Design Memo
CCC-DM-2026-078

Water Efficiency Labelling (WELS) Requirements

What You Need to Know

Every tap, shower, toilet and urinal in your project needs a WELS star rating. The Water Efficiency Labelling and Standards Act 2005 makes this law. Products must be registered, labelled, and meet minimum star ratings before they can be sold or installed. Builders and developers count as "suppliers" under the Act, so these rules apply to you directly.

The Rules

  • All regulated products must be registered on the WELS database and carry a water rating label before supply or install (WELS Act 2005, s 33–34)
  • Taps need at least a 3-star WELS rating, which caps flow at 9 L/min (AS/NZS 6400:2016, Amdt 1:2022)
  • Showers need at least a 3-star rating with a maximum flow of 9 L/min. The highest rating for showers is 3 stars (AS/NZS 6400:2016, Amdt 1:2022)
  • Toilets need at least a 3-star rating and must be dual flush. A 3-star toilet allows up to 6.5 L full flush and 3.5 L half flush (AS/NZS 6400:2016, Amdt 1:2022)
  • Urinals are WELS-regulated products and must be registered. Waterless urinals are exempt from WELS registration (AS/NZS 6400:2016, Amdt 1:2022)
  • Plumbing fixtures must hold WaterMark certification before they can be registered under WELS (NCC 2025 Volume Three)
  • Products below the minimum star rating can no longer be sold. Sub-minimum registrations expired on 21 July 2023 (WELS Regulator Transition Advice, June 2022)

What This Means in Practice

For a 50-unit residential development in NSW, every kitchen tap, bathroom basin tap, shower head, and toilet suite needs a confirmed WELS star rating before you lodge your BASIX certificate. The rating you commit to must match the product you actually install. The certifier checks this at the final inspection.

A 3-star tap uses up to 9 L/min. A 5-star tap uses 4.5 to 6 L/min. The jump from 3-star to 5-star saves roughly 3 L/min per tap. Across 50 units with two bathroom taps and a kitchen tap each, that adds up to 450 L/min of potential flow reduction during peak use.

Developers targeting Green Star or NABERS Water ratings should specify higher-rated fixtures from the start. Green Star awards 2 points for best-available WELS ratings across all fixture types, and 1 point for fixtures within one star of the best available. A 5-star tap costs $20 to $50 more than a 3-star tap, but it earns more Green Star points and helps the building's NABERS Water score.


Key Design Decisions

1

Minimum Compliance vs Higher WELS Ratings

Specify 3-star fixtures to meet the legal minimum. Specify 4-star or above to target Green Star credits or NABERS Water improvement.

Trade-off: Higher-rated fixtures cost $20–$80 more per unit but reduce water bills and can earn sustainability rating points that add market value.
2

Fixture Schedule Timing

Lock in WELS star ratings during design, not during procurement. BASIX (NSW) and QDC 4.1 (QLD) require a committed star rating at the approval stage. Changing fixtures later means amending the approval.

Trade-off: Early commitment limits product choice but avoids re-approval delays and the risk of installing non-compliant products.
3

WaterMark and WELS Dual Compliance

Every plumbing fixture needs both WaterMark certification (safety) and WELS registration (water efficiency). Check both before you order. A product with WaterMark but no WELS registration is not legal to supply.

Trade-off: Dual checking adds 10 to 15 minutes per product to the specification process but prevents costly site rework and potential fines.
4

Display and Labelling Obligations

Developers must display WELS star ratings on inclusions lists, display boards near unit entrances, and in display homes. This applies to off-the-plan sales and completed units offered for sale.

Trade-off: Setting up compliant displays adds a small admin cost, but fines for non-compliance reach up to $99,000 per product per contravention for corporations.

Who Needs to Know What

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References

  1. Water Efficiency Labelling and Standards Act 2005 (Cth), Sections 33–34
  2. AS/NZS 6400:2016, Water efficient products — Rating and labelling (Amendment 1, June 2022)
  3. National Construction Code 2022, Volume Three — Plumbing Code of Australia
  4. BASIX (Building Sustainability Index), NSW Department of Planning
  5. Queensland Development Code 4.1 - Sustainable Buildings
  6. Green Building Council of Australia, Green Star Design & As Built, Water credits
  7. NABERS Water Rating methodology, nabers.gov.au

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