For a new house in NSW the energy efficiency approval document is the BASIX certificate, issued through the NSW Planning Portal under State Environmental Planning Policy (Sustainable Buildings) 2022, and it must be lodged with the development application with its commitments marked on the plans. Since 1 October 2023 the BASIX thermal performance standard has matched the 7 star level that NCC 2022 introduced nationally through Part H6 of Volume Two, so the house has to be designed for 7 stars before the DA is drawn, not after consent. The certifier checks the same commitments again at construction certificate stage and before the occupation certificate. This article gives owner builders the sequence: what BASIX measures, how the NatHERS assessment feeds it, what the Sustainable Buildings SEPP changed, what the DA plans must show and where the owner-builder permit fits.
Key takeaways
- BASIX applies to every new home in NSW, to renovations costing $50,000 or more and to pools or spas over 40,000 litres, and the certificate is a mandatory DA and CDC document.
- Clause 2.1 of the Sustainable Buildings SEPP 2022 applies the BASIX standards in its Schedules, and Clause 2.2 makes any competing energy, water or thermal provision in an LEP or DCP of no effect.
- Schedule 2 Part 2 of the SEPP sets thermal performance as a maximum heating and cooling load in megajoules per square metre of conditioned floor area for each climate zone, assessed with NatHERS accredited software, at a level the Department equates to 7 stars.
- NCC 2022 Volume Two Part H6 sets the national performance requirements H6P1 and H6P2, met by the energy rating method under Specification 42 or the elemental method in Housing Provisions Parts 13.2 to 13.7, and NSW channels residential compliance through BASIX.
- Owner builders need an owner-builder permit from Service NSW for work over $10,000, must complete the approved course where the work is $20,000 or more, and need the BASIX certificate before the DA is lodged.
Who this is for: owner builders preparing a new house DA anywhere in NSW who want to understand the BASIX, NatHERS and NCC 2022 requirements well enough to brief the designer and assessor, and to know what the council and certifier will look for on the plans.
What is BASIX and when does it apply?
BASIX, the Building Sustainability Index, is the NSW scheme that sets water, energy and thermal performance targets for residential development. The NSW Planning Portal states that a BASIX certificate is required for a new home, for renovations of $50,000 or more and for a pool or spa of more than 40,000 litres, and that the standards increased on 1 October 2023. The certificate records the commitments the house will meet: the water target (fixtures, rainwater tank, landscaping), the energy target (hot water system, heating and cooling, lighting, cooking, pool pumps, solar) and the thermal performance of the building fabric. It is produced through the BASIX tool on the Portal by the designer or an accredited assessor, and for most new houses the thermal part is done by a NatHERS accredited assessor using rating software.
The legal basis is State Environmental Planning Policy (Sustainable Buildings) 2022, which commenced on 1 October 2023 and replaced the former BASIX SEPP. Clause 2.1 applies the standards in Schedule 1 and Schedule 2 to BASIX development as defined in the EP&A Regulation 2021, and Clause 2.2 provides that a competing provision of an LEP or DCP aiming to reduce water use or greenhouse emissions, or to improve thermal performance, is of no effect. That means a council cannot impose its own higher thermal standard through the DCP; BASIX is the single measure. Clause 2.1(5) also requires the consent authority to be satisfied that the embodied emissions of the development have been quantified using the BASIX system, which is a reporting step rather than a target for houses.
What does the 7 star standard mean under NCC 2022 and BASIX?
Nationally, NCC 2022 raised the minimum thermal performance of new houses to the equivalent of 7 stars under the Nationwide House Energy Rating Scheme (NatHERS), and added a whole-of-home energy budget for the appliances. In Volume Two, Part H6 has two performance requirements: H6P1 limits the heating, cooling and total thermal energy loads to the values in Specification 44, and H6P2 limits the energy value of the domestic services to 70 per cent of a reference baseline of standard appliances. H6D2 gives two deemed-to-satisfy routes: the energy rating method using house energy rating software under Specification 42, which is the NatHERS route, or the elemental method in Parts 13.2 to 13.7 of the ABCB Housing Provisions for houses of 500 square metres or less, with whole-of-home requirements in Parts 13.6 and 13.7. NSW has its own variations in Volume Two, including deleting the H6V2 verification method.
In NSW the thermal target is expressed through BASIX rather than as a star rating. Schedule 2 Part 2 of the Sustainable Buildings SEPP states that the thermal performance standard is the maximum amount of energy that may be used to heat and cool a dwelling to a comfortable temperature, measured in megajoules per square metre of conditioned floor area over a year, set separately for each climate zone, with conditioned floor area determined in accordance with NatHERS. The Department describes the 1 October 2023 standards as equivalent to 7 star NatHERS. The NatHERS assessor models the house in accredited software, the software produces the heating and cooling loads, and those loads are entered into BASIX, which passes or fails the thermal section against the Schedule 2 caps. A house that rates 6.5 stars will not pass BASIX thermal in most Sydney climate zones and will have to be redesigned.
