NSW: New sustainable building obligations commence for residential and non-residential development

On 1 October 2023, new Building Sustainability Index (BASIX) obligations commenced for residential and non-residential development offering improved measures to attain the required new energy standards.

BASIX standards were established in 2004 for improved energy and thermal efficiency in residential and non-residential buildings. The Sustainable Building State Environment Planning Policy (SEPP) allows developers and homeowners greater building standards options.

Among the new changes:

  • increasing thermal performance standards to a 7 star rating in accordance with the Nationwide House Energy Rating Scheme (NatHERS);
  • raising emission reduction obligations by 7 to 11% based on the dwelling type, size and location; and
  • compulsory building material emissions assessment and reporting on new residential and non-residential buildings (see the Department of Planning and Environment Embodied Emissions Technical Note for more information).


The new changes will result in reduced energy bills for residential and non-residential development.

Contracts for new homes prior to 1 October 2023 will be exempt from the new BASIX requirements until 30 June 2024. For more details see the Department of Planning and Environment transitional arrangements for generating a BASIX certificate fact sheet.

For further details see the NSW Government website.

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