Building code decision welcomed as a win for industry and buyers 

Following the three-day economic reform roundtable, the federal government announced a big change that has been the subject of hot debate in recent years. 

The federal government has announced it will freeze further updates to the National Construction Code (NCC) until the end of the National Housing Accord in mid-2029. 

The announcement is part of a series of commitments the federal government said will help to boost housing supply by speeding up home building and removing barriers that could cause delays. 

Housing minister Clare O’Neil made the announcement on Sunday, 24 August, noting the government would act on five reform areas to build more homes quickly. This includes pausing the NCC – a topic heavily discussed in the lead-up to and during the recent economic reform roundtable. 

First introduced in 2011, the National Construction Code is a nearly 2000‑page document setting minimum standards for new buildings, covering everything from design to sustainability. The code is usually updated every three years.

In 2022, it introduced a set of new standards, which some builders argue have added costs and delays to construction projects.

According to the government, the NCC pause will exclude safety and quality changes and will maintain the residential standards introduced in 2022, including the 7-star energy efficiency requirement.  

After finalising NCC 2025, the government will work with states and territories to pause further residential changes until the end of the National Housing Accord in June 2029. The next round of changes will follow at the end of this period. 

While the pause is in place, the government says it will focus on streamlining the code. This includes examining how artificial intelligence could be used to improve usability, removing barriers to the uptake of modern construction methods, and improving how provisions are developed by the Australian Building Codes Board. 

“It’s too hard to build a home in this country. We want builders on site, not filling in forms to get their approval,” Ms O’Neil said. 

“In the middle of a housing crisis a generation in the making, we want builders building good quality homes of the future – not figuring out how to incorporate another set of rules.” 

Clearing the environmental protection backlog 

Another priority for the government is fast-tracking more than 26,000 applications currently under assessment through the Environment Protection and Biodiversity Conservation (EPBC) Act. 

The government says this will involve three steps: 

• Establishing a new team within the department of climate change, energy, the environment and water to accelerate assessments. 

• