The New South Wales (NSW) Government is progressing reforms to improve transparency around residential energy performance, with a new voluntary disclosure scheme set to give buyers and renters clearer insights into how homes use energy.
Under the initiative, property owners in NSW will be able to share a home’s energy rating when selling or leasing. The move forms part of the Consumer Energy Strategy and is designed to help households better understand expected energy use, running costs and overall comfort before making property decisions.
Home energy ratings assess how efficiently a dwelling maintains indoor temperatures and its likely energy consumption. Similar to appliance star ratings, they provide a simple benchmark for comparing properties. This is particularly relevant for Australia’s existing housing stock, where many homes lack accessible performance data.
Greater visibility of energy performance is expected to support more informed decision-making across the market. Prospective buyers and tenants can compare operational costs, evaluate emissions impacts and identify opportunities for upgrades. For sellers and landlords, disclosure may enhance property appeal in a market increasingly influenced by energy efficiency and cost-of-living pressures.
The rollout in NSW will follow a staged approach. Initial trials began in September 2025, including live testing with the real estate sector, research projects and targeted consultation with industry stakeholders. These trials explored how energy ratings could be integrated into standard sales and leasing processes, as well as the level of support required for agents and households.
From mid-2026, the scheme will move into a voluntary disclosure phase, incorporating insights from the trial period. A future transition to mandatory disclosure is under consideration, subject to market readiness and evaluation outcomes. If implemented, this would require energy ratings to be publicly disclosed in property advertisements.
The program is being led by the NSW Department of Climate Change, Energy, the Environment and Water, supported by industry and government partners. An Industry and Consumer Reference Group has also been established to guide the rollout.
At a national level, the expansion of the Nationwide House Energy Rating Scheme (NatHERS) is underpinning the initiative. Traditionally focused on new homes, NatHERS is being extended to existing dwellings, supported by a growing network of accredited assessors.
For more information, visit the NSW Government website.
