How much does air conditioner installation cost in Australia?

If you recently bought a new house or established a commercial space, installing an air conditioner is necessary to keep indoor spaces cool and comfortable. 

However, with the advanced technologies integrated into modern units, installations are now more complex, resulting in higher prices. The good news is that there are many ways to keep costs down, and that starts with understanding how much it costs to install an air conditioner. 

This guide on air conditioner installation costs in Australia will help you prepare your budget and make informed decisions about which unit best suits your home. 

What are the average costs of air conditioner installation in Australia?

On average, air conditioner (AC) installation costs $550 to $735. However, prices can vary widely by city because each area has a different cost of living.

Sydney and Melbourne have the highest installation costs because these cities often experience variable climates. Homes and commercial spaces in these cities need reverse-cycle air conditioners to adapt to varying climate conditions. These usually cost more to install than a simple window air conditioning unit.

Here is a breakdown of the average costs of installing air conditioning by city: 

*These figures cover indicative installation labour only and do not include the cost of the air conditioner. They have been adjusted using the latest Australian inflation rate.

What factors affect the costs of air conditioner installation?

Various factors can affect the total cost of installing an AC system, and we’ll break them down in this section. This will help you stick to your budget while still meeting your cooling needs. 

Air conditioner brand

Like other appliances, air conditioners come from different brands with varying features and designs. Premium brands such as Daikin, Mitsubishi, Fujitsu, and Panasonic offer advanced features that require specialised installation, so installation costs more. 

Moreover, most premium brands come with extended warranties. For the warranties to be valid, you’ll have to ask the technician to use branded parts, driving up the cost. 

For instance, Mitsubishi Electric and Daikin air conditioners are equipped with smart connectivity systems that require the installer to use additional wiring to integrate into a home’s automation system. They will have to work with precision and use brand-specific parts to ensure proper installation, which can lead to higher prices. 

Meanwhile, budget brands such as Hitachi and Hisense require simple installations, as their air conditioning units often have limited advanced features. These brands can be a viable option for users looking to save on initial costs or those with simpler cooling needs. 

Below are some of the popular air conditioner brands in Australia and their average cost per unit and installation:

Air conditioning type

Your choice of air conditioning type may also affect installation costs. Let’s start with the most common one—the split system air conditioner. Also known as the ductless mini-split, a split-type system comprises an indoor unit and an outdoor compressor that releases the heat absorbed from inside the building to the outside. 

A ductless mini-split is more affordable than ducted air conditioning but more expensive than a regular wall or window unit. Split-system air conditioners typically cost around $1,260 to $6,560 for the unit and installation.

Another variation of split system air conditioning is a multi-split. Installation costs are higher for a multi-split air conditioner because it consists of several indoor units connected to a single outdoor unit compressor. Installers need to use additional piping to connect the entire air conditioning system. The cost of fitting a multi-split air conditioner is typically around $2,720 to $8,120.

Knowing the features of an AC unit before purchasing. (Source: iStock)

Next are the ducted air conditioners. These are the most expensive types of air conditioning because they require additional ductwork before installation. Even if you already have some ducts installed, the technician must upgrade the ductwork and wiring before installing the air conditioner. Ducted systems can cost more than $16,400, particularly for larger homes or installations requiring extensive new ductwork.

Fortunately, you can still find inexpensive ones like window and through-the-wall units. The former are simpler to install, as you only need to set up an air conditioner in an open window. 

Through-the-wall units require more labour because you may need to ask a carpenter to cut a hole in the wall that would fit the air conditioner. Despite the added expense, wall air conditioners are relatively affordable to install, with prices ranging from $1,110 to $2,100. 

Portable air conditioners may start at approximately $310 for the unit alone, while the installed or setup cost may range from $950 to $2,100, depending on the model and work required.

Below is a breakdown of the air conditioning prices based on type:

Area size

Air conditioning installation costs can also depend on the size of the area to be cooled. For example, large rooms with an area of more than 60 m² require air conditioning units with a high capacity, ideally around 6-10kW, to ensure optimal cooling. Installation costs are higher because high-capacity air conditioners often require more components to operate. 

Here’s a rough guide on the ideal air conditioning system capacity based on the room size and estimated installation costs:

Installation complexity

Labour is often correlated to the time spent completing a job. So, the more advanced an air conditioner is, the higher the installation cost. Take multi-split air conditioners, for example. Even though they usually don’t need ductwork, some structural modifications and preparation are required before installation. 

You’ll have to hire a carpenter or engineer to create wall openings for the refrigerant lines and drainage. AC installations also involve some electrical work, especially if your house is old and needs new electrical panels or circuits to handle the load of modern air conditioning units. 

Moreover, the additional tools required to complete the job can increase the cost of installing air conditioning. This often applies to a split-system air conditioner, in which installers use vacuum pumps to remove excess moisture from the refrigerant lines, as moisture can damage internal components. 

 Installing a split air conditioner for efficient cooling. (Source: iStock)

Location

Your location can also dictate AC installation costs. Hiring HVAC technicians in Sydney and Melbourne is more expensive because these areas have a higher cost of living. The average labour cost for air conditioner installations in these cities is around $104/hour. 

In regional areas needing heating & cooling services in Shepparton or Geelong, rates may be more affordable, often starting around $62/hour, but can still vary based on the technician’s experience and the complexity of the job.

Urban locations with more apartment buildings, like parts of Frankston North, may require multi-split systems or ducted units, which can be more expensive to install than standard systems in standalone homes.

Climate and weather patterns in a specific region can also affect air conditioner installation costs. In places like the Mornington Peninsula and the Central Coast, where residents often face both hot summers and chilly winters, reliable heating and cooling systems are in high demand. This translates to higher installation costs.

State and local regulations

Each state also has its own licensing requirements for air conditioning installations. Victoria, for instance, has specific plumbing regulations for refrigerated air conditioning. Arranging for permits can further increase installation costs. 

Moreover, most states in Australia must adhere to minimum energy performance standards to minimise energy consumption. Because of this, consumers must invest in higher-rated, more expensive air conditioners. 

Special features or upgrades

Although special features and upgrades can increase the total cost of installing an air conditioner, they can help you save in the long term by improving energy efficiency. Here are some of the most popular features or upgrades for air conditioners: 

Smart thermostat

Enjoy effortless climate control with a smart thermostat. (Source: iStock)

Adjusting air conditioner temperature settings is easier with smart thermostats. These devices allow you to control and program air conditioners using your smartphone or tablet over Wi-Fi. Some smart thermostats also have AI-integrated systems that can learn your habits and automatically adjust to your desired temperature settings. 

In Australia, smart thermostats may cost approximately $50 to $1,180 for the unit alone. Installation may add around $104 to $311, depending on compatibility, wiring, integration requirements, and whether electrical modifications are needed. 

Air purifier

Some air conditioners now have an air purification system with built-in HEPA filters that help remove allergens like dust, pollen, and dander. Since this is an added feature, it requires more labour and configuration on the installer’s part, so expect higher costs. 

Additionally, you’ll have to factor in future maintenance costs. Once it’s time for your periodic air conditioning cleaning, you’ll need to have the filters and other essential purifying components replaced.

UV light

Adding UV light is a good idea if you want to level up your air purifying systems. It sterilises air and eliminates bacteria, mould, viruses, and other harmful microorganisms, preventing microbial growth. This makes it easier to maintain your air conditioner by keeping the ducts and components clean, improving efficiency and longevity.

UV lights designed for air conditioning systems may cost around $62 to $302, with installation adding approximately $104 to $234. 

Variable speed compressor

Energy efficiency is a vital feature in modern air conditioners, as it helps lower electricity consumption. Units with variable-speed compressors are prime examples of environmentally friendly appliances, as they dynamically adjust their speed to maintain a consistent indoor temperature. 

For instance, if it’s too hot, the compressor might run faster to cool the room faster. On the other hand, if the weather is mild, it runs at a lower speed, using less energy while maintaining a steady temperature.

Since this is a unique and advanced feature, air conditioners with variable-speed compressors have higher upfront costs, ranging from $2,385 to $4,308. Despite the added expense, it’s a worthwhile investment for homeowners looking into long-term energy savings and improved systems.

Noise reduction tech

Relax undisturbed with a silent air conditioning system. (Source: iStock)

Most premium air conditioning units have noise reduction technology, such as quiet mode settings, integrated into their systems. This includes insulated compressors, vibration dampers, and specially designed fan blades that help minimise noise.

One of the benefits of upgrading to an air conditioner with noise reduction technology is that it enhances user comfort while sleeping or working in a home office. 

Date and time

Your timing of availing of the service can also affect AC installation prices. Expect costs to be higher during summer (which often starts around December), when demand for such services surges. You’ll have to wait longer since installers are often busier during this peak season. 

Overtime charges should also be considered when installing air conditioners. Installations usually last 4 to 8 hours, so there’ll be extra labour charges if they go beyond this timeframe. 

While installing a new air conditioning system is a significant investment, sometimes a repair might be a more cost-effective solution. If your current system is underperforming, consider booking an aircon repair service before deciding on a full replacement. Airtasker offers access to experienced technicians in Sydney, Logan–Beaudesert, Gold Coast, Ipswich, and West Melbourne. They can assess your system and provide expert advice.

What are some ways to save on air conditioner installation?

Cut costs with smart air conditioner installation choices. (Source: iStock)

Optimise home energy efficiency

Before the scheduled installation, you may need to improve your home's energy efficiency. Hire someone to seal gaps around doors, windows, and openings. This helps prevent the air conditioner from working too hard, helping lower your energy bills. Also, consult an electrician to check if the existing wiring and circuits are compatible with the new air conditioner. Doing all these extra steps helps prevent incurring additional charges during installation. 

Leverage rebates and incentives

In Australia, several rebates and incentives are available to customers who invest in energy-efficient appliances. 

The Victorian Energy Upgrades (VEU) is one of the programs you can use to get rebates and discounts when buying energy-efficient air conditioners. As long as the unit is listed with the Essential Services Commission and the installer is a VEU-accredited provider, you are already eligible for the rebate. 

The New South Wales (NSW) government also offers an upfront incentive for users to upgrade their air conditioning systems to a more energy-efficient model. The program provides an upfront installation discount if an accredited supplier does the work.  

Take advantage of off-season discounts 

Earlier, we mentioned how demand spikes during summer, so plan AC installation as much as possible during the cooler months, around June to August. HVAC contractors often experience lower demand, so discounts and promotions are common during these periods. Also, since installers aren’t too busy, you can hire a preferred installer right on the schedule.

Upgrade to zoned cooling

Zoned cooling means dividing the indoor spaces into sections or zones, each with its own thermostat and control. This helps you identify which specific areas require the most cooling. You’ll save on installation costs because this eliminates the need to build and install more complex ductwork. 

What should you look for in a professional aircon installer?

Ensuring peak performance with professional AC maintenance. (Source: iStock)

Licenses and certifications

Heating and cooling technicians should hold an ARC (Australian Refrigeration Council) licence, as this indicates that they are already authorised to handle refrigerants, which can have environmental and health impacts. A Heating, Ventilation, and Air Conditioning (HVAC) certificate is also important, as this document shows that the technician has undergone formal training in handling various air conditioners. 

Knowledge of energy efficiency and compliance 

Skilled installers should be knowledgeable about energy rating labels to help you quickly decide which models can reduce your daily energy consumption. Most importantly, they should provide guidance on environmentally friendly refrigerants like R-32 or R-410A in air conditioners. These substances can significantly harm the environment when used too much. 

Australia also has some energy-efficiency laws regarding residential heating and cooling, so the installer must be aware of them to avoid legal violations. Following the guidelines ensures the air conditioner operates safely and efficiently after installation.  

Ability to conduct thorough assessments 

It is crucial to find a hands-on installer who performs a thorough assessment, checking everything from room size and ceiling height to insulation. This will help you choose an air conditioner that has the right size and capacity to cool your home effectively. Additionally, they should consider zoning needs, especially if you have a large home. 

Aside from the initial assessment, the installer should consider future expansions or upgrades. For instance, if you eventually plan to build a smart home once your budget is sorted, they should be able to recommend compatible units.

Partnerships with reputable brands

Quickly research online to check whether the installer has partnerships with reputable brands. These brands uphold high standards regarding products and services, so you can rest assured that the air conditioner installer affiliated with them will deliver quality work. 

Affiliated installers also provide warranty-backed labour and parts, so choosing them helps ensure your warranty remains valid after installation.  

Beat the heat at home with Airtasker

Now that you know how much it costs to install an air conditioner, the next step is to find a reliable installer. Posting a task on Airtasker can help you easily connect with experts in your area. Simply describe your specific needs and budget, and you’ll receive offers from various air conditioning installers, allowing you to compare and choose the services that best fit your needs. 

Having a reliable Tasker handle the tedious work can help you avoid the stress of installing an air conditioner. So, post a task today and enjoy lounging in your cool, comfortable home.