How to Set Up Your Own Smart Home Hub with Home Assistant, Step by Step

Radios and coordinators for Zigbee and Thread

Unlike Wi-Fi accessories that talk directly through your home router, low-power mesh devices require a radio coordinator. The Home Assistant Green does not have integrated wireless radios, so adding Zigbee or Thread support requires an external USB adapter.

The Home Assistant Connect ZBT-1 (formerly SkyConnect) connects via USB 2.0. It features a Silicon Labs EFR32MG21 multiprotocol radio communicating over the 2.4 GHz band. This dongle gives your hub Zigbee 3.0 support and Thread border router capability. When plugging a USB radio into the hub, using a short USB extension cable reduces radio interference caused by the hub's internal electronics.

What Australian electrical and rental rules apply?

Before connecting devices across your home, consider local electrical safety standards and tenancy agreements. Australian homes run on 230 V, 50 Hz mains electricity using Type I AS/NZS 3112 sockets.

Electrical licensing and safety rules

In Australia, fixed electrical wiring cannot be modified without a trade licence. State laws such as Victoria's Electricity Safety Act 1998 and Queensland's Electrical Safety Act 2002 prohibit unlicensed individuals from hardwiring switches, relays, or power points. Energy Safe Victoria and the Electrical Safety Office Queensland state that fixed wiring must be done by a licensed electrician.

Plug-in gear like the Home Assistant Green uses an external 12V DC power supply. It draws approximately 1.7 W at idle and roughly 3 W under load. Because it plugs into an existing standard socket, it requires no electrical licensing. When sourcing third-party power adapters or smart accessories, ensure they carry the Regulatory Compliance Mark (RCM). The Electrical Equipment Safety System (EESS) and the Australian Communications and Media Authority (ACMA) confirm the RCM proves compliance with safety and radio rules.

For details on what you can legally install without a contractor, read our guide on what smart home electrical work you can legally do yourself in Australia.

Renting and strata considerations

Renters can use Home Assistant without risking their bond. Under the NSW Residential Tenancies Act 2010 and associated regulations outlined by NSW Fair Trading, tenants must not make hardwired or structural modifications without written landlord consent. However, minor alterations that do not alter fixtures are permitted.

A setup based on a plug-in hub, smart plug adaptors, and battery-operated Zigbee sensors requires no drilling or wiring. When a lease ends, you can unplug the hub and pack away sensors without leaving marks.

How do you set up Home Assistant step by step?

Setting up the hardware and initial software takes roughly twenty minutes. Complete these steps on your local network.

Step 1: Connect your hub hardware

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Place your hub near your main router or a network switch. A wired Ethernet connection is necessary for reliable communication.

1. Connect an Ethernet cable from your network router to the Gigabit Ethernet port on the hub.
2. If you use a USB coordinator like the Home Assistant Connect ZBT-1, plug it into one of the USB 2.0 ports using an extension lead.
3. Insert the barrel connector of the included power supply into the 12V DC input port.
4. Plug the adapter into an Australian 240V wall socket and switch the socket on.

The activity LEDs will illuminate as Home Assistant OS initialises.

Step 2: Complete the onboarding wizard

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Allow two to five minutes for the operating system to complete its first boot.

1. Open a web browser on a computer or mobile phone connected to the same local network.
2. Enter the local hostname homeassistant.local followed by port 8123 into your browser address bar.
3. If your router does not resolve local hostnames, check your router settings for the assigned IP address and access port 8123 directly.
4. Click Create Account.
5. Enter your name, choose a username, and assign a strong password.
6. Set your home location, currency (AUD), and metric measurement units (Celsius, metres).
7. Click Next to finish account creation.

Step 3: Add initial integrations and configure radios

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During onboarding, Home Assistant scans your local network to discover compatible smart gear automatically.

1. Review the auto-discovered devices shown on screen, such as smart televisions, media streamers, or network storage, and click Finish.
2. Go to Settings > Devices & Services.
3. If using the Home Assistant Connect ZBT-1, the hub automatically detects the Silicon Labs hardware and prompts you to configure Zigbee Home Automation (ZHA).
4. Select Add ZHA and confirm the serial port settings.
5. Keep the network configuration defaults to form a new Zigbee network.

How do you integrate existing bridges and Wi-Fi devices?

You do not need to replace your current smart accessories to use Home Assistant. The platform supports bridges from major brands.

Using dedicated lighting bridges

If you already own an ecosystem of smart bulbs, keeping their proprietary bridge can reduce the configuration workload on your primary hub. For example, the Philips Hue Bridge (V2) handles colour-changing lights and light strips across its own dedicated Zigbee radio.