Split system air conditioners are the most popular cooling and heating solution in Australian homes, with over 70 percent of households relying on one as their primary climate control. The average split system AC installation cost in Australia sits between $1,800 and $4,800 for a standard unit including supply and labour, but your final bill depends on unit capacity, brand, installation complexity, and location. This guide breaks down every cost component so you can compare quotes confidently before hiring a licensed air conditioning technician.
How Much Does Split System AC Installation Cost? The Short Answer
The total split system AC installation cost in Australia ranges from roughly $1,200 for a small budget unit in a simple back-to-back install through to $5,500 or more for a large premium unit with extended pipe runs and electrical work.
| Budget Tier | Total Cost Range | What You Get |
|---|---|---|
| Budget | $1,200–$2,500 | Entry-level brand (Kelvinator, Samsung), 2.5–3.5kW capacity, back-to-back installation, existing electrical circuit. Suits bedrooms and small rooms. |
| Mid-range | $2,500–$4,000 | Quality brand (Fujitsu, Daikin Cora), 5.0–7.1kW capacity, standard installation with short pipe run, wall bracket for outdoor unit. Suits living rooms and open-plan areas. |
| Premium | $4,000–$5,500+ | Top-tier brand (Daikin US7, Mitsubishi Electric MSZ-AP), 7.1–8.5kW+ capacity, extended pipe run, new dedicated electrical circuit, switchboard work. Suits large living areas and demanding climates. |
These ranges include the cost of the unit and a standard installation by a licensed technician holding an ARCtick refrigerant handling licence. The indoor unit is known as a split system because the refrigeration cycle is split between indoor and outdoor components. Prices vary by location, with Sydney and Melbourne typically running 10 to 20 percent higher than the national average.
Cost by Unit Size and Room
Choosing the right unit size is the most important decision. An undersized unit works harder and fails to reach the set temperature. An oversized unit short-cycles and wastes energy. Here is how split system AC installation cost breaks down by capacity.
| Capacity | Suits Room Size | Unit Cost | Installed Cost | Annual Running Cost |
|---|---|---|---|---|
| 2.5kW | 10–20m² (bedroom, study) | $600–$1,200 | $1,200–$2,500 | $200–$350 |
| 3.5kW | 20–30m² (master bedroom, small living) | $900–$1,600 | $1,700–$3,000 | $300–$480 |
| 5.0kW | 30–45m² (medium living room) | $1,200–$2,200 | $2,100–$3,700 | $400–$650 |
| 7.1kW | 45–60m² (large open-plan) | $1,500–$3,000 | $2,700–$4,800 | $550–$850 |
| 8.5kW+ | 60m²+ (very large space) | $1,800–$3,500+ | $3,200–$5,500+ | $650–$1,000 |
Annual running costs assume a 28 to 34c/kWh electricity tariff and typical seasonal use (4 hours per day during summer and winter combined). Your actual costs depend on climate zone, tariff, insulation, and usage frequency. Queensland and Northern Territory households pay more annually due to longer cooling seasons.
Single Split vs Multi-Split vs Ducted
If you need climate control in more than one room, understanding the cost difference between these three options helps you choose the right approach.
| System Type | Typical Installed Cost | Best For |
|---|---|---|
| Single split (1 indoor unit, 1 outdoor unit) | $1,200–$5,500 per unit | One or two rooms. Independent control. Cheapest per room if cooling 1–2 spaces. |
| Multi-split (2–6 indoor heads, 1 outdoor unit) | $4,200–$10,000+ | Two to four rooms where outdoor space is limited. One outdoor unit serves multiple heads. Each head costs $1,000–$1,500 extra. |
| Ducted (central unit, ceiling ducts to every room) | $8,000–$25,000+ | Whole-home comfort with 4+ rooms. Invisible from inside. Highest upfront cost but cleanest aesthetic. |
For one or two rooms, individual single splits are the most cost-effective choice. Multi-split systems save outdoor space but cost more per head. Ducted systems make financial sense only for whole-home comfort with four or more zones. Without zoning, a ducted system uses three to four times more electricity than a split system. Find a licensed air conditioning technician to assess which system suits your home.
Factors That Affect Split System AC Installation Cost
Every installation is different. These eight factors have the biggest impact on your final bill.
1. Unit Capacity (kW)
A 2.5kW bedroom unit costs roughly half as much as a 7.1kW living room unit, both to buy and to install. The correct capacity depends on room size, ceiling height, insulation, window area, and orientation. Ask your installer to perform a heat load calculation rather than guessing the size. An oversized unit short-cycles and increases wear on the compressor.
