Federal and State Governments have committed $18 million towards meeting the 40 per cent National Energy Productivity Target.
Environment Minister, Josh Frydenberg, said its time to improve and build on Australia's Energy Performance Standards.
"For example, the most efficient air conditioners sold in 2003 would no longer meet the minimum standards today, while houses built after 2010 use around 30 per cent less electricity than houses built before 2007," he said.
"This is why the Council Of Australian Governments (COAG) built the National Energy Productivity Plan (NEPP) to boost Australia's competitiveness."
Just last week there was a Council Of Australian Governments meeting to discuss energy market reforms.
This financial year $1.7 million will be spent on improving the energy efficiency of buildings while $3.2 million has been allocated to the new prioritisation strategy for accelerating appliance energy efficiency standards.
Funding will also go towards implementation of updated commercial building standards in the 2019 Australian Building Codes Board review of the National Construction Code.
Plus, funding to develop the case for new proposed residential building standards.
While the Energy Efficiency Council welcomed funding support its CEO, Luke Menzel, warned there is still a lot of work to do.
"Far more action will be required to fix our broken energy markets and keep energy affordable for homes and businesses," he said.