In short
The key facts, before you read on
New homes approved in Victoria must reach a minimum 7-star NatHERS rating, up from 6 stars, since 1 May 2024.
A second measure, the Whole-of-Home rating, applies alongside it; Victoria’s minimum score is 60 out of 100.
The old rule forcing a choice between solar hot water and a rainwater tank has been removed; you now pick your own hot water system.
Expect changes to glazing, insulation and sealing, not just appliances; the whole home is part of the rating.
Homes make up a large share of Victoria’s electricity and gas use, so raising the standard is meant to make everyday bills easier over time.
No national move to an 8-star minimum is currently scheduled before mid-2029, with residential NCC changes paused apart from essential safety and quality updates.
What is the 7-star energy rating, and why did it change?
For more than a decade, six stars out of a possible ten was the least a new home needed to score under the Nationwide House Energy Rating Scheme, known as NatHERS. That changed on 26 August 2022, when Victoria agreed to lift the minimum to 7 stars as part of the 2022 update to the National Construction Code. The new rule became mandatory for building approvals from 1 May 2024.
In plain terms, the rating simply measures how well a home’s design holds a comfortable temperature on its own. Think of the walls, roof, windows, insulation and the direction the home faces. A higher star rating means the home naturally stays cooler in summer and warmer in winter, without leaning so hard on the air conditioner or heater.
This matters for modern home builders because a house is built to last for decades, not years. In Victoria, energy used inside homes already makes up a large share of the state’s electricity and gas use. Lifting the minimum standard is aimed at homes that are cheaper to run and more comfortable through Melbourne’s hot summers and cold, damp winters, for as long as the home stands.
For anyone comparing new home builders in Melbourne right now, this is the single biggest shift in how a home is designed and assessed in over ten years. It starts with the very first floor plan, not an add-on at the end.
6-star vs 7-star: what's actually different
On paper, it looks like a one-point jump. In practice, each extra star gets harder to reach, because the easiest, cheapest wins are already used up by the time a design hits 6 stars. Getting to 7 usually means improving several parts of the home together, rather than making one big change.
| Element | Typical 6-star approach | Typical 7-star approach |
|---|---|---|
| Glazing | Single glazing common in some designs | Higher-performance glazing may be used, depending on the design and assessment |
| Insulation | Standard wall and ceiling batts | Improved insulation levels and installation may be required |
| Airtightness | Limited focus on sealing | Deliberate sealing of gaps, ducts and penetrations |
| Hot water | Solar hot water or rainwater tank required | Free choice of system, assessed under Whole-of-Home instead |
The Whole-of-Home rating, explained
The star rating only measures the building shell, the part that keeps the weather out. The 2022 update to the National Construction Code introduced a second, separate measure called the Whole-of-Home rating. It looks at the energy used by everything fixed inside the home: heating, cooling, hot water, lighting, and pool or spa pumps where they exist. It can also factor in rooftop solar as an offset.
It’s scored out of 100, and Victoria’s minimum is a score of 60. This is the part that gives homeowners more flexibility than the old rules did. Instead of being told exactly which appliance to install, families and their modern home builders can now choose the mix of systems that gets the home over the line: a reverse-cycle unit here, a heat pump hot water system there, or well-placed ceiling fans doing some of the work.
That flexibility replaced a much stricter old rule: previously, Victorian homes had to include either a solar hot water system or a rainwater tank connected to the toilets. That statewide NCC requirement has been removed under NCC 2022, giving households greater flexibility in their hot water system choice, subject to the applicable energy, planning and site requirements.
Timeline: when these rules apply to you
26 August 2022
Victoria formally agrees to the increased energy efficiency provisions under the National Construction Code 2022, lifting the minimum from 6 to 7 stars.
1 January 2024
New planning permit applications for new dwellings and apartment developments are generally prohibited from connecting to reticulated natural gas. Broader all-electric requirements for new Victorian homes are scheduled to commence from 1 January 2027.
1 May 2024
The 7-star NatHERS rating and the Whole-of-Home requirement both become mandatory in Victoria for new building approvals.
2025 – mid-2029
No further residential energy changes are scheduled. Commonwealth, state and territory building ministers have agreed to pause residential changes to the National Construction Code nationally until at least mid-2029, aside from essential safety updates, so 7-star remains the standard to plan around.
What it means for your build
If you’re weighing up new home builders in Melbourne at the moment, the 7-star and Whole-of-Home rules touch more of the build than most people expect. Here’s where families usually feel it most.
1
Windows & glazing
Expect double glazing or upgraded Low-E glass on many designs, along with closer attention to window size and which way each room faces.
2
Insulation
Higher-performing insulation in walls, ceilings and sometimes floors, installed carefully so there are no gaps that let performance slip.
3
Sealing & draughts
More care around airtightness, sealing gaps near doors, windows, exhaust fans and downlights that used to be treated as small details.
4
Fixed appliances
Heating, cooling, hot water and lighting choices now feed straight into your Whole-of-Home score, so efficient equipment helps with comfort and compliance at once.
Want a home designed around the new standard?
We design our current home plans with Victoria’s 7-star and Whole-of-Home rules in mind — ask us to confirm the specifics for your block.
Choosing modern home builders for your area
Melbourne’s south-east covers everything from established suburbs like Dandenong to fast-growing communities such as Cranbourne, Clyde, Pakenham and Officer. The right modern home builders will already know exactly what the 7-star and Whole-of-Home rules mean for your block, its orientation and your council’s requirements.
Whether you’re comparing a home builder in Dandenong, Cranbourne, Pakenham, Clyde or Officer, ask early how they handle glazing, insulation and appliance choices under the current rules. A builder who is already fluent in these requirements will be able to walk you through your options without treating them as a last-minute compliance step.
It’s also worth checking with your local council about any additional planning requirements for your estate — Dandenong falls under the City of Greater Dandenong, Cranbourne and Clyde sit within the City of Casey, and Pakenham and Officer are part of Cardinia Shire. It’s also worth confirming your builder works with a NatHERS-accredited assessor as a standard part of the design process, not an afterthought.
How Truland Homes builds to 7-star as standard
Truland Homes designs every current home plan around one idea: families shouldn’t have to chase compliance costs after they’ve already signed a contract. Truland Homes states that its current designs are developed to meet Victoria’s 7-star and Whole-of-Home requirements as a normal part of the plan rather than an optional extra — ask your consultant to confirm this for the specific design and block you’re considering.
That sits alongside the same fixed-price promise that runs through the whole build: your price is confirmed in writing before work starts, plans are designed to move through council efficiently, and you have one dedicated contact from your first conversation through to handover.
Conclusion
Victoria’s move from 6 to 7 stars, together with the new Whole-of-Home rating, is the biggest change to home energy rules in more than a decade. It reaches into windows, insulation, sealing and appliances, but it also removes some of the old, rigid rules, like the forced choice between solar hot water and a rainwater tank.
For families comparing modern home builders right now, this standard isn’t going anywhere for years, so it’s worth choosing a builder who already designs around it as a matter of course.Truland Homes builds every current home design to meet Victoria’s 7-star and Whole-of-Home requirements as standard, backed by one fixed price agreed before work begins.
Common questions
FAQs about Victoria's 7-star energy rating
Straight, simple answers to the questions families ask us most often when planning a build.
Does the 7-star energy rating apply to renovations, or only new homes?
What if my building permit was approved before 1 May 2024?
Is the 7-star rating the same thing as the Whole-of-Home rating?
Do I still have to install a rainwater tank or solar hot water?
Will Victoria move to an 8-star standard soon?
Building in Victoria? Talk to a builder who designs around the 7-star standard.
Ask about how Truland Homes’ current designs and fixed-price contracts take today’s energy requirements into account, right from your first quote.
