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UNDERSTANDING HOME ENERGY RATING DISCLOSURE

January 19, 2026

The NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) is exploring a new program that could change how we talk about energy performance in the residential sector. It’s called Home Energy Rating disclosure, and the idea is simple: when a home is advertised for sale or lease, its energy rating is shown publicly.

While the focus is mainly on existing homes, the department is also looking at whether BASIX could be used to communicate the energy rating of new homes. At this stage, nothing about current BASIX requirements is changing. What might change is how performance is communicated to the market. 

This is work worth paying attention to, especially as demand grows for comfortable, efficient, low-carbon homes.

What Home Energy Rating Disclosure Actually Means

For the first time, potential buyers and renters would be able to compare homes not just based on layout, finishes or postcode, but on how efficiently the home performs. Essentially, energy performance becomes part of the value proposition.

Most of the work right now focuses on existing homes, which vary widely in performance. For new builds, the discussion centres on whether BASIX can act as the disclosure mechanism. Rather than adding complexity, the intention is to use what already exists and simply make it visible.

For those who have been championing better design, higher insulation levels, quality glazing, airtightness and sustainable material choices, this is a chance to finally have that work recognised when the home goes to market.

Why This Matters for the Industry

If the program goes ahead, it will help educate consumers about the long-term value of an energy-efficient home. Better design will no longer be something you need to explain; it will sit there on the listing.

This shift could:

  • Help high-performing projects stand out instantly
  • Increase the resale value of energy-efficient homes
  • Encourage owners to invest in upgrades before listing
  • Favour builders and architects who are already exceeding minimum standards

Importantly, DCCEEW has said the program is not intended to create extra work, slow approvals or add another layer of paperwork. The aim is a streamlined, practical approach that fits into the processes we already use.

The Role of High-Performance Timber Windows and Doors

If energy ratings become part of a property listing, the building envelope suddenly becomes a major selling feature. And this is where high-performance timber windows and doors make a measurable difference.

Here’s how they support higher ratings and better real-world comfort:

Thermal performance. Timber is a natural insulator, which means less heat transfer between inside and out. Compared with standard aluminium frames, timber can be the difference between just meeting compliance and achieving genuinely efficient results.

Compatibility with high-performance glazing. Timber frames easily support thicker double and laminated glazing. This is especially important for designers working toward Passive House principles or aiming to future-proof homes as energy standards continue to rise.

Airtightness. Precision-built timber windows and doors help control air leakage. This is one of the biggest contributors to energy loss, comfort issues and condensation risk.

Sustainability. Material choice will matter even more as consumers become more aware of embodied carbon. Timber, particularly stable and long-lasting species like Accoya, aligns with the environmental objectives behind the disclosure program.

Durability and long-term value. A well-made timber window has a long service life. When paired with quality glazing, it offers decades of comfort and performance with minimal maintenance.

Looking Ahead

If disclosure becomes standard practice in NSW, it has the potential to elevate the baseline of residential construction.  Homes that are better designed, better insulated and better built will stand out automatically.

For those already committed to high-performance outcomes, including the use of quality timber windows and doors, this is a welcome shift. It rewards good practice, encourages homeowners to value efficiency, and helps move the industry toward healthier, more resilient homes.

Have Your Say

DCCEEW is currently seeking feedback from industry. If you’d like to contribute, you can reach the Sustainable Homes Team at: sustainability@environment.nsw.gov.au

Learn more here

Image credits:

Architecture: Carter Williamson
Build: SFN Build
Photography: Katherine Lu
Location: Bondi, Sydney NSW

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UNDERSTANDING HOME ENERGY RATING DISCLOSURE

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