As the 7-Star NatHERS requirements and Whole-of-Home energy standards roll out across Victoria, residential construction faces new performance demands. One major shift: thermal bridging is now explicitly factored into compliance—and that’s disrupting the economics of traditional timber-framed walls.

Previously, a 90mm stud wall with R2.5 insulation was enough. Now, builders must account for the heat transfer through framing itself, which drastically reduces effective thermal performance. To meet compliance, they must either use deeper 140mm studs, add rigid insulation externally, or adopt more complex systems like double-stud walls. Each adds cost, labour, and coordination.

This is where Cross-Laminated Timber (CLT) becomes a standout alternative.

CLT walls offer high thermal performance with fewer thermal breaks. Their solid panel format simplifies air-tightness, speeds up construction, and supports external insulation strategies without requiring deep wall cavities. What was once considered a premium system is now often cost-comparable—especially when you factor in reduced trades, fewer defects, and ESG benefits.

The Disappearing Cost Advantage of Stud Framing

For years, timber-framed construction had one main advantage: cost efficiency. But under current energy rules, that edge is eroding.

Builders now report the need to reframe their entire approach — literally — as conventional 90mm walls can no longer meet performance thresholds without significant upgrades. And these upgrades aren't free. Rigid insulation, vapour membranes, deeper window reveals, and increased wall thickness all add to the total project cost.

Why CLT Makes More Sense Than Ever

This is where Cross-Laminated Timber starts to make a compelling case.

CLT offers:

• Solid, continuous wall panels with far fewer thermal breaks,

• High inherent R-values due to density and mass,

• The ability to add external insulation efficiently, without chasing internal stud cavities,

• And a shallower wall build-up for the same thermal performance.

Instead of layering multiple framing and insulation systems, CLT can form both the structure and thermal envelope, reducing trades, construction time, and coordination errors.

For developers and architects, it’s time to look beyond traditional framing. Mass timber not only performs better—it may now be the smarter commercial choice.