This Cost Benefit Analysis examines the impacts arising from a proposal to change the star rating algorithm for the energy rating labelling system for refrigerators and freezers. It is a precursor to a formal Regulatory Impact Statement, which will be prepared once public comments on this document are received and considered. The proposed regulation is an element of the Equipment Energy Efficiency (E3) program, which is an initiative of the Ministerial Council on Energy (MCE) forming part of both the Australian National Framework for Energy Efficiency and the New Zealand National Energy Efficiency and Conservation Strategy.This report was prepared by Energy Efficient Strategies for E3 in consultation with the Australian Greenhouse Office and the Energy Efficiency and Conservation Authority of NZ.The main aim of this project is to implement a revised energy labelling proposal for refrigerators and freezers that is both technically sound and that will provide a solid basis for the rating of products in Australia and New Zealand over at least the next 5 and more likely for as long as 10 or more years. Ultimately the proposal will have to be a compromise that maximises agreement between local manufacturers, importers, government and consumer groups as well as meeting the objectives of an algorithm revision with reasonable longevity that achieves the program objectives.There has also been identified a need to introduce a revision to the refrigerator and freezer test method; AS/NZS 4474.1. These changes are to facilitate improved accountability in testing procedures and reduce the possibility of manufacturers finding loopholes in the test procedure which can be exploited in terms of advantageous energy claims. While this action would normally be included as a separate future regulatory change (and accompanying RIS), it is proposed to couple the proposed energy labelling algorithm and label changes with a requirement to use the revised test method in order to minimise total cost for suppliers and manufacturers. Transition costs to the new test method are included in the estimated costs and benefits for this project.A detailed discussion paper on the likely form of the new star rating algorithms for refrigerators and freezers was released in September 2007. This document provides much more detail on the proposed equations for star rating.