Australia seeks to achieve a 40% boost in energy productivity by 2030 from its 2015 baseline. Despite several emerging Policy Instruments (PIs) aimed at enhancing the energy efficiency of existing residential buildings, Australia's progress falls behind other developed economies due to deficiencies in these PIs. Therefore, this chapter reviews eight current federal-level PIs in Australia aimed at energy retrofitting residential buildings to identify prevailing deficiencies and recommend potential policy improvements. The findings reveal the need for a national plan to increase the renovation/retrofitting rate, a single national star rating system, research and innovation to integrate embodied emissions into the star rating system, and a mandatory disclosure for real estate transactions and periodic updates. The proposed financial mechanisms involve fossil fuel taxes to fund rebates for renewable energy sources. Financial incentives should be paired with educational programs and include a plan to gradually diminish incentives as the retrofit market matures. Financial incentives should target low-income groups by offering capital cost reductions rather than tax rebates. Moreover, contributing to knowledge, Table 4 offers a compendium of potential policy improvements to help Australian policymakers identify future initiatives for achieving national emission reduction targets for existing residential buildings. This study also serves as a guide for researchers to identify future research areas in policy development within this domain.