgrade opportunity. Savvy buyers see a low-rated home as an opportunity to improve and add value — especially with government rebates available through the energy efficiency rebate programs.
• Quick wins exist. Adding ceiling insulation alone can jump a home from 2 stars to 3.5–4 stars for under $2,000.
• Price accordingly. A transparent low rating is better than no rating and potential legal complications when disclosure becomes mandatory.

What About Landlords and Rental Properties?

While the initial focus is on property sales, landlords should be aware:

• Rental disclosure is on the horizon. The ACT already requires energy ratings on rental listings. NSW is expected to follow the same progression: sales first, then rentals.
• Minimum standards are coming. Several states are exploring minimum energy performance standards for rental properties — a low rating today could mean mandatory upgrades tomorrow.
• Tenant demand is rising. With electricity prices up 120% in a decade, tenants increasingly factor energy costs into rental decisions. A rated property can command higher rents.
• Get assessed now. Understanding your rental property's rating now lets you plan upgrades strategically — see how energy costs are shaping decisions →

NSW vs Other States: Where Does Energy Disclosure Stand?

NSW is joining a national trend towards energy transparency in property transactions:

• ACT: Mandatory since 1999 — energy ratings must appear on all property listings. The longest-running scheme in Australia and the model NSW is following.
• Victoria: The Scorecard program is transitioning to NatHERS by June 2026. VEU program incentivises ratings.
• Queensland: Sustainability declarations already required at sale, with energy rating components expanding.
• South Australia: Building sustainability requirements for new builds, with sales disclosure under review.

The national push for existing home ratings means this requirement will expand across all states. Getting ahead of the curve protects your investment.