If a disclosure affected building or area is undergoing a refurbishment that will change the NABERS Energy for Offices rating by at least half a star, as assessed by a CBD Accredited Assessor (Assessor), you can apply for an exemption while the refurbishment is underway.
The Secretary (or a delegate) of the Department of Climate Change, Energy, the Environment and Water (the department) will consider the assessment by an Assessor which accompanies your application. If they are satisfied that a major refurbishment of the building is underway, an exemption may be granted.
Definition of a major refurbishment
A major refurbishment is set out at regulation 5B(1) of the Building Energy Efficiency Disclosure Regulations 2010 (the BEED Regulations). A major refurbishment is one that, according to an assessment by an Assessor, will alter the NABERS Energy for offices rating of the base building by at least half a star.
This assessment must be based on the NABERS Energy and Water for Offices Rules (the NABERS Rules).
Typically, an office building’s base building energy consumption is driven primarily by HVAC and lighting. Upgrading these systems are common examples of refurbishments that may change the base building rate by at least half a star.
An exemption on the basis of a ‘major refurbishment’ is in force for 12 months from the day the exemption is granted.
Specific requirements
In addition to the standard application requirements, an exemption application on the basis of a ‘major refurbishment’ must include:
- an assessment by an Assessor, showing that the refurbishment is a ‘major refurbishment’; and
- whether the Assessor has complied with subregulation 9(3A) by disclosing any conflict of interest in relation to the application.
Both requirements can be completed by an Assessor through the CBD Assessor Portal.
An exemption may only be granted if the Secretary (or Delegate) is satisfied that a ‘major refurbishment’ of a building (or area) is underway.
Therefore, an exemption application on this basis should include supporting documentation to assist the Secretary (or their Delegate) in being satisfied that the refurbishment of the building is:
- a ‘major refurbishment’ (r 5B(1) of the BEED Regulations); and
- is underway.
Where the Secretary (or their Delegate) is not satisfied that the building is undergoing a major refurbishment, they may request additional information to support the exemption application, which may delay processing.
Supporting documentation
Supporting documentation for major refurbishment exemption applications may include:
- A description of any new equipment or systems installed as part of the project. This can be documented in the CBD Assessor Portal, noting that the contents can be copied from a suitable existing document and does not have to be created specifically for this purpose. For example, this could include information about:
- central heating, ventilation and air-conditioning (HVAC) system functions or equipment, including controls upgrades;
- improved energy efficiency of new equipment;
- addition of variable speed drives (VSDs) or variable frequency drives (VFDs) on motors;
- vertical transportation system energy consumption;
- central hot water systems;
- Any addition of solar photovoltaic (PV) and battery systems.
- Information about any change of use for the building. For example, if the building is being refurbished to upgrade from educational tenants (unrateable) to being suitable for office tenants, this would constitute a change in the NABERS rating.
- Similarly, if a building was being converted from a warehouse (not office) to a facility suitable for lease as office space. See example around refurbishing a warehouse at Definition of an office.
- Comparisons between previously installed and proposed equipment efficiencies, if known.
- Signed contracts for significant components of the major refurbishment project. Note that the major refurbishment project can be deemed to have started if copies of signed contracts of major work elements are provided, even if site work is yet to commence.
- Works schedule, waterfall diagram or Gantt chart showing a summary of start and finish dates for key elements.
- Copies of tender, schedule and scope documents or relevant excerpts from contracts to support claims.
- HVAC contractor documents showing changes to main HVAC systems.
- Electrical or lighting contractor documents showing changes to base building lighting systems.
- Solar PV system design documentation including panel layout and estimated output.
- Photos of the area of the planned works, or of construction work if construction underway.
To be a ‘major refurbishment’, upgrades must be assessed by an accredited assessor to alter the base building rating of the building by at least half a star. Upgrades to tenant systems such as tenancy lighting or tenant installed supplementary air-conditioning will not normally reduce base building energy consumption or have an impact on the base building NABERS rating to satisfy this requirement.
If an exemption is being sought due to a star rating change of half a star or more, directly due to the need for tenants to vacate during refurbishment, CBD Administration may request the assessor provide the following to verify the expected rating change:
- evidence of low occupancy in the form of a spreadsheet, or other data identifying occupancy levels.
- evidence that the low occupancy is directly due to the refurbishment works.
- evidence of the NABERS Energy rating estimate, based on the NABERS Energy and Water for Office Rules.
Planning a refurbishment
Before a major refurbishment begins and throughout the planning stage, a building that is disclosure affected remains affected and isn’t eligible for a major refurbishment exemption, as the major refurbishment is not ‘underway’.
In some circumstances, an exemption may be granted for other reasons. For example, an exemption may be granted on the basis that the disclosure affected building or area is non-assessable where a building has been fully vacant for more than 12 months and a NABERS Energy for offices rating can’t be completed.
If you are not granted an exemption, your disclosure obligations will apply. You will need a current registered Building Energy Efficiency Certificate (BEEC) if you offer a disclosure affected building for sale, lease or sublease, and you will need to follow the advertising rules. This applies even when a planned future refurbishment is expected to change the NABERS rating.
