Cost estimates only: Any building, material or upgrade figures on this page are indicative, not fixed prices or quotes. Confirm current written costs, specifications and inclusions directly with your builder, supplier or relevant trade.
Overview
Air conditioning is one of the most commonly discussed inclusions in Australian new home contracts. In a country with extreme summer heat and cold winters, the right air conditioning setup can significantly affect your comfort and energy costs for decades.
This guide explains the two main residential air conditioning systems — split systems and ducted reverse cycle — so you can understand what your builder is offering and whether the standard inclusion meets your needs.
Note
Split System Air Conditioning
A split system consists of two units: an indoor wall-mounted unit and an outdoor compressor/condenser. They are connected by refrigerant piping and electrical wiring. Each unit cools or heats the room it's installed in — making them ideal for targeted, single-room climate control.
Most modern split systems are reverse cycle, meaning they can both heat and cool — making them suitable year-round. Capacity is measured in kilowatts (kW). A 2.5kW unit suits a small room; a 7–9kW unit is needed for large open-plan spaces.
Pros
- Lower upfront cost than ducted
- Easy to install during or after build
- High energy efficiency ratings available
- Only cool/heat rooms you're using
- Can be added room by room over time
Cons
- Wall-mounted units are visible — affect aesthetics
- Multiple units needed for whole-home coverage
- Multiple outdoor units can clutter the exterior
- Individual remote controls for each unit
- No centralised thermostat or smart zoning
Ducted Air Conditioning
Ducted air conditioning uses a single outdoor unit connected to a concealed indoor unit in the roof cavity. Cooled or heated air is distributed through a network of ducts to ceiling vents in each room. All rooms are controlled through a single wall panel or smart controller.
Most modern ducted systems offer zoning, which allows you to control which rooms receive air conditioning independently — reducing energy waste in unused rooms.
Pros
- Clean, hidden system — no visible wall units
- Whole-home climate control from one controller
- Zoning allows room-by-room control
- Better suited to larger homes
- Higher perceived value and resale appeal
Cons
- Significantly higher upfront cost ($6,000–$18,000+)
- More difficult and expensive to install after build
- Requires adequate roof space for indoor unit
- Whole system failure affects whole home
- Running costs can be higher without careful zone management
Side-by-Side Comparison
| Factor | Split System | Ducted |
|---|---|---|
| Upfront cost (whole home) | $1,500–$6,000 | $6,000–$18,000+ |
| Aesthetics | Wall-mounted units visible | Concealed — ceiling vents only |
| Installation timing | During or after build | Best during build (roof access needed) |
| Zoning | Manual (on/off per unit) | Smart zoning via controller |
| Running costs | Lower (only used rooms) | Variable — zone carefully |
| Suitable home size | Small–medium | Medium–large |
| Maintenance | Filter cleaning per unit | Annual duct and filter service |
Included or Upgrade?
Varies by Builder
Single Split System to Living Area
Many volume builders in QLD and VIC include a single 2.5–3.5kW split system to the main living area. Some builders include nothing. Check your contract.
Typically an Upgrade
Reverse Cycle Upgrade
Some builders include cooling-only split systems. Upgrading to reverse cycle (heating + cooling) typically costs $300–$800 per unit.
Typically an Upgrade
Ducted Air Conditioning System
Ducted is almost always an upgrade. Budget $6,000–$18,000 depending on home size and number of zones. It's significantly cheaper to include during the build.
Typically an Upgrade
Additional Split Systems (Bedrooms)
Where a split system is included as standard, it typically covers only the living area. Bedroom units are nearly always upgrades at $900–$2,000 per unit installed.
Common Builder Upgrades
Common Builder Upgrade
Ducted Air Conditioning Whole Home
Common Builder Upgrade
Additional Split Systems to Bedrooms
Common Builder Upgrade
Pre-Wire for Future Split Systems
Climate Considerations by Region
Australia's climate varies significantly, which affects your air conditioning priorities:
- SE Queensland (Brisbane, Gold Coast, Sunshine Coast): Hot summers, mild winters. Cooling is the priority. A good ducted or multi-head split system is a sound investment.
- Victoria (Melbourne, Geelong): Hot summers, cold winters. Reverse cycle (both heating and cooling) is essential. Ducted is highly valued by buyers in this market.
- NSW (Sydney, Hunter Valley): Moderate to hot summers. Cooling focus with some heating need. Reverse cycle split systems or ducted are both popular options.
Tip
Frequently Asked Questions
Frequently Asked Questions
Downloadable PDF Guide
Coming SoonA printer-friendly version of this guide will be available soon.
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