It is some time since we last looked at Boarding Houses but a recent query from an architect in a regional area prompted to us to look again. The reason is because there still seems to be confusion in some Councils about whether BASIX or Section J applies. We have reported on this previously – read more here – but it seems to be time we looked again.
If you’re managing residential projects in NSW, sustainability compliance is a key part of the planning process. But how do you know when a BASIX certificate is required – and when is it not? It’s a question that continues to cause uncertainty through the industry, especially when boarding houses are involved.
Over the past few decades, boarding house developments have lived in the confusing overlap between BASIX and Section J of the building code.
Here’s the key update: as of 1 March 2022, large boarding houses in NSW are officially exempt from requiring a BASIX certificate. (This exemption applies to boarding houses, hostels or co-living housing that accommodate more than 12 residents, or have a gross floor area exceeding 300m2.)
This change creates some long overdue clarity and aligns compliance requirements with a building’s classification.
Let’s discuss the BASIX framework and certification process, what this means for boarding house developments and what architects, builders and certifiers need to know going forward.
Understanding the BASIX Framework
The Building Sustainability Index (BASIX) is a key part of NSW’s push toward more environmentally sustainable residential buildings. Introduced under the Environmental Planning and Assessment Act, its purpose and goal is to reduce water use and greenhouse gas emissions from energy use across the residential sector.
BASIX applies to Class 1, Class 2 and Class 4 buildings – typically standalone homes, townhouses and multi-unit residential developments.
For many years, though, some Class 3 buildings, including large boarding houses, were mistakenly brought under the BASIX framework due to overlapping requirements and inconsistent application by local councils.
The confusion around how boarding house BASIX requirements interact with the National Construction Code (most notably, Section J requirements for non-residential buildings) is what previously led to complications for Class 3 developments, including boarding houses.
At its core, BASIX assesses and sets performance targets across three critical areas: water efficiency, energy use and thermal comfort. By requiring these standards to be met before development approval, the framework ensures new homes contribute to NSW’s broader sustainability goals.
But for large boarding houses, Class 3 buildings, this is no longer required.
When is a BASIX Certificate Required?
A BASIX certificate is required for most new residential developments in New South Wales.
If you’re planning to construct or significantly renovate a home/residential unit (that meets the criteria of BASIX affected development) – you’ll need to include a BASIX certificate with your Development Application (DA) or Complying Development Certificate (CDC).
Specifically, a BASIX certificate is required for:
- new dwellings – classified as Class 1, Class 2 or Class 4 buildings, including standalone homes, townhouses and apartments
- alterations/additions to existing residential buildings – where the work is valued at $50,000 or above
- swimming pools or spas – with a capacity of 40,000 litres or more.
These rules support new homes and major upgrades to meet minimum performance standards for water efficiency, energy use and thermal comfort.
However, one common area of confusion has been boarding houses. While some were previously assessed under BASIX, this has now been clarified.
A BASIX certificate is not required for large boarding houses that accommodate more than 12 residents or have a gross floor area over 300m².
These are typically classified as Class 3 buildings under the Building Code of Australia. Instead, these buildings are subject to Section J (energy efficiency requirements and other relevant standards) under the National Construction Code. Boarding houses outside the threshold are typically classified as Class 1b buildings and therefore are subject to BASIX. However additionally, attention is brought to the case that BASIX does not replace all of the energy efficiency provisions of the Building Code of Australia Volume 2 in NSW. Please refer to the Building Code of Australia for further information, or alternatively contact Application Solutions.
What Changed in 2022?
For years, inconsistent interpretation by local councils meant developers of large boarding houses were often required to comply with both BASIX and Section J. This created unnecessary duplication, confusion and additional costs.
In March 2022, this long-standing point of confusion in the development industry was finally addressed through an important regulatory update. The Environmental Planning and Assessment Regulation 2021 replaced the previous 2000 version, introducing a new “BASIX building” definition, that formally excluded large boarding houses.
This update (which took effect from 1 March 2022) clarified that the BASIX framework does not apply to boarding houses, hostels or co-living housing that either:
- accommodate more than 12 residents, or
- have a gross floor area greater than 300m2.
This change was categorised in Schedule 7 of the 2021 Regulation, which redefines what a “BASIX building” is.
By removing certain Class 3 developments from the BASIX system, the regulation better aligns with the Building Code of Australia – which already requires Class 3 buildings to comply with energy efficiency provisions under Section J of the National Construction Code.
The 2022 update clearly defines responsibilities, surrounding Class 3 boarding house BASIX requirements, based on building classification.
As the NSW Department of Planning, Industry and Environment announced:
“It is no longer mandatory to obtain a BASIX certificate for the erection of a new large boarding house, or alterations to an existing large boarding house, as this development is no longer BASIX development. Specifically, the definition of a BASIX building in the Environmental Planning and Assessment Regulation 2021 excludes a boarding house, hostel or co-living housing that accommodates more than 12 residents, or has a gross floor area exceeding 300 square metres.”
The amendment realigns BASIX with its original intent (to apply to residential dwellings) and removes confusion for those working on larger communal living projects, like boarding houses.
If you’re interested in reviewing the regulation directly, refer to the Environmental Planning and Assessment Regulation 2021 under the Environmental Planning and Assessment Act 1979.
What This Means for Boarding House Developments
The recent regulatory changes have clear, practical implications for boarding house developments in New South Wales. If a boarding house is classified as a Class 3 building, accommodates more than 12 residents, or exceeds 300m² in gross floor area, it is exempt from needing a BASIX certificate.
Instead, Section J of the National Construction Code (NCC) applies, for compliance with energy efficiency standards for Class 3 buildings.
This change eliminates the previous confusion, complexity, duplication and additional costs (when both BASIX and Section J were being applied). Excluding large boarding houses from BASIX requirements: streamlines project timelines, simplifies approval processes, reduces costs and makes the development process more efficient.
For councils and certifiers, applying the BASIX exemption consistently, should now be clear-cut.
Still Unsure? Here’s What You Should Consider
While large boarding houses are now exempt, a BASIX Certificate may still be required if your project:
- accommodates 12 or fewer residents, or
- has a gross floor area under 300m².
These smaller developments might fall under the BASIX building definition, depending on their classification.
To avoid costly missteps, check your building classification (Class 1, 2, 3 or 4) – as this will determine which compliance pathway applies.
If you’re still uncertain, you may like to:
- consult the Environmental Planning and Assessment Regulation 2021
- consult the Building Code of Australia Code (BCA/NCC)
- speak with your certifier
- engage an experienced ESD consultant.
Getting expert advice early in your project can help ensure you’re meeting the right requirements, without unnecessary duplication or delay.
Final Thoughts on BASIX for Large Boarding Houses in NSW
For building projects going forward, the message is clear: large boarding houses in NSW (that accommodate more than 12 residents, or have a gross floor area over 300m2) don’t require a BASIX Certificate.
Having this long-overdue clarification aligns planning regulations with the Building Code of Australia, removing a previously common source of confusion and compliance burden, and reducing unnecessary costs.
If you still need help understanding whether your project needs a BASIX Certificate or a Section J report, we’re here to help.
Get in touch today for an obligation-free quote for your commercial energy efficiency report, or help navigating your project’s energy compliance obligations