A company has accepted a concept plan for a mechanical services upgrade in their office building. The tender documents are being drawn up, but no contracts have been signed for the work.
An Assessor engaged by the company estimates the building’s NABERS Energy for offices rating will increase from 2 stars to 4 stars when the works are complete.
The building is not eligible for a Major Refurbishment exemption because the work is not considered to be underway until the contract is signed.
The company needs a current registered Building Energy Efficiency Certificate (BEEC) or other exemption before it advertises or offers to sell, lease or sublease the building.
Refurbishment is underway
You can apply for an exemption to your CBD Program obligations when the major refurbishment is underway, that is, once the contract for construction or equipment supply have been executed. While a major refurbishment of a building is underway, a building or area that is disclosure affected is still identified as such, even if your exemption is granted.
A company has approved an upgrade to their office’s air-conditioning to achieve a 2-star improvement in the NABERS Energy for offices rating. Contracts have been signed and the first stage of construction work is due to start.
The project is now considered to be underway as contracts have been executed.
The company can seek an exemption from their CBD Program obligations on the basis that the major refurbishment is now underway.
Scheduling conflicts have led to a major upgrade of a company’s office air conditioning system being pushed back by 6 weeks.
The project is still considered to be underway as the contract has been executed.
The company can seek an extension to their exemption from their CBD Program obligations on the basis that the major refurbishment is still underway.
If during the assessment, the Assessor indicates that the rating of the building will not change by half a star or more, then the works are not considered to be a ‘major refurbishment’ in accordance with the Regulations. The disclosure affected building or area is not eligible for an exemption on this basis.
A company has signed contracts to upgrade the lifts and foyer in their disclosure affected office building. An Assessor has advised that this won’t change the building’s NABERS Energy for offices rating by half a star or more.
This means the works do not meet the definition of a major refurbishment for the purposes of the BEED Regulations.
Even though the work is underway, it is not possible to grant an exemption from the CBD Program obligations on this basis. If the disclosure affected building or area is offered for sale, lease or sublease it will require a current registered BEEC a different type of exemption.
A company is refurbishing a building that most recently received a 5 star certified NABERS Energy Rating. Solely due to the refurbishment, a substantial number of tenants vacated the building while works are underway. An assessor determines the base building rating will be altered to 2 stars if the building receives a certified NABERS rating at this time, due to tenants vacating the building.
Due to the expected star rating alteration, the refurbishment can be considered a ‘major refurbishment’. If the assessor can provide evidence of their assessment of the base building rating change, and the need for tenants to vacate due to the major refurbishment, the company can seek an exemption from their disclosure obligations under the BEED Act.
Refurbishment is complete
As part of the CBD Program’s compliance monitoring activities, you may be asked to provide information to substantiate that the major refurbishments were undertaken and are completed.
After a major refurbishment project is completed, a building or area is not disclosure affected for 2 years from the date the Certificate of Occupancy (or equivalent) is issued. This is automatic, you don’t need to apply.
If there are staged certificates for different areas of the building, the building is not disclosure affected until 2 years from the date that the final certificate is issued.
The conditions for issuing a Certificate of Occupancy vary between jurisdictions. In many locations, no Certificate of Occupancy will be issued if air conditioning plant items have been replaced but there have been no changes to fire services or the building classification.
A company applied for and received a 12-month exemption while its office building was undergoing major refurbishment.
The work was completed in 6 months but due to the nature of the work, a Certificate of Occupancy (or equivalent) wasn’t issued. This means that the building remains disclosure affected.
Once the exemption expires, if the disclosure affected building is offered or advertised for sale, lease or sublease, it will require a current registered BEEC or other exemption.
When do your disclosure obligations apply?
The stage of the refurbishment project determines when disclosure obligations apply, and whether you can apply for an exemption. In some cases, a refurbished building might be disclosure affected, but not eligible for a NABERS Energy for offices rating. This means that it can’t get a current registered BEEC.
Under the current NABERS Energy and Water for Offices Rules, a building subject to a major refurbishment, will become eligible for a NABERS Energy for offices rating as soon as 12 months of data can be collected. This is the NABERS Rating Period.
The 12-month NABERS Rating Period can only begin once one of the following requirements is met:
- 75% of the office Net Lettable Area is occupied by tenants, or
- it has been 2 years since the Certificate of Occupancy (or equivalent) was issued.
- if a Certificate of Occupancy was not required, it has been two years since the last Commercial Building Disclosure (CBD) exemption for a major refurbishment expired.
Where a refurbished building is not eligible for a NABERS Energy for offices rating, you can seek an exemption on the basis that the building or area is non-assessable. See non-assessable building exemptions for more information.
You will also need to allow time to prepare and process the NABERS Energy for offices rating. NABERS Assessors are allowed up to 4 months after the NABERS Rating Period ends to submit their application.
An exemption may be granted to cover the data collection for the NABERS Rating Period and submission time. The longest exemption is 12 months, but multiple exemptions may be granted if it isn’t yet possible to work out the NABERS Energy for offices rating.
A company has just completed a major refurbishment and received a Certificate of Occupancy, meaning the building won’t be disclosure affected for 2 years.
