Housing industry hails building code pause as game-changer

Ministers' reforms promise faster builds and fewer delays

Housing industry hails building code pause as game-changer

News

By Mina Martin

Australia’s building ministers have agreed to a pause on major changes to the National Construction Code (NCC), in a move aimed at cutting red tape and fast-tracking new home construction.

The decision, finalised at the Building Ministers’ Meeting this week, follows the federal government’s August housing roundtable, which called for urgent action to boost supply, realestate.com.au reported.

NCC changes paused until mid-2029

Under the agreement, no new housing-related NCC changes will take effect until mid-2029, except for a few “essential quality and safety measures.” These include:

  • Improved water management in commercial and apartment buildings
  • Enhanced carpark fire safety standards
  • Commercial energy efficiency reforms
  • Condensation mitigation measures

This means planned requirements for home EV chargers and new residential energy efficiency upgrades have been shelved, with the existing 7-star energy efficiency standard from NCC 2022 to remain in place.

The NCC 2025 edition will be published by Feb. 1, and states can choose to adopt it from May 1. Implementation, however, will vary by jurisdiction – for example, Tasmania has already announced a pause on certain NCC measures.

AI and modern construction to shape future codes

Ministers also agreed to modernise how the Australian Building Codes Board (ABCB) develops and manages future codes. The work plan includes:

  • Using AI to improve accessibility and usability of the NCC
  • Reducing unnecessary regulatory burdens
  • Supporting modern methods of construction (MMC)
  • Overhauling the way the ABCB drafts code provisions

These updates aim to make future versions of the NCC clearer, simpler and more aligned with housing supply goals, paving the way for faster, tech-driven construction outcomes.

Industry backs decisive reform

The housing sector has strongly welcomed the decision. Housing Industry Association (HIA) managing director Jocelyn Martin (pictured left) said the pause represents “decisive action to pause non-essential building code changes and to reset how the NCC is developed and implemented going forward.”

“The burden of excessive regulation related to building, planning, and approvals is adding significant cost, complexity and delays which is impacting our industry’s ability to supply the homes we need,” Martin said in a media release.

She said the commitments deliver “greater stability and certainty to support the delivery of more homes faster.”

Martin added that HIA had outlined a detailed plan to reform how code provisions are developed and remove barriers to MMC adoption, a message reflected in ministers’ actions.

“The decision to focus NCC 2025 changes primarily on those considered essential and targeted at non-residential buildings strikes a pragmatic balance and now provides industry with a clear path to prepare and adapt ahead of their adoption in May next year,” she said.

Martin also noted that beyond code reform, broader housing initiatives were already showing results, with “over 4,600 homes approved since the August roundtable” through fast-tracked environmental assessments and the specialist housing strike team.

Confidence boost for builders and developers

Property Council of Australia chief executive Mike Zorbas (pictured right) said the changes give developers greater certainty to deliver “city-shaping assets.”

“The Building Ministers’ endorsement recognises the innovation in Australian commercial projects and will support the continued advancement of quality, safety, and sustainability standards,” Zorbas said.

“At the same time, the brief pause on further changes to the NCC on residential construction provides the opportunity to simplify an otherwise complex code, ensure proper state buy-in and make building new homes easier.”

Master Builders Australia CEO Denita Wawn agreed, saying the pause provides essential relief to builders facing mounting regulatory pressure.

“Builders need this certainty and can’t afford to be held back by unnecessary red tape if Australia has any hope of meeting our housing targets,” Wawn said.

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