Key changes to Australia’s building code are set to go ahead after the nation’s building ministers agreed to the changes.

And the ministers have agreed to a Commonwealth Government proposal to pause further Code changes until at least the middle of 2029.

At the Building Ministers Meeting held on Wednesday, Commonwealth, State and Territory building ministers from across Australia reached agreement on important matters relating to the National Construction Code (NCC).

Specifically, the ministers agreed that:

  • Key changes which have been proposed as part of the 2025 update of the Code (NCC 2025) will go ahead (see below)
  • Beyond NCC 2025, there will be a four-year pause on further non-essential Code changes until at least the expiration of the National Housing Accord period in June 2029.
  • During the pause, the Code and its updating processes will be reviewed in order to ensure that the NCC does not create undue cost or compliance burden upon new home delivery.

 

Key changes going ahead, pulling back on other changes

In their meeting, ministers agreed that several changes which have been proposed as part of NCC 2025 will go ahead.

These include:

  • Implementing the next stage of tighter energy efficiency requirements for commercial buildings.
  • Changes to reduce water ingress into apartments and commercial buildings.
  • Additional changes to further reduce the risk of condensation in new buildings.
  • Tighter fire safety requirements for carparks in commercial and apartment buildings.

Of the changes to be introduced, the most significant involves implementing the next stage of tighter energy efficiency requirements for commercial buildings.

Amendments in this area aim to ensure that commercial buildings which are constructed under NCC 2025 will be ready to accommodate a net zero and all-electric future.

Changes include amended thermal performance requirements to ensure adequate modelling of heat loss and gain; requirements for on-site energy generation such as solar panels; and provision to ensure that any gas appliance which are used will be able to be replaced with electric appliances at their end of life.

In relation to waterproofing, the changes aim to reduce the incidence of water leakages which flow into apartments from the outside of buildings from horizontal surfaces such as balconies, flat roofs and podiums.

The changes will require a slight fall in substrate for surfaces which consist of concrete or cement sheeting to ensure that water drains away from inside areas.

In relation to condensation, new and relatively modest changes will build on previous Code amendments to further reduce the risk of condensation in new buildings.

The changes represent a response to industry concerns about the need to avoid creating condensation as the airtightness and thermal performance of buildings continues to improve.

Specific provisions will vary according to different climate zones.

Finally, changes in respect of fire safety for commercial and multi-residential carparks will involve an increased fire resistance level, sprinkler protection in all car parks which cater for 40 or more vehicles and sprinkler protection for any car stackers which stack two vehicles vertically within the one car parking space.

However, ministers agreed that there would be no further changes to residential housing in NCC 2025 outside of essential quality and safety changes (such as the condensation and waterproofing changes referred to above).

Accordingly:

  • Proposed voluntary embodied carbon provisions will be published as an ABCB guidance document and will not be included in NCC 2025; and
  • Proposed EV charging provisions and residential energy efficiency changes will not be introduced at this time.

NCC 2025 will be published by 1 February 2026. States and territories can consider adoption from 1 May 2026.

As is always the case with NCC updates, the adoption of NCC 2025 will be a matter for each jurisdiction.

 

Pause and review

The ministers also agreed with the Commonwealth Government’s plans announced in August to pause further additional Code changes whilst the five-year National Housing Accord is in place.

(Under the Accord, Commonwealth and state governments have agreed to a target of delivering 1.2 million new homes over the five years from 1 July 2024.)

For this reason, once NCC 2025 has been finalised, no further changes will be made to the code except for essential quality and safety measures until at least June 30 2029.

The objective is to provide the building industry with greater certainty and to therefore assist in accelerating the delivery of new homes during the Accord period.

As a result, the previously scheduled 2028 Code update will not occur.

During the pause, ministers have agreed to review the Code and the current three-year updating cycle.

The review aims to ensure that the NCC is modernized and does not create an undue impediment on new home delivery.

In particular, ministers have agreed to consider how to:

  • Streamline and use AI to improve NCC usability
  • Reduce the regulatory burden on the building and construction industry
  • Remove barriers to the uptake of modern methods of construction
  • Improve how code provisions are developed by the ABCB and consider the appropriate frequency of future NCC updates.

Building industry lobby groups welcomed agreement.

“We are pleased that the Albanese Government has listened to the concerns of industry on the mounting cost of NCC reform which adds tens of thousands of dollars to new house prices and holds back innovation,” said Oscar Slanley, National President of the Urban Development Institute of Australia.

“Pausing the Code gives industry the opportunity to concentrate on what matters most — improving construction efficiency and driving innovation. By reducing regulatory uncertainty, this decision will help industry deliver more homes, more affordably, and more quickly.”

“The Government is now well positioned to use these four years to invest in enabling infrastructure as an essential pillar of building homes faster.

“We look forward to continuing our close collaboration with the Federal Government to ensure these measures deliver more homes for all Australians.”

Housing Industry Association Managing Director Jocelyn Martin agrees.

“The Housing Industry Association (HIA) welcomes commitments made today by Commonwealth and State and Territory Building Minsters in providing decisive action to pause non-essential building code changes and to reset how the NCC is developed and implemented going forward,” Martin said.

 

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