Australia’s National Construction Code will be frozen until 2029 once changes associated with the 2025 updating cycle have been finalised.

And the Government has announced plans to fast-track approvals for more new homes.

On the weekend, Commonwealth Housing Minister Claire O’Neill and Environment Minister Murray Watt announced a series of measures which are designed to speed up delivery of new housing.

This follows the Government’s National Economic Roundtable that was held last week.

In particular, the Government has announced:

• A four-year freeze on the changes to the National Construction Code (except for essential safety and quality changes) that will be applied once changes to 2025 update of the Code are finalised.
• An intention to examine the Code and to identify ways in which it could be simplified.
• Fast tracking of decisions in relation to 26,000 homes which are currently undergoing federal approval processes.
• An intention to explore other measures to unlock more new housing. These include unlocking more superannuation investment in new housing, accelerating uptake of modern methods of construction and working with states and territories to address barriers to new housing delivery.

The announcement involves significant changes surrounding the National Construction Code (NCC).

The Code is Australia’s primary set of technical design and construction provisions for buildings.

It sets out minimum requirements in respect of the health, safety, amenity, accessibility and sustainability which new buildings need to meet.

As things stand, periodic updates to the Code occur on a three-year cycle.

However, there has been a push by some within industry to pause further changes. This follows a massive update which occurred in 2022 involving tighter energy efficiency requirements and the introduction of accessible housing requirements into the Code for the first time.

Under the announcement, the Code will be frozen for at least four years once proposed changes in the current (2025) updating cycle have been finalised.

This means that the next round of changes will not occur until the end of the National Housing Accord period in 2029 at the earliest.

The pause will not include changes which are essential for quality and safety.

In addition, the aforementioned changes that were made as part of the 2022 update of the Code will be maintained.

While this pause is underway, the government will undertake work to streamline the Code – which currently runs to 2,000 pages.

This will occur through further consultation with stakeholders.

It will include examining how to:

• Streamline and use AI to improve the Code’s useability.
• Remove barriers to the uptake of modern methods of construction, including prefabrication and modular housing.
• Improve how code provisions are developed by the Australian Building Codes Board (ABCB) and consider the appropriate cycle time of future NCC updates.

“We’re re pausing the changes to the National Construction Code for a four-year period,” O’Neill said.

“This will give our builders a chance to take a breath after what were very significant changes in the 2022 Code.

“It will give us also the opportunity to have a look at this document that has become much too complicated and difficult to use.”

In addition, the Government has also announced the fast-tracking of assessment on more than 26,000 homes which are currently undergoing assessment under the Environmental Protection and Biodiversity Conservation Act.

A strike team will be established with the Department of Climate Change, Energy, the Environment and Water to accelerate the assessment of the homes.

The Government will also ensure better access to existing pathways for rapid assessment for new applications.

New Ministerial guidelines will prioritise robust development applications that provide required information up-front.

Meanwhile the Government says it will explore further action on reform ideas which have been raised during the roundtable.

This includes reducing barriers to superannuation investment in new housing supply, encouraging further uptake of modern methods of construction and working with states and territories to accelerate delivery of planning, zoning, approvals and investment in enabling infrastructure.

The changes which have been announced are considerably more modest compared with those which had been taken to the May election by the Opposition Liberal/National Coalition earlier this year.

The Coalition had said it would freeze the Code for ten years if it won office.

Building industry lobby groups welcomed the latest announcement.

In a statement, Master Builders Australia CEO Denita Wawn commended the Government’s action.

Wawn said that pausing non-essential changes for the duration of the National Housing Accord period will provide more industry confidence and clarity which is needed to deliver as many new homes as possible.

“Master Builders Australia applauds the government for taking quick, decisive action to address excessive red tape and support the industry to build more homes for Aussies,” Wawn said.

“Master Builders has been very vocal about the need for a pause to the National Construction Code throughout the National Housing Accord period, and we are glad to see the government has been listening.

“The constant churn of regulatory change has added pressure to an already complex and costly system, so a focus on fixing the system first is a welcome relief.

“Our members tell us every day about the frustrations that come with these pressures, how build times take too long, and costs get too high.

“A pause to the NCC will give the industry the time it needs to adjust and to get on with building without being crippled by unnecessary red tape. The announcement today will mean that builders around the country can operate in safe, productive worksites, maintaining high standards across the board.

“Listening to industry and supporting our calls in these areas is a big step in the right direction, and Master Builders looks forward to continuing our work with the government to take further action on boosting productivity.”

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