The key points
- Airflow comes first: the unit needs clear space to draw air in and blow it out without breathing its own exhaust.
- Noise travels to bedrooms, yours and the neighbours'. EPA Victoria sets late-night and early-morning times when audible air conditioning is unreasonable.
- In heating mode the outdoor unit drips water, so keep it off paths and give that water somewhere to go.
- Shorter pipe runs are better, but a technician still has to reach the unit and its isolator safely.
- Shade helps a little. Blocking airflow to get it hurts a lot.
Airflow comes first
The outdoor unit is where heat goes in summer and where it comes from in winter. It pulls air across its coil and blows it out, usually through the front grille. Anything that stops that air moving freely costs capacity and efficiency.
Manufacturers set minimum clearances behind, beside and in front of the unit. The usual mistake is the tight spot: a narrow side passage between two brick walls, a corner behind the garage or a nook under a deck. The unit ends up breathing its own discharge, which is hotter in summer and colder in winter, and on a hot northerly afternoon it can throttle back or trip out when you need it most.
Keep the front clear of fences, bins, stacked timber and plants that will grow into it. Don't box it in to hide it unless the enclosure has open louvres and gives the clearances the manufacturer asks for.
Noise, bedrooms and neighbours
Outdoor units hum, the fan whooshes, and the compressor note carries further at night when everything else is quiet. Split systems carry an outdoor noise rating on the Zoned Energy Rating Label, which helps when comparing models, but position usually matters more than a few decibels on paper.
EPA Victoria's residential noise rules treat an air conditioner as unreasonable during prohibited times if someone in a habitable room of another home can hear it. For cooling, its guidance lists those times as before 7am and after 11pm on weekdays, and before 9am and after 11pm on weekends and public holidays, with an exception during a heat health warning. In heating mode the unit counts as a home heater, and the evening cut-off is 10pm. A unit under a neighbour's bedroom window can become a real problem on summer nights.
Hard surfaces bounce sound. A unit in a corner between two brick walls, or facing a paling fence a metre away, sounds louder than one in the open. Wall brackets on lightweight walls can carry vibration into the room behind, so a ground pad with rubber mounts is often quieter than a bracket on a bedroom wall.
Water, ice and drainage
In heating mode the outdoor coil runs colder than the outside air. Moisture condenses on it, and on frosty mornings it freezes, then melts off during defrost. Melbourne sits in the Cold zone of the Zoned Energy Rating Label, where frosting conditions below 5.5 °C are critical, so plenty of winter mornings produce a steady trickle from the base of the unit.
Keep the unit away from paths, steps and doorways, where drips can freeze or leave a slippery green stain, and away from timber decking. On a wall bracket, the water lands on whatever is below. A pad on gravel or beside a garden bed, or a drain fitting on the base piped to a drain point, gives it somewhere to go.
Avoid low spots that collect water or leaves, and positions under a gutter with no downpipe, where storm water pours straight onto the unit.
Afternoon sun and hot corners
A unit in full western sun works harder on a summer afternoon. Laverton averages 27 days a year at or above 30 °C and 9.4 days at or above 35 °C, and those are the afternoons when a few degrees around the coil matter. A south or east wall, or the shade of the house itself, is the better choice when the layout allows.
But shade that blocks airflow is worse than sun. A shade sail well above the unit or the shadow of a wall helps; a lattice box or a hedge pressed against it doesn't. Keep the unit clear of other heat sources too, such as another unit's discharge, a heat pump water heater or a gas flue outlet.
Pipe runs, height and the indoor head
The outdoor unit connects to the indoor head through a pair of refrigerant pipes, a drain and a cable. The shorter and more direct that run, the neater the job, and a back-to-back position through the same wall is often the tidiest of all.
Every model has a maximum pipe length and height difference, and some have a minimum. Longer runs mean more pipework and covers, and sometimes extra refrigerant, so a spot a few metres along the wall is usually fine, while one on the far side of the house may not be.
On a double storey, the choice is usually a ground unit with the pipes run up the wall in a cover duct, or a bracket high on the wall or a roof mount. Ground units are far easier to service, while high brackets and roofs need safe access for every future visit.
Service access, the isolator and safety
Whoever services or repairs the unit needs to reach its panels, the pipe connections and the isolator. The Wiring Rules require a lockable isolating switch next to the unit, not on it, so leave room for the switch and for someone to stand at it. A unit jammed behind a water tank or under a low deck turns a simple service into a difficult one.
Think about who else is around it. Children climb on units, dogs chew pipe insulation, and mowers and line trimmers nick pipe covers. A unit on a raised stand, or behind a low open fence, is safer from all three.
Near the bay, salt air wears outdoor units faster. An industry guide based on AS 4312 classes the Port Phillip Bay beaches from Altona to Portsea as an exposed marine environment, so on homes close to the water, a spot sheltered from the wind off the bay and a unit with factory corrosion protection on the coil both help.
Owners corporations, councils and the street
In townhouses and apartments, the owners corporation's rules often decide where outdoor units can go, and balconies or roofs may need approval. Check before you settle on a spot.
On a heritage-listed street or in a special character area, such as parts of Williamstown or the post-war precincts in Altona, ask your council whether a unit visible from the street needs a permit. A side or rear position usually avoids the question, and looks better anyway.
Common questions
Quick answers
- What is the switch next to my outdoor unit for?It's an isolating switch that cuts all power to the air conditioner, so a technician can work on the system safely without relying on the switchboard.
- Why isn't the fan on my outdoor unit spinning?A still outdoor fan isn't always a fault.
- Can one reverse-cycle air conditioner meet both rental heating and cooling standards?Yes.
- My rental has no fixed heater in the living area. Is that allowed?No.
Sources for this guide
7 sources, with the date each was checked
- 1.Bureau of Meteorology (article issued 3 August 2026): To the north lies Australia's hot, dry interior, while to the south stretches the cold Southern Ocean. ... Warm northerly winds arrive first, bringing higher temperatures and clear skies. Then, as a cold front moves in… Accessed 30 September 2026.
- 2.Energy Rating (GEMS Regulator / DCCEEW): On the right of the label after the stars, is the estimated annual energy use or power input in kilowatt hours (kWh) displaying cooling in blue (top number) and heating in red for each climate zone. ... Products are… Accessed 30 September 2026.
- 3.Commonwealth of Australia (2019), 'The new zoned energy rating label for air conditioners—What installers and retailers need to know', hosted on energyrating.gov.au: Melbourne is in a black ‘COLD’ area—read the black Cold ratings. Accessed 30 September 2026.
- 4.Bureau of Meteorology: Mean number of days ≥ 30 °C 6.9 6.0 4.5 0.7 0.0 0.0 0.0 0.0 0.1 0.9 2.8 5.1 27.0 82 1943 2026 Mean number of days ≥ 35 °C 3.6 2.4 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.5 1.9 9.4 Accessed 30 September 2026.
- 5.Access Canberra Electrical Inspections (ACT Government), Electrical Fact Sheet, updated September 2019: Air-conditioning and heat pump systems incorporating a compressor shall be provided with an isolating switch (lockable) in accordance with Clause 2.3.2.2, installed adjacent to but not on the unit, which isolates all… Accessed 30 September 2026.
- 6.BlueScope, Technical Bulletin TB-35 Australian salt marine classifications (March 2026, Revision 9): Exposed Port Phillip Bay (Altona to Portsea Beaches) Calm Port Phillip Bay (Williamstown), Yarra River (Docklands and Melbourne CBD), Maribyrnong River Accessed 30 September 2026.
- 7.Victorian Government, Hobsons Bay Planning Scheme (PDF snapshot, last updated by VC292 on 11/09/2025): SPECIAL CHARACTER AREAS, ALTONA 1.0 24/02/2022 C131hbay Neighbourhood character objectives To preserve the characteristics of the neighbourhood, comprising intact post-war brick and weatherboard dwellings with… Accessed 30 September 2026.
Planning advice for homeowners. Installation requirements depend on the property and equipment. Where this guide refers to Victorian safety or rental rules, use the linked official guidance for the current requirements.