What must be on the DA plans?
The Regulation requires the BASIX certificate to accompany the DA for BASIX development, and the certificate itself lists commitments that must be shown on the plans and specifications. In practice the council and later the certifier expect:
- The BASIX certificate number and date on the cover sheet of the architectural set, with the same plan set referenced in the certificate.
- A window and glazing schedule matching the certificate: each window’s size, frame type, glazing type and U-value and solar heat gain coefficient as modelled, with shading devices drawn.
- Insulation values for roof, ceiling, external walls and floors as committed, shown on sections or in the specification notes.
- Roof and external wall colours where the thermal assessment relied on light colours.
- The hot water system type, heating and cooling systems and their star ratings, lighting, ceiling fans and any solar photovoltaic system.
- The rainwater tank size and location with the connections committed (toilets, laundry, garden), and the water efficient fixture ratings.
- The NatHERS certificate and stamped drawings from the assessor, showing the modelled floor plan and elevations agree with the DA plans.
The common mistake is lodging the DA with a preliminary BASIX certificate generated from an early sketch, then changing windows, orientation or floor area during documentation. Any change to the modelled inputs requires an amended certificate, and Clause 2.1(2A) of the SEPP fixes which standards apply when a certificate is amended after lodgement. Council conditions of consent will require the commitments to be implemented, and the certifier must verify them before issuing the construction certificate and the occupation certificate.
BASIX, NatHERS and the NCC compared
| Item | BASIX (Sustainable Buildings SEPP 2022) | NatHERS | NCC 2022 Volume Two Part H6 |
|---|---|---|---|
| What it is | NSW planning standard for water, energy and thermal performance | National rating scheme and accredited software for thermal performance and whole of home | National building code performance requirements for energy efficiency in Class 1 buildings |
| Legal trigger | Clause 2.1, Sustainable Buildings SEPP; EP&A Regulation 2021 definition of BASIX development | Referenced by BASIX for thermal loads and by NCC Specification 42 | Adopted through the EP&A Regulation as the Building Code of Australia for construction certificates |
| Thermal target | Maximum heating and cooling loads in MJ per sqm by climate zone, Schedule 2 Part 2 | Star rating from 0 to 10; 7 stars is the NCC 2022 minimum | H6P1 and Specification 44 loads; energy rating method under Specification 42 |
| Appliances and services | Energy target scored in the BASIX tool | Whole of Home rating in newer software | H6P2, 70 per cent of reference baseline; Housing Provisions Parts 13.6 and 13.7 |
| Who prepares it | Designer or assessor through the Planning Portal | NatHERS accredited assessor | Certifier checks compliance at CC |
| When it is checked | DA or CDC lodgement, then CC and OC | Assessment before BASIX is finalised | Construction certificate and inspections |
Where does the owner-builder permit fit?
An owner-builder permit is separate from the DA and is issued by Building Commission NSW through Service NSW. Service NSW states that a permit is needed where the reasonable market cost of the work, labour and materials, exceeds $10,000, that the applicant must complete the approved owner-builder education requirements where the work is $20,000 or more, must hold a general construction induction (white card), must be over 18, must own the land or hold a registered lease of at least three years, and must intend to live in the property after the work is complete. The work must be for a single dwelling, dual occupancy or secondary dwelling that has development consent or a complying development certificate. The permit is therefore applied for after consent and before the construction certificate, and the permit number is needed to appoint the principal certifier and start work under Section 6.6 of the EP&A Act.
For energy efficiency the owner builder carries the same obligations as a licensed builder: the BASIX commitments must be built as certified, the insulation and glazing must match the schedule, and the certifier will ask for evidence at inspection and before the occupation certificate. Keep the glazing invoices, insulation labels and appliance compliance plates.
The sequence for an owner builder
- Site analysis first: orientation, slope, shading from neighbours and the climate zone, because NatHERS results depend on them more than on any product.
- Concept design with living areas to the north, limited west glazing, eaves sized to the sun angles and a compact form; ask the designer for a preliminary NatHERS run before the plan is fixed.
- Commission the NatHERS assessment and the BASIX certificate on the final DA drawings, and put the commitments on the plans.
- Lodge the DA on the NSW Planning Portal with the BASIX certificate, or the CDC if the house meets the Housing Code.
- After consent, apply for the owner-builder permit through Service NSW, complete the course where required, then obtain the construction certificate from the certifier, who verifies the BASIX commitments.
- Build to the certificate, keep the product evidence, and have the certifier confirm the commitments before the occupation certificate.
Definitions
- BASIX certificate
- The certificate generated through the NSW Planning Portal recording a dwelling’s water, energy and thermal performance commitments, required with a DA or CDC for BASIX development under the Sustainable Buildings SEPP 2022.
- NatHERS
- The Nationwide House Energy Rating Scheme, which rates the thermal performance of a dwelling’s design from 0 to 10 stars using accredited software and assessors, and now also produces a Whole of Home rating for appliances.
- Conditioned floor area
- The floor area of the rooms that are heated or cooled, determined in accordance with NatHERS, against which the Sustainable Buildings SEPP expresses the thermal performance cap in megajoules per square metre per year.
- Whole-of-home
- The NCC 2022 requirement (H6P2 and Housing Provisions Part 13.6) that the energy use of a house’s hot water, heating, cooling, lighting, pool and spa equipment stays within a budget relative to a reference home, allowing solar generation to offset use.
- Sustainable Buildings SEPP
- State Environmental Planning Policy (Sustainable Buildings) 2022, commenced 1 October 2023, which applies the BASIX standards to residential development in Chapter 2 and sets sustainability standards for non-residential development in Chapter 3.
- Owner-builder permit
- A permit issued by Building Commission NSW through Service NSW allowing an owner to carry out or supervise residential building work over $10,000 on their own home without a licensed builder, subject to eligibility and education requirements.
Frequently asked questions
Do I need a 7 star NatHERS rating for a new house in NSW?
You need to pass BASIX, whose thermal performance standard has since 1 October 2023 been set at a level the Department describes as equivalent to 7 stars. The NatHERS assessment produces the heating and cooling loads that BASIX tests, so in practice a design that would rate about 7 stars is what passes.
Can the council ask for more than BASIX?
No. Clause 2.2 of the Sustainable Buildings SEPP 2022 makes any competing LEP or DCP provision on water, greenhouse emissions or thermal performance of no effect, although councils may encourage or offer incentives for going further.
When do I get the BASIX certificate, before or after the DA?
Before. The certificate must accompany the DA or CDC application, and the commitments must be shown on the plans. If the design changes later, an amended certificate is required and the certifier checks it again at construction certificate stage.
Do I need an owner-builder permit to lodge the DA?
No. The DA is a planning approval and can be lodged by the owner without a permit. The owner-builder permit is needed before building work starts, and Service NSW requires that the work already has development consent or a CDC when you apply.
Does NCC 2022 Part H6 still apply in NSW if I have a BASIX certificate?
BASIX is the operative thermal and energy standard for NSW houses, and the NSW variations to Volume Two direct BASIX affected buildings to it for those matters. Other NCC provisions, including construction detailing, sealing and services requirements in the Housing Provisions, are still checked by the certifier, so confirm the scope with your certifier.
URBA prepares statements of environmental effects for owner builders and coordinates the BASIX and NatHERS work through our sister company NatHERS Pro, so the certificate, the plans and the DA say the same thing. See our statement of environmental effects service and our Sydney town planner page, or request a fee proposal for your build.
Sources and references
- NSW Planning Portal, BASIX (when a certificate is required and the 1 October 2023 standards), accessed September 2026
- State Environmental Planning Policy (Sustainable Buildings) 2022, Chapter 2 Clauses 2.1 and 2.2 and Schedule 2 Part 2 Thermal performance, accessed September 2026
- NSW Department of Planning, Housing and Infrastructure, Sustainable Buildings SEPP, accessed September 2026
- NCC 2022 Volume Two, Part H6 Energy efficiency (H6P1, H6P2, H6D2), accessed September 2026
- ABCB Housing Provisions Standard 2022, Part 13 Energy efficiency, accessed September 2026
- Nationwide House Energy Rating Scheme (NatHERS), Home Energy Rating, accessed September 2026
- Service NSW, Apply for an owner-builder permit, accessed September 2026
- Environmental Planning and Assessment Act 1979, Section 6.6, accessed September 2026
Information disclaimer. This article is general planning information prepared by the URBA Planning Team and is current at the date of publication. It is not planning, legal or financial advice for any specific property. Planning instruments, development control plans, state policies and the National Construction Code are amended regularly and councils interpret them differently; the controls quoted here should be confirmed against the versions in force at the date of lodgement and against the consent authority’s current requirements. Reliance on this article is at the reader’s own risk. URBA, a division of Contrive Consultants Pty Ltd, accepts no liability for loss arising from its use. For advice on a specific site, contact URBA for a fee proposal.