You request three quotes for a split system air conditioner. Same brand, same model, same room. The quotes come back at $1,800, $2,900, and $4,600. What's going on?
This isn't unusual. Our data shows that air conditioning installation quotes in Australia commonly vary by $2,000–$4,000 for identical jobs. Some of that gap is profit margin, but most of it comes down to real differences in what's being quoted — and what's being left out.
What actually drives the price
The unit itself is only part of the cost — often less than half. Installation labour, materials, and site-specific factors make up the rest. Here's what separates a $1,800 quote from a $4,600 one.
Factor 1: Pipe run distance
The simplest installation is "back-to-back" — the indoor unit sits on an exterior wall with the outdoor unit directly on the other side. Pipe run: 1–2 metres. Time: 2–3 hours. Cost: minimal.
But if your preferred room is in the middle of the house, the pipe run could extend 8–15 metres through ceiling cavities, wall spaces, or along external walls. Every metre of refrigerant piping adds $60–$120 in materials and labour.
Factor 2: Electrical requirements
Every split system air conditioner needs a dedicated electrical circuit from your switchboard. This is not optional — it's an Australian wiring rules requirement. If your switchboard has a spare slot and meets current standards, this adds $250–$500 for the electrician to run a new circuit.
If your switchboard is old, full, or non-compliant — common in homes built before 2000 — you may need a full switchboard upgrade before the aircon can be connected. This single factor accounts for the biggest price gap between quotes.
| Electrical scenario | Additional cost |
|---|---|
| Switchboard has spare slot, compliant | $250–$500 |
| Need to add circuits to existing board | $500–$1,200 |
| Full switchboard upgrade (old ceramic fuses) | $2,000–$4,000 |
| Three-phase upgrade (large ducted systems) | $3,000–$6,000 |
Comparing aircon quotes? See what installation typically costs in your area.
Check Air Conditioning Costs in Your City →Factor 3: Brand and efficiency
Not all 5kW split systems are equal. The unit cost varies dramatically based on brand tier, energy efficiency rating, features, and compressor quality.
Budget tier — $800–$1,200
- Brands: Kelvinator, Hisense, TCL
- Energy: 2.5–3.5 star
- Compressor warranty: 5 years
- Noise: moderate to loud
- Features: basic remote
Premium tier — $1,800–$2,800
- Brands: Daikin, Mitsubishi Electric, Fujitsu
- Energy: 4.5–6 star
- Compressor warranty: 7–10 years
- Noise: whisper-quiet
- Features: Wi-Fi, sensors, zones
Over a 10-year lifespan, a 5-star unit typically saves $150–$250/year in running costs compared to a 3-star unit. That's $1,500–$2,500 in energy savings — which more than pays for the upfront premium. However, some installers default to premium brands in their quotes while others default to budget brands, making the headline numbers misleading.
The real comparison: normalised quotes
Here's what happens when you compare three quotes on equal terms for the same 5kW split system installation:
| Item | Quote A: $1,800 | Quote B: $2,900 | Quote C: $4,600 |
|---|---|---|---|
| Unit (brand/model) | TCL 3-star | Daikin 5-star | Daikin 5-star |
| Installation | Back-to-back only | Up to 5m pipe | Up to 10m pipe |
| Electrical | Excluded | Included (new circuit) | Included (+ board upgrade) |
| Trunking (pipe cover) | Excluded | Included | Included |
| Old unit disposal | Excluded | Included | Included |
| Installation warranty | 1 year | 5 years | 5 years |
Once you normalise for unit brand, pipe run, electrical, and inclusions, the actual price gap narrows dramatically. Quote A with the same unit and inclusions as Quote B would be closer to $3,200.
Your comparison checklist
When getting aircon quotes, make sure every installer is pricing the same thing:
- Specify the exact unit model and brand you want quoted
- Ask the installer to measure and state the pipe run length
- Confirm whether electrical work (dedicated circuit) is included
- Ask about switchboard condition — will it need upgrading?
- Check if pipe trunking / concealment is included or extra
- Confirm the type of outdoor unit bracket (wall, slab, roof)
- Ask about disposal of your old unit
- Get the installation warranty in writing (separate from manufacturer warranty)
- Check what happens if they find issues during install (e.g., inaccessible roof cavity)
For detailed pricing by city, see our Air Conditioning Cost Guide.