2. Brand and Efficiency Rating
Budget brands (Kelvinator, Samsung) cost 30 to 50 percent less than premium brands (Daikin US7, Mitsubishi Electric Hyper Heat). Premium units offer higher energy star ratings (6 to 7+ stars vs 2 to 3 stars), quieter operation (19dB vs 35dB+), longer warranties (up to 10 years vs 5 years), and better heating performance in cold climates.
3. Energy Star Rating
Australia uses a 1 to 10 star scale for air conditioner energy efficiency, with separate blue (cooling) and red (heating) labels. A higher-rated unit costs more upfront but delivers significant running cost savings over its 10 to 15 year lifespan.
| Star Rating | Approximate Annual Running Cost (5kW) | Annual Saving vs 2-Star |
|---|---|---|
| 2 star | ~$650 | - |
| 3 star | ~$550 | ~$100/yr |
| 5 star | ~$400 | ~$250/yr |
| 7 star | ~$320 | ~$330/yr |
A 5-star unit typically pays back its premium over a 2-star unit within 3 to 5 years through lower electricity bills. In South Australia, where electricity prices are the highest in Australia, the payback is even faster.
4. Installation Complexity
A back-to-back installation (outdoor unit mounted directly behind the indoor unit through the same wall) is the cheapest scenario. Every additional metre of copper pipe, insulation, and trunking adds roughly $80 per metre. Second-storey installations, long pipe runs across the roof space, or difficult outdoor unit access (rooftop, narrow side passages) all increase labour time and cost.
5. Electrical Requirements
Most split systems above 3.5kW require a dedicated electrical circuit from the switchboard. If your switchboard has a spare slot and the cable run is short, this adds $300 to $800 to your bill. If your switchboard is full or uses old ceramic fuses, a switchboard upgrade ($1,000 to $3,000) may be required before installation. A licensed electrician handles all electrical work.
6. Mounting Position
Wall brackets for the outdoor unit cost $90 to $200 each. Roof brackets cost $250 to $350. Ground-level placement on a concrete slab is cheapest. Second-storey bracket installation adds $200 or more for scaffolding or elevated work. If the indoor unit cannot drain condensate by gravity, a condensate pump ($150 to $400) is required.
7. Your Location
Labour rates, market competition, and climate all affect pricing. Sydney and Melbourne installations cost 10 to 20 percent more than the national average. Darwin commands a premium due to limited competition and tropical-rated equipment requirements. Regional areas add 15 to 25 percent over metro pricing for travel and logistics.
8. Existing Unit Removal
If you are replacing an old split system, the installer must decommission the existing unit, recover the refrigerant (a legal requirement under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989), and dispose of the old equipment. This typically costs $100 to $500 depending on accessibility.
Regional Cost Comparison
Split system AC installation cost varies across Australia. Here is how the major capital cities compare for a standard 5kW mid-range unit (supply and install).
| City | Typical Installed Cost | Compared to National Average |
|---|---|---|
| Sydney | $2,800–$4,800 | 15–20% higher |
| Melbourne | $2,500–$4,500 | 10–15% higher |
| Brisbane | $2,100–$3,700 | Close to average |
| Perth | $2,200–$3,800 | Close to average |
| Adelaide | $2,200–$3,700 | Close to average |
| Hobart | $2,400–$4,000 | 5–10% higher |
| Canberra | $2,300–$4,000 | 5–10% higher |
| Darwin | $2,800–$5,000 | 15–20% higher |
Sydney’s premium reflects higher labour rates and strata requirements. Darwin’s elevated costs are driven by limited competition and freight on equipment. Canberra and Hobart sit above average because cold-climate installations often require higher-capacity units with strong heating performance. Regional areas typically add 15 to 25 percent to capital city pricing.
