Thinking about adding a secondary dwelling or granny flat to your Queensland property? A recent change to Queensland’s energy-efficiency requirements could make a meaningful difference to the way smaller homes and raised homes are designed and assessed.
In August 2026, Queensland introduced changes to its residential energy-efficiency requirements, including a new pathway specifically relevant to eligible small homes.
For homeowners considering a compact or elevated secondary dwelling, it’s an important change to understand.
What has changed?
Since May 2024, Queensland’s residential energy-efficiency requirements have generally required new houses and townhouses to achieve a 7-star thermal performance rating.
The rating assesses the thermal performance of the building envelope – including elements such as the roof, walls, windows, floors and insulation – and is influenced by the dwelling’s design, orientation and location.
However, Queensland’s updated Queensland Development Code MP 4.1 – Sustainable Buildings, published on 14 August 2026, now provides additional Queensland-specific compliance pathways.
Importantly, this includes a:
5-star thermal performance pathway for eligible small homes of 50m² or less.
6-star thermal performance pathway for eligible homes with raised-floor construction, such as traditional Queenslander-style designs built on stumps, piers or posts.
Most houses and townhouses remain subject to the general 7-star requirement, while eligible raised-floor houses may also have access to a separate 6-star pathway.
Why is this important for secondary dwellings?
This change is particularly relevant to the secondary dwelling and small-home market.
Many secondary dwellings are intentionally compact. They’re designed to make better use of an existing property and can provide additional accommodation for family, independent living, guest accommodation or other permitted residential uses.
But smaller doesn’t necessarily mean easier when it comes to achieving an energy rating.
The orientation of the building, amount and location of glazing, insulation, roof and wall colours, shading, ventilation and other design decisions can all influence the thermal performance assessment.
For some smaller dwellings, meeting the previous 7-star target could therefore require additional design measures or specification changes.
Queensland’s new pathway provides eligible small homes of 50m² or less with another way of satisfying the thermal performance requirements.
Does this mean every secondary dwelling only needs 5 stars?
No – and this distinction is important.
The new provision shouldn’t be interpreted as a blanket reduction from 7 stars to 5 stars for every granny flat or secondary dwelling in Queensland.
The 5-star pathway applies to eligible small homes of 50m² or less, and the 6-star pathway applies to eligible raised-floor homes, that satisfy the relevant requirements under QDC MP 4.1.
The requirements applicable to an individual project still need to be assessed based on the proposed dwelling, property, location, construction method and relevant building requirements.
At DuaLiving, we recommend establishing these requirements early rather than making assumptions about what will apply to a particular property.
Could the change reduce the cost of building a secondary dwelling?
Potentially – but this will depend on the individual project.
Under a 7-star assessment, certain properties and designs may require additional measures to achieve the necessary rating.
Depending on the energy assessment, these can potentially include changes such as higher-performance glazing, insulation specifications, shading, colours or hot-water and other energy-related selections.
For example, DuaLiving’s energy assessments have historically needed to consider whether upgraded glazing or different hot-water systems are required to achieve the applicable rating.
The introduction of the small-home and raised-floor pathways may give designers and energy assessors greater flexibility when working with eligible dwellings.
However, we don’t believe homeowners should assume that this automatically translates into a fixed dollar saving.
Every property and dwelling should still be assessed individually.
Good design still matters
A lower minimum thermal rating pathway doesn’t mean energy-efficient design should be ignored.
Orientation, window placement, natural ventilation, insulation, shading and material selections can have a substantial impact on how comfortable a home is throughout the year.
Queensland’s climate also makes external colour selections particularly relevant.
Lighter roof and external wall colours can help reduce heat absorption, while thoughtful window positioning and shading can reduce unwanted heat gain.
At DuaLiving, our aim is not simply to achieve the minimum compliance requirement. We look at how the dwelling, its intended location and its specifications work together to create a practical and comfortable home.
What does this mean if you’re considering a DuaLiving secondary dwelling?
The August 2026 changes are positive news for Queensland homeowners considering smaller or raised-floor secondary dwellings.
But the first question shouldn’t simply be:
“Can I build a 5-star granny flat?”
A better starting point is:
“What can I realistically build on my property, and which requirements will apply?”
That’s where our process begins.
During DuaLiving’s Stage 0 – Site Feasibility Assessment, we investigate the property and proposed building location before progressing into detailed design and approvals.
This includes reviewing relevant property and planning information, identifying potential compliance considerations, plotting a selected DuaLiving standard-range design onto the property and developing an initial picture of project feasibility and likely build costs.
From there, we can help establish the appropriate pathway towards preliminary design and building approval.
Considering a secondary dwelling?
If you’ve been thinking about adding a secondary dwelling to your Queensland property, the recent changes make now a good time to investigate what’s possible.
Rather than guessing from your lot size or relying on general information online, start by understanding the opportunities and constraints of your individual property.
Talk to DuaLiving about a Site Feasibility Assessment and take the first step towards understanding what you could build in your backyard.
This article provides general information only. Energy-efficiency, planning and building requirements vary between projects. Eligibility for particular compliance pathways should be confirmed by the relevant building and energy-efficiency professionals for your individual project.
