How NSW Varies NCC Section J: BASIX, Class 2 and Mixed-Use Buildings

Section J is national, but NSW applies it differently. The dwellings in a residential building are handled by BASIX, the rest of the building follows a NSW version of Part J1, and larger non-residential projects also face the Sustainable Buildings SEPP. On a mixed-use project, all three can apply to the same building.

This guide sets out how the pieces fit, based on the NSW variations published by the ABCB and NSW Planning guidance. It is general information: your certifier and your conditions of consent decide what applies to your project.

Which NCC edition applies in NSW?

NSW adopts NCC 2025 on 1 May 2027 (ABCB, NCC 2025 state and territory adoption information). Until then, NSW projects continue under NCC 2022 as varied for NSW. Confirm the edition that applies to your application with your certifier.

BASIX covers the dwellings, Section J covers the rest

In NSW, Class 2 buildings and Class 4 parts of buildings are subject to BASIX, the Building Sustainability Index. Class 3 buildings are not (NCC 2025 Volume One, NSW Part J1 notes). BASIX commitments become a condition of the development consent or complying development certificate.

That is why NSW switches off the national dwelling energy requirements. NSW J1P2 and NSW J1P3 state that they do not apply in NSW, because the thermal performance of a sole-occupancy unit of a Class 2 building or a Class 4 part of a building is regulated by BASIX. Under NCC 2022, NSW J1P1 likewise does not apply to a Class 2 building or a Class 4 part of a building.

Other classifications in the same building, such as a Class 6 retail podium, a Class 7a car park or a Class 5 office floor, are assessed under the NSW version of Part J1.

The BASIX certificate version sets the Section J edition for Class 2

For a Class 2 building or a Class 4 part of a building, the NSW notes in NCC 2025 link the Section J edition to the BASIX certificate required by the development consent or complying development certificate application:

• BASIX Single Dwelling or Multi Dwelling Certificate issued under Version 3.0 or earlier: NSW Section J of NCC 2019 Volume One Amendment 1 applies.
• Version 4.0 or later: Section J of NCC 2022 Amendment 2 Volume One applies.
• BASIX Alterations and Additions Certificate: NSW Section J of NCC 2019 Volume One Amendment 1 applies.

Check the BASIX certificate type and version early. It decides which edition of Section J the Class 2 building is checked against, even after NCC 2025 takes effect in NSW.

What NCC 2025 changes for non-residential buildings in NSW

NSW J1P1 in NCC 2025 adds near zero operational greenhouse gas emissions to the requirement and caps both energy and emissions. For the conditioned space, the hourly regulated energy consumption and associated greenhouse gas emissions, averaged over the annual hours of operation, must be not more than:

• Class 6 building: 40 kJ/m².hr and 4 g of CO2-e/m².hr
• Class 5, 7b, 8 or 9a building other than a ward area, or a Class 9b school: 22 kJ/m².hr and 2.2 g of CO2-e/m².hr
• All other building classifications: 8 kJ/m².hr and 1 g of CO2-e/m².hr

Under NCC 2022, the NSW J1P1 limits for the same groups were 80, 43 and 15 kJ/m².hr, with no emissions limit. The energy caps fall by about half.

NSW J1P4 also requires a building to have features that facilitate the future installation of on-site renewable energy generation, energy storage and electric vehicle charging equipment.

Performance Solutions: the NSW J1V3 reference building test

NSW keeps its own verification methods. Under NSW J1V3, a Class 3, 5, 6, 7, 8 or 9 building is verified when its annual greenhouse gas emissions are not more than 97% of those of a reference building, with the proposed building modelled with the proposed services. When modelled with the same services as the reference building, the emissions of its services must also be not more than those of the reference building's services. Thermal comfort or zone load criteria apply as well, and the building must comply with Specification 33. The calculation method must comply with ANSI/ASHRAE Standard 140, Specification 34 and Specification 48.

Read more about J1V3 modelling and Performance Solutions.

The Sustainable Buildings SEPP sits on top

The non-residential standards in Chapter 3 of the State Environmental Planning Policy (Sustainable Buildings) 2022 took effect on 1 October 2023. NSW Planning says they apply to new non-residential development with an estimated development cost of $5 million or more, and to alterations of existing buildings for non-residential use with an estimated development cost of $10 million or more. Land use zone exemptions are set out in the SEPP.

• Embodied emissions: upfront cradle-to-gate emissions across life-cycle stages A1 to A3 are quantified and uploaded to the NSW Planning Portal at both development application and construction certificate stage.
• Energy and water standards: apply to large commercial development, including offices over 1,000 m² of net lettable area, hotels and motels with 100 rooms or more, and serviced apartments with 100 apartments or more.
• All-electric: certain developments must be all electric or capable of converting to operate without fossil fuels by 2035.

For large commercial development, the construction certificate application must include an energy report in the form of a report under Section J of the Building Code of Australia (Environmental Planning and Assessment (Development Certification and Fire Safety) Regulation 2021, section 10B). Section 10B does not require this energy report on land covered by certain local environmental plans, except for prescribed serviced apartments, so check section 10B for your site.

A checklist for NSW projects

• List every building classification on the project, including podium retail, car parks and any Class 3 parts.
• For Class 2 buildings and Class 4 parts, record the BASIX certificate type and version, because it sets the Section J edition.
• For other classifications, confirm with your certifier whether NCC 2022 or NCC 2025 applies.
• Check the SEPP cost thresholds and whether the large commercial energy and water standards apply.
• Plan embodied emissions reporting for the development application and again for the construction certificate.

How Makao helps

We prepare Section J reports and J1V3 Performance Solutions for NSW projects, and upfront carbon reports for projects that need to measure embodied carbon. Timeframes are confirmed at quote, and fast-track is available for urgent projects.

For how we scope NSW Section J reports alongside BASIX and the Sustainable Buildings SEPP, see our NSW Section J, BASIX and SEPP guide. For the other states, see NCC 2025 by state.

Sources (checked 1 November 2026): ABCB, NCC 2025 Volume One, NSW Part J1 (Part notes, NSW J1P1 to J1P4 and NSW J1V3); ABCB, NCC 2022 Volume One, NSW J1P1; ABCB, NCC 2025 state and territory adoption information; NSW Planning, Sustainability standards for non-residential development (updated 19 June 2026); Environmental Planning and Assessment Amendment (Sustainable Buildings) Regulation 2022.