Residential water efficiency: WELS, AS NZS 6400, rainwater and greywater
How water efficiency works on a new residential build in Australia: WELS labelling, the AS NZS 6400 product standard, NCC Volume Three plumbing minimums plus rainwater and greywater rules.
What it is
Residential water efficiency in Australia is shaped by three things that work together. The Water Efficiency Labelling and Standards scheme, known as WELS, puts a star rating on the tap, shower, toilet, washing machine and dishwasher that a homeowner buys. The Australian and New Zealand standard AS NZS 6400 sets the test methods that produce that rating. The National Construction Code Volume Three, the Plumbing Code of Australia, sets the minimum star levels that must be installed in a new home.
On top of that, state and council rules drive rainwater tanks, greywater reuse and on site water reduction targets. NSW runs BASIX. Victoria and Queensland have their own pathways. SA mandates a rainwater tank plumbed to a fixture on most new houses. The builder sits at the intersection.
TradeLens reads plumbing specifications, BASIX certificates and council conditions to flag fixtures that fall below the mandated minimum star rating, missing rainwater tanks where the consent requires one and greywater systems that lack approval.
WELS and AS NZS 6400
WELS is a federal scheme run under the Water Efficiency Labelling and Standards Act 2005 and the Water Rating regulator. It requires water using products in scope to display a star rating from 0 to 6 and a litres per use or litres per minute figure. Products in scope include taps, showers, toilet suites, urinals, washing machines, dishwashers and flow controllers.
The test methods that produce those ratings sit in AS NZS 6400, currently the 2016 edition. The standard sets how a shower is tested at a fixed pressure, how a toilet is measured across full and half flush and how a tap is rated against flow rate at a given inlet pressure. A product cannot be listed as WELS rated unless it has been tested to AS NZS 6400 by an accredited laboratory.
Plumbing fittings that carry water in a building must also hold WaterMark approval under the Plumbing Code, which is a separate health and safety scheme run by the Australian Building Codes Board. WaterMark is mandatory for the product to be installed. WELS rating is mandatory for the product to be sold and labelled.
NCC Volume Three minimums
The Plumbing Code of Australia sets minimum WELS star ratings for fixtures installed in a new Class 1 home. Current floors are 3 star toilets, 3 star showers and 4 star kitchen and bathroom tap equipment. State variations apply, and several states have lifted the minimums through BASIX or building code variations.
The minimums apply to new installations and to like for like replacements in existing homes. A builder cannot put a 2 star shower head into a new bathroom under the NCC even if the product carries WaterMark approval.
BASIX, rainwater and greywater
BASIX is the NSW Building Sustainability Index. Since the October 2023 uplift, BASIX water targets for new Class 1 dwellings sit at around 40 per cent reduction below the pre BASIX benchmark for most climate zones. The target is met through fixture star ratings, rainwater tanks plumbed to toilets and laundry, hot water systems chosen for efficiency and pool covers where relevant.
South Australia requires most new houses on a building licence to install a rainwater tank with a minimum capacity plumbed to at least one fixture such as a toilet, hot water service or laundry cold tap. The requirement sits under the Plumbing Code and SA Water rules.
Greywater systems that divert water from showers, basins and the laundry into garden irrigation or toilet flushing must be approved before installation. Each state runs an approval list. NSW Health and the Victorian Building Authority both publish the approved products and the conditions for installation.
What the builder actually delivers
On a residential build the water efficiency outcome lives in three documents and one inspection.
The first document is the specification or fixture schedule. It needs to name the product, the WELS star rating and the WaterMark listing for every tap, shower, toilet, dishwasher and washing machine in scope.
The second is the BASIX or equivalent state certificate. It sets the targets the build must meet, and the as built must match the certificate at occupation.
The third is the council consent. It carries any rainwater tank, greywater or stormwater conditions on top of the state scheme.
The inspection is the final plumbing inspection where the plumber and the surveyor confirm that the installed fixtures match the schedule.
How TradeLens uses this
TradeLens flags fixture schedules that drop below the NCC star floors, BASIX commitments that the chosen fixtures cannot meet, rainwater tanks absent from a build where SA or council rules require one and greywater systems specified without an approval reference number. It also surfaces the gap between the BASIX target and the as built schedule before the plumbing inspection.
Citations
- [1]
WELS scheme: standards and labelling
standardWater Rating regulator · accessed 28/05/2026
Federal WELS scheme requiring AS NZS 6400 testing and registration before products can be sold or labelled in Australia.
- [2]
NCC 2025 Volume Three Plumbing Code of Australia
standardAustralian Building Codes Board · accessed 28/05/2026
Plumbing Code of Australia setting WaterMark and minimum WELS star ratings for fixtures in new Class 1 dwellings.
- [3]
BASIX building sustainability index
governmentNSW Department of Planning · NSW · accessed 28/05/2026
NSW BASIX targets for water, energy and thermal performance applied to new residential developments.
- [4]
SA rainwater tank plumbing requirement
legislationSA Government · SA · accessed 28/05/2026
South Australian rules requiring a rainwater tank plumbed to a fixture in most new dwellings on a building licence.
- [5]
Victorian Building Authority: WELS scheme
governmentVictorian Building Authority · VIC · accessed 28/05/2026
Victorian guidance on WELS obligations for builders, suppliers and display home operators.
How this was researched
This entry was drafted from primary Australian sources (legislation, regulator publications and industry guidance) and reviewed and signed off by Oli Rossi, Subject-matter expert, TradeForm Knowledge. Citations link to the source documents you can verify yourself. The entry is re-verified on a cadence and automatically flagged for review when a watched source changes.
Disclaimer
This is general information about Australian construction and business topics. It is not legal, engineering, or financial advice. Laws and standards change. Verify current requirements with a licensed professional in your jurisdiction before relying on this content.