The company has maintained an occupancy rate in their building above 75% throughout the project.
This means the building can begin its NABERS Rating Period immediately and will be eligible for a NABERS Energy for offices rating after 12 months of data is available from the completion of the refurbishment.
Knowing that after 2 years from the Certificate of Occupancy being issued, the building will become disclosure affected again, the company organises an Assessor to complete the NABERS Energy for offices rating and BEEC application before the 2 years is up.
By starting early, the company is able have the BEEC application approved as soon as the building becomes disclosure affected.
In this example, as the building is eligible to gather NABERS Energy for offices data at any time due to maintaining the 75% occupancy, the owner could voluntarily submit a BEEC application even earlier in the non-disclosure period.
A company’s major refurbishment takes a year to complete, with a 12-month exemption issued about halfway through the process.
Due to the nature of the works, a Certificate of Occupancy wasn’t issued. This means that the building remains disclosure affected.
However, as occupancy remains below 75%, the building is not immediately eligible for a NABERS Energy for offices rating. When the major refurbishment exemption expires, a new exemption is gained for the maximum duration of 12 months on the grounds that the building is non-assessable, because a NABERS rating is not possible.
Eight months after the major refurbishment was completed, the building achieves 75% occupancy and the NABERS Rating Period (12 months of data collection) begins.
The company obtains a third, shorter exemption just to cover the remaining NABERS Rating Period and the 4-month submission period.
A company obtains a 12-month exemption due to major refurbishment works.
When the works are complete, a Certificate of Occupancy is issued. The building automatically enters the 2-year non-disclosure period.
Eighteen months after the Certificate of Occupancy was issued, occupancy reaches 75%, which means the NABERS Rating Period (12 months of data collection) can begin.
The building becomes disclosure affected 6 months later, when the Certificate of Occupancy is 2 years old.
Although the building is now disclosure affected, it is still non-assessable, as the occupancy of 75% has only been achieved for 6 months.
The NABERS Energy rating can’t be obtained until an Assessor has collected 12 months of data based on occupancy of at least 75%. Once 12 months of data has been collected, the Assessor applies for a NABERS Energy for offices rating, which can take up to 4 months to process.
The building is therefore disclosure affected, but non-assessable, because only 6 months of data is available so far. The company obtains a 10-month exemption to cover the 6 months remaining in the Rating Period, and the 4 months for submission.
A company obtains a 12-month exemption due to major refurbishment works.
When the works are complete, a Certificate of Occupancy is issued. The building automatically enters the 2-year non-disclosure period.
Occupancy only reaches 60% during this period so the NABERS Rating Period cannot begin.
The building becomes disclosure affected when the Certificate of Occupancy is 2 years old. On the same day, the NABERS Rating period begins.
Although the building is now disclosure affected, it is still non-assessable, as an occupancy rate of 75% has not been achieved.
The NABERS Energy for offices rating can’t be obtained until an Assessor has collected 12 months of data and applied for a NABERS Energy for offices rating which can take up to 4 months.
During the data gathering period, the building owner obtains its second exemption; a 12-month exemption on the grounds that the building is not assessable.
The building owner will need to apply for and receive a further 4-month exemption to cover the NABERS lodgement period. The NABERS Energy for offices rating is certified and then at the end of this third exemption, the BEEC is issued.
A company has completed a refurbishment of an office building. Solely due to the refurbishment, all building tenants vacated while works were underway. As the office building was not advertised for sale or lease while refurbishment works were underway, the company did not need to seek an exemption from CBD Program obligations.
A certificate of occupancy is issued on 1 October 2024. However, the building owners are unable to re-lease many of the floors, and as of 1 October 2025, 16% of the building is occupied.
Before the refurbishment, the building held a 6-star NABERS rating. An assessor reviews the building information and determines that if the building receives a certified NABERS rating at this time, the star rating will reduce to 1 star, due to the low occupancy levels.
In this circumstance, the assessor should contact the CBD team for clarification. If the NABERS assessor can provide evidence of their assessment that the building rating will change by at least half a star, it may be considered that the completed refurbishment meets the statutory definition of a major refurbishment. This would mean the building will not be disclosure affected for 2 years from the date the certificate of occupancy is issued (1 October 2024).
Apply for a major refurbishment exemption
To apply for a major refurbishment exemption, you should engage a CBD Accredited Assessor (Assessor) who can complete the application on your behalf and include their supporting statement in accordance with the Regulations.
The application can be made by the Assessor in the CBD Assessor Portal.
There is a $512 (GST free) fee for this application.
Timeframes
The department considers applications on a case-by-case basis. We aim to process these applications within 21 calendar days of receipt.
If your application is incomplete this may cause delays. We will contact you as soon as practical if there are any issues with your application.
We will notify you of the decision by email. If granted, the exemption is valid for a period of 12 months from the date of issue.
If your application is refused, you can request a review of our decision under section 67 of the Building Energy Efficiency Disclosure Act 2010 (BEED Act). Contact us to apply for a review of our decision.
Read more
- Check whether an exemption may apply.
- We routinely audit exemption applications
- Read about the advertising rules.