Popular Brands and Price Tiers
Brand choice directly affects your upfront cost, running costs, and warranty coverage. Here is how the major brands compare for a standard 5kW unit.
| Brand | Tier | 5kW Unit Cost | 5kW Installed | Warranty | Notes |
|---|---|---|---|---|---|
| Kelvinator | Budget | $1,100–$1,400 | $1,800–$2,600 | 5 years | Electrolux-owned, widely available. Good entry-level option for mild climates. |
| Samsung | Budget-Mid | $1,200–$1,600 | $2,000–$2,900 | 5 years | WindFree technology on upper models. AI Auto mode. |
| Fujitsu | Mid | $1,400–$1,900 | $2,200–$3,200 | 5 years | 6-star efficiency, 19dB noise, strong installer network. Best value in the mid-range. |
| Daikin | Mid-Premium | $1,500–$2,100 | $2,500–$3,700 | 5–10 years | Market leader. Cora (mid), Alira X (premium), US7 (top, 7-star). Manufactures own compressors. |
| Mitsubishi Electric | Premium | $1,900–$2,500 | $2,700–$3,900 | 5 years | Hyper Heat models for cold climates (-15°C outdoor operation). MSZ-AP series most popular. |
Budget brands suit rental properties and mild climates. Premium brands are worth the investment for primary living areas, cold climates (Canberra, Hobart, alpine regions), and households wanting the lowest running costs.
How to Get Accurate Quotes
Getting an accurate split system AC installation cost starts with good preparation. Follow these steps to compare quotes fairly.
Get at least three quotes. Three quotes from licensed installers gives you a realistic price range. If one quote is 40 percent below the others, check what components are excluded or whether the unit brand differs.
Confirm licensing. Every installer must hold an ARCtick Refrigerant Handling Licence plus a state electrical licence or subcontract the electrical work to a licensed electrician. Verify your installer on the TradieVerify directory.
Request a heat load calculation. A reputable installer calculates the correct unit size based on room dimensions, insulation, ceiling height, window area, and orientation. This prevents undersizing or oversizing.
Ask for itemised quotes. A good quote separates the unit cost, installation labour, electrical work, pipe run, brackets, and any extras. This lets you compare line by line across quotes.
Check what is included. Confirm whether the quote covers the dedicated electrical circuit, outdoor unit bracket, pipe run, trunking, commissioning, and compliance certificate. Hidden extras can add $500 to $2,000.
Hidden Costs and Exclusions
Budget blowouts happen when items not in the original quote appear during installation. These hidden costs catch homeowners off guard.
Dedicated electrical circuit. Most units above 3.5kW need their own circuit from the switchboard. If not included in the quote, budget $300 to $800 for the cable run and circuit breaker.
Switchboard upgrade. Older homes with ceramic fuse boxes or full switchboards need upgrading before a new circuit can be added. This costs $1,000 to $3,000 and must be done by a licensed electrician.
Extended pipe runs. Standard quotes typically include 3 to 5 metres of refrigerant pipe. Each additional metre costs roughly $80, including pipe, insulation, and trunking. A run from one side of the house to the other can add $400 to $1,000.
Condensate pump. If the indoor unit cannot drain condensate by gravity (common in units installed in centre rooms or below ground level), a condensate pump adds $150 to $400. In some cases, the condensate drain must connect to the building’s plumbing, which requires a licensed plumber.
Old unit removal. Decommissioning and disposing of an existing unit costs $100 to $500. Refrigerant must be legally recovered, not vented.
Strata and body corporate approvals. Apartment installations often require strata approval for the outdoor unit location. Some schemes mandate specific mounting positions, colours, or acoustic covers. If the pipe run passes through external walls, a licensed painter may be needed to make good afterwards.
Concrete pad or slab. If the outdoor unit sits on the ground, a concrete slab ($200 to $600) provides a level, stable base. Roof-mounted units require a licensed roofer to verify the roof structure can support the weight and that waterproofing is maintained.
Tips to Save Money on Split System AC Installation
Reducing your split system AC installation cost does not mean settling for poor quality. These strategies deliver genuine savings.
Choose a back-to-back location. Mounting the indoor and outdoor units on opposite sides of the same wall minimises pipe run length and labour time. This is the single biggest factor in keeping installation costs down.
Buy during off-season. Installers are busiest from October to February. Booking your installation in autumn or winter (April to August) often means better availability, faster scheduling, and potentially lower quotes.
Compare unit-only prices. Some installers mark up unit prices by 15 to 30 percent. Research the retail price of your chosen model and compare it against the quoted supply price. Some installers will not warranty units they did not supply, so check before buying separately.
Bundle multiple installations. If you are installing two or three splits across your home, bundling them into a single job saves on call-out fees and mobilisation costs. Many installers offer a 10 to 15 percent discount on multi-unit jobs.
Invest in energy efficiency. A 5 or 6 star unit costs $300 to $800 more upfront but saves $150 to $250 per year on electricity. The premium pays for itself within 2 to 4 years.
Improve insulation first. Ceiling insulation, draught sealing, and window treatments reduce the workload on your split system. A well-insulated room may need a smaller, cheaper unit. A licensed builder can advise on insulation improvements.
State-Specific Considerations
Each Australian state and territory has its own licensing requirements that affect split system AC installations.
New South Wales. Licensed electrical contractors must perform all electrical work. A CCEW compliance certificate is required. Strata regulations in Sydney often dictate outdoor unit placement.
Victoria. VBA regulates air conditioning under plumbing registration. A registered practitioner with Refrigeration and Air Conditioning specialisation is required. Melbourne’s cold winters make heating capacity as important as cooling.
Queensland. QBCC licence required for work over $3,300 (labour and materials). Three tiers: Occupational, Limited Design, and Unlimited Design. Check your installer on TradieVerify.
Western Australia. DEMIRS classifies air conditioning as restricted electrical work. Both an electrical licence and ARCtick refrigerant licence are required.
South Australia. SA has Australia’s highest electricity prices (35 to 40c/kWh), making energy star ratings critical. A 7-star unit saves over $330 per year versus a 2-star unit.
Tasmania. Cold climate makes heating performance the priority. Choose models rated for low outdoor temperatures (-10°C to -15°C).
ACT. Building work over $12,000 requires a licensed builder. Canberra’s continental climate means the unit works hard year-round. Choose high ratings on both cooling and heating star labels.
Northern Territory. Tropical climate requires cooling 8 to 10 months per year. Ensure the outdoor unit is rated for tropical conditions. Limited competition and freight costs push prices above average.
Frequently Asked Questions
What size split system do I need for my room?
As a rough guide: 2.5kW for rooms up to 20m², 3.5kW for 20 to 30m², 5kW for 30 to 45m², and 7kW+ for open-plan areas above 45m². Ceiling height, insulation, windows, and sun exposure also affect sizing. Ask your installer to perform a heat load calculation using AS/NZS 5141.
How long does a split system installation take?
A standard back-to-back installation takes 3 to 5 hours. If the job involves a long pipe run, second-storey access, new electrical circuit, or switchboard work, allow 6 to 8 hours. Multi-head or multi-split installations may take a full day or more depending on the number of heads.
Do I need a licensed electrician and an AC technician?
Yes. An ARCtick Refrigerant Handling Licence covers refrigerant work, and a state electrical licence covers the dedicated circuit and connections. Many AC companies hold both, but some subcontract the electrical component to a licensed electrician.
How much does it cost to run a split system per hour?
At 30c/kWh, a 2.5kW unit costs roughly 25 to 35 cents per hour, a 5kW unit costs 50 to 80 cents, and a 7kW unit costs 70 cents to $1.10. Higher star ratings reduce these figures by 20 to 40 percent. Inverter technology (standard on all modern splits) means the unit rarely runs at full capacity once the room reaches temperature.
Is it cheaper to run a split system or ducted system?
A split system is significantly cheaper to run if you only need to cool one or two rooms. A 5kW split system uses roughly 1.5 to 2kWh per hour. A ducted system serving the whole house uses 5 to 8kWh per hour without zoning. With proper zoning (closing off unused rooms), ducted running costs come closer to multiple splits, but the upfront split system AC installation cost is still far lower for one or two rooms.
Can I install a split system in a rental property?
Tenants need written landlord permission before installation. In most states, fixtures attached to the property become the landlord’s when the tenancy ends. Landlords can depreciate the cost over 10 years for tax purposes and must maintain fixed air conditioning that was in place at lease commencement.
Related Guides
- How to Hire a Licensed Air Conditioning Technician — Our AC technician hiring guide
- How to Hire a Licensed Electrician — Our electrician hiring guide
- Summer-Ready Home: Essential Trade Jobs to Book Before December — Our summer preparation guide
Sources
- Australian Refrigeration Council. ARCtick Licence Information. arctick.org
- QBCC. Mechanical Services Licensing. qbcc.qld.gov.au
- Department of Climate Change, Energy, the Environment and Water. Ozone Protection and Synthetic Greenhouse Gas Management. dcceew.gov.au
- Energy Rating. Air Conditioner Energy Star Ratings. energyrating.gov.au
- Canstar Blue. Air Conditioner Running Costs 2025. canstarblue.com.au
- Standards Australia. AS/NZS 5141 Residential Heating and Cooling Calculation. standards.org.au
- Master Builders Australia. Building Costs Guide 2025. masterbuilders.com.au
- Australian Competition and Consumer Commission. Australian Consumer Law: Services. accc.gov.au