tZero (or low) energy housing standards are being implemented in several developed countries and rep-resent international best practice for minimum performance outcomes for new dwellings. However, thedebate in Australia regarding housing energy performance continues to revolve around 'sustainability'versus 'affordability', with affordability typically prioritised as the more pressing short-term policy chal-lenge. There is limited analysis informing this debate, particularly regarding higher energy efficiencyrequirements and the integration of renewable energy technologies to achieve a zero (net) energy house(ZEH) outcome. This paper aims to address the limited empirical evidence regarding costs and benefitsof ZEH in Australia. A cost-benefit analysis focusing on new detached housing in Victoria, Australia wasundertaken to determine upfront and through-life costs and benefits of ZEH performance. Results showthat ZEH is a least cost scenario, in terms of capital and through-life operational energy costs, comparedto a business as usual approach or improving the thermal performance of the building envelope only. Theresearch highlights that ZEH standards are economical in Australia and that sustainability assists withaffordability when a through-life perspective is applied.