What Builders Must Disclose Under New Energy Efficiency Laws
Australia’s construction industry is undergoing a major regulatory shift as governments push for higher energy efficiency standards in new buildings. These changes place significant disclosure obligations on builders, making compliance a critical issue under Building and Construction Law. Failure to meet these obligations can result in disputes, penalties, project delays, and reputational damage.
This article explains what builders must disclose under the new energy efficiency laws, why these disclosures matter, and how builders can protect themselves legally while meeting sustainability expectations.
Understanding the New Energy Efficiency Laws
Energy efficiency requirements in Australia are primarily driven by updates to the National Construction Code (NCC), alongside state and territory legislation. Recent amendments aim to reduce carbon emissions, lower household energy costs, and improve the long-term sustainability of residential and commercial buildings.
Under these reforms, builders are now required to deliver more transparent information about a building’s energy performance. From insulation and glazing to thermal performance and energy ratings, disclosure is no longer optional—it is a legal obligation under Building and Construction Law.
Key Disclosures Builders Must Make
Energy Efficiency RatingsBuilders must disclose the energy efficiency rating of a building, particularly for residential developments. This often includes the Nationwide House Energy Rating Scheme (NatHERS) score, which assesses thermal performance.These ratings must be accurate and based on approved assessments. Misrepresenting a rating may constitute misleading or deceptive conduct under Australian consumer law and construction legislation.
Materials and Construction MethodsBuilders are required to disclose details of materials and systems that impact energy efficiency, including:
Insulation types and R-values
Window glazing and shading solutions
Roofing and wall systems
Sealing and ventilation methods
Any variation from approved plans or specifications must also be disclosed. Under Building and Construction Law, undisclosed substitutions can lead to contract breaches and defects claims.
Compliance with NCC Energy StandardsBuilders must clearly disclose whether the project complies with the current NCC energy efficiency provisions applicable at the time of approval. This is particularly important for projects spanning regulatory transition periods.Failure to meet updated standards may result in occupancy certificate delays, enforcement action, or costly rectification work.
Energy Performance FeaturesWhere energy-efficient features are included—such as solar panels, battery storage, heat pumps, or water-saving systems—builders must disclose:
Overstating performance can expose builders to legal risk under Building and Construction Law and consumer protection legislation.
Limitations and AssumptionsBuilders must also disclose any assumptions underlying energy assessments, such as:
Standard occupancy patterns
Climate zone assumptions
Typical appliance usage
This protects builders from liability where actual performance varies due to occupant behaviour rather than construction defects.
Why These Disclosures Matter
Energy efficiency disclosures play a crucial role in:
Protecting consumers from misleading claims
Supporting informed purchasing decisions
Reducing post-completion disputes
Ensuring regulatory compliance
From a legal perspective, transparency is one of the most effective risk management tools available to builders. Clear disclosures reduce ambiguity, which is often the root cause of construction disputes.
Legal Consequences of Non-Disclosure
Under Australian Building and Construction Law, failure to disclose required energy efficiency information can lead to:
Regulatory fines and penalties
Contract termination
Defects and rectification claims
Disciplinary action against licences
Reputational harm
In serious cases, non-compliance may also trigger investigations by building regulators or consumer protection agencies.
Best Practice for Builders
To stay compliant and competitive, builders should:
Keep up to date with NCC amendments
Use qualified energy assessors
Ensure contracts and marketing materials align with actual performance
Maintain detailed records of disclosures
Seek legal advice when regulations change
Proactive compliance not only reduces legal risk but also strengthens trust with clients in an increasingly sustainability-conscious market.
The Role of Building and Construction Law
Building and Construction Law provides the framework that governs these disclosure obligations. It intersects with planning law, consumer law, and environmental regulation, making compliance a multidisciplinary challenge.
Builders who understand their legal responsibilities are better positioned to adapt to regulatory change, avoid disputes, and deliver high-quality, compliant projects.
Australia’s new energy efficiency laws mark a clear shift towards greater accountability and transparency in the construction industry. Builders must disclose accurate, detailed information about energy performance, materials, and compliance to meet their legal obligations under Building and Construction Law.
By embracing these requirements and prioritising clear communication, builders can reduce risk, enhance sustainability outcomes, and future-proof their businesses.
If you’re a builder or developer navigating Australia’s evolving energy efficiency requirements, seek advice from an experienced Building and Construction Law professional.
