The installation cost of a split system depends on the unit’s capacity, how far the outdoor unit sits from the indoor unit, the wall and floor it goes on, and whether your switchboard needs a new circuit. A “back-to-back” installation, with the outdoor unit directly behind the indoor unit on the same wall, is the simplest and cheapest. Longer pipe runs, second-storey units, brackets and electrical upgrades all add to the price.

Because those factors vary so much from home to home, we quote after looking at the site or photos, not from a price list. This guide explains each factor so you know what you are paying for.
What goes into an installation quote
| Item | What it covers |
|---|---|
| The unit | Indoor and outdoor units, priced by capacity (kW) and model |
| Standard installation | Mounting both units, a short pipe run, drain and a standard wall penetration |
| Extra pipe length | Charged by the metre beyond the standard allowance |
| Wall brackets or a ground pad | For the outdoor unit |
| Electrical work | A dedicated circuit and isolator by a licensed electrician; sometimes a switchboard upgrade |
| Access | Second-storey or roof-mounted outdoor units may need extra labour or equipment |
| Removal of the old unit | Including recovering its refrigerant, which must be done by an ARCtick-licensed technician |
Back-to-back vs a long pipe run
The shortest route between the units is cheapest and performs best. When the outdoor unit has to go around a corner, across a ceiling or down from a second storey, the extra pipe, insulation and labour add cost. It is still often the right choice for noise, looks or space.
How to size a split system
Capacity should match the room, its insulation, its windows and which way it faces. As a rough starting point, a small bedroom needs a smaller unit than an open-plan living area, and west-facing glass adds a lot of heat. An installer should measure the room rather than guess, because an oversized unit cycles on and off and an undersized one runs flat out.
Choosing the unit
Compare the energy rating for both heating and cooling, the indoor noise level, the warranty and the local service network. Our brands guide and Daikin vs Mitsubishi Electric comparison can help. If you are weighing up a whole-home system, read split system vs ducted.
Getting a quote
Send us a request with the room size, where you would like the indoor and outdoor units, and a photo of the wall and switchboard if you can. We will come back with a firm quote.
To compare how much different models cost to run, check the star ratings on the Australian Government’s Energy Rating website.
Reviewed by AC repair and service specialist on 22 October 2026. How we write our articles