Key takeaways
- What a fitout is: The full build of your venue: kitchen, services, front of house, and finishes. In 2026 it runs from about $100,000 for a small cafe to $1.5 million or more for a large venue.
- What changed: The National Construction Code 2025 was published on 1 February 2026, and states can adopt it from 1 May 2026. It adds on-site solar and tighter energy rules to new commercial buildings.
- Where the money goes: Equipment is 40 to 60% of the budget. Cooking gear and refrigeration, not finishes, decide the number.
- Order early: Imported equipment carries 8 to 16 week lead times. Lock orders before you finalise the build program, or the fitout stalls.
- From 1 July 2026: Award wages rose 4.75%, the national minimum wage is now $26.44 an hour, and payday super began. All of it pushes venues toward labour-saving layouts.
- New build or refurbish: Solar and full energy rules bite hardest on new buildings, so a refit inside an existing shell can sidestep the heaviest costs.
A hospitality fitout is the whole job of turning an empty tenancy into a working venue: the kitchen, the services behind it, the front of house, and the finishes on top. In 2026 that job costs roughly $100,000 for a small cafe and $1.5 million or more for a large venue. Both the rules and the cost base have changed since 2025. A plan drawn up a year ago is likely under-budgeted, and for a new building it is no longer code-compliant. This guide sets out what a fitout costs in 2026, what the new code changes, and how to sequence the build. It is general information, not legal or building advice.
How the 2025 building code changes a fitout
The National Construction Code 2025 was published on 1 February 2026, and states and territories can adopt it from 1 May 2026, according to the Australian Building Codes Board. Each jurisdiction sets its own start date, and NSW has deferred adoption to May 2027, so confirm which edition applies where you are building. Without meeting the code you cannot get the approvals to open, so it is the first thing to design around, not the last.
The changes that reach hospitality most directly are energy, water, and safety. In practice they mean more consultants and earlier decisions, which adds cost and time to a new build in particular.
| What changed | What it means for your fitout | Where it bites hardest |
|---|---|---|
| On-site solar on new commercial buildings | Roof space and electrical design committed to solar, adding cost and design steps | New builds |
| Tighter insulation and HVAC standards | Higher-spec climate systems that lift equipment and install cost | New builds, larger refits |
| Improved waterproofing and facade detailing | More drainage and membrane work in kitchens, cool rooms, and wet areas | All wet-area work |
| Photoluminescent exit signage and safer stair re-entry | Updated signage and egress detailing in the compliance scope | Multi-level venues |
| Improved lighting controls | More efficient lighting design specified from the start | New builds, refits |
The takeaway is simple: bring your certifier and services engineer in at concept stage. A change forced late by the code is the most expensive kind, because it reworks drawings the trades have already priced.
What a hospitality fitout costs in 2026
Fitout cost per square metre now sits at $1,500 to $3,000 for a basic refit, $3,000 to $5,000 for a standard build, and $5,000 to $8,000 or more for a large or specialised kitchen. Construction costs are forecast to rise about 4% across 2026, and imported steel and aluminium are up 5 to 10% year on year. So a like-for-like fitout is broadly 5 to 10% dearer than a year ago, before any new code items. If you are pricing a specific venue, the cafe fitout buying guide and the restaurant fitout buying guide break the numbers down by type.
| Venue type | Typical fitout cost | Kitchen build rate |
|---|---|---|
| Small cafe (up to 80 sqm) | $100,000 to $350,000 | $1,500 to $3,000 per sqm |
| Mid-size restaurant or bar (80 to 250 sqm) | $350,000 to $800,000 | $3,000 to $5,000 per sqm |
| Large or specialised venue (250 sqm plus) | $800,000 to $1,500,000 plus | $5,000 to $8,000 plus per sqm |
Equipment is where the money goes: it is 40 to 60% of a typical fitout budget. Cooking equipment runs $15,000 to $80,000 or more, refrigeration $10,000 to $60,000 or more, exhaust and ventilation $8,000 to $40,000 or more, and gas and plumbing $5,000 to $25,000. Those items also carry the longest lead times, so ordering drives the program. Imported gear takes 8 to 16 weeks, and a layout locked late is the single most common cause of a delayed opening, so compare fitout suppliers and lock quotes before you commit.
The energy rules are changing the equipment you buy
Energy is the biggest running cost in a venue, and the 2025 code pushes new fitouts toward lower energy use by design. That changes the default equipment choice at several points in the kitchen, not just the switchboard. You trade a higher upfront spend for lower bills and easier compliance. The main changes to plan for:
- Cooking line: Gas ranges were the 2025 default. The new rules favour induction and electric where the menu suits it, cutting both ventilation load and energy use.
- Refrigeration: The cheapest compliant unit was the old default. Higher-efficiency fridges and freezers with better seals and controls lower the load your power and HVAC design then carry.
- Ventilation and HVAC: Standard extraction gives way to higher-spec systems with heat recovery to meet the tighter standards.
- Power supply: New builds add on-site solar, sized against the roof space available.
If your menu allows it, shifting part of the cooking line to induction reduces the extraction you install and the energy the kitchen draws, which helps on two code fronts at once. On the cold side, paying up for efficient refrigeration lowers the load your HVAC and power design have to carry. Price the efficient option against the cheap one on total running cost, not the price tag alone.
Operating cost changes that reshape the fitout brief
A cluster of changes landed on 1 July 2026, and together they change what you should build, not just how you run the venue. Award wages rose 4.75% and the national minimum wage is now $26.44 an hour, according to the Fair Work Ombudsman. Payday super also began, so super is paid at the same time as wages rather than quarterly. With labour costing more, a layout that lets fewer staff cover more tables is worth paying for at fitout stage.
Two more changes touch the front of house. Card surcharges are set to be wound back, which shifts payment costs onto the venue and makes integrated point-of-sale and self-order setups more attractive to design in from the start. New seafood country-of-origin labelling means menus and digital displays need Australian, imported, or mixed-origin markings, so plan menu boards and screens around it rather than retrofitting later. One more to raise with your accountant: the $20,000 instant asset write-off is set to continue, which affects the best timing to buy eligible equipment.
A realistic scenario
Picture an operator fitting out a 120-seat restaurant in an existing Sydney shell, taking over a tired venue that has closed. The lease is signed, the menu is set, and the budget was drawn up in 2025.
Because the space is an existing shell, the heaviest new-build items, on-site solar and the full energy upgrade, do not all apply, which saves a large sum. The operator still designs to the current code from concept stage and brings the certifier in early. The kitchen is priced at $3,000 to $5,000 per square metre, and equipment is ordered the moment the layout is locked, because the imported combi oven and refrigeration carry a 12-week lead time. Part of the cooking line goes to induction to cut the exhaust load, and the front of house is built around integrated point-of-sale to soften the wage and surcharge changes. The fitout lands near the middle of the mid-size band, and the opening date holds because nothing waited on a late equipment order.
Frequently asked questions
Do the new building code rules apply if I am fitting out an existing space?
The heaviest items, on-site solar and the full energy upgrade, apply mainly to new commercial buildings, so a refit inside an existing shell faces lighter obligations. The trigger is whether your scope counts as a new building or a change of use, which your building certifier confirms at design stage.
Is it cheaper to refurbish an existing venue than build new in 2026?
Usually yes. A refurbishment inside an existing shell avoids the on-site solar and full energy upgrades that hit new commercial buildings hardest. The trade-off is that you are limited to what the existing structure and services allow.
Which 1 July 2026 changes affect the fitout itself?
Higher award wages and payday super make labour-saving equipment and efficient layouts more valuable. The card-surcharge change pushes many venues toward integrated point-of-sale and self-order setups, and seafood country-of-origin labelling changes how you plan menu boards and displays.
How much of a fitout budget is equipment?
Around 40 to 60%. Cooking equipment and refrigeration are the biggest single items, and because they also carry the longest lead times, they drive the build program as well as the budget.
What matters most
Treat the building code and equipment lead times as the two hard constraints, and everything else as budget you can flex. Design to the code from concept stage, then order long-lead equipment the moment the layout is locked. Those two steps protect your opening date more than any finish choice.
Refurbish inside an existing shell when the space is broadly the right shape and the services exist, which sidesteps the heaviest new-build solar and energy costs. Build new when you need a layout the shell cannot give you, and accept that the code adds cost and time in return. Proceed now if your menu and layout are locked, your budget carries the 5 to 10% cost rise, and equipment is on order early. Pause if your scope could still tip from refurbishment into new-build obligations, or your program has no slack for 8 to 16 week equipment lead times.
Ready to compare fitout suppliers and pricing for your venue? Get quotes from hospitality fitout specialists across Australia here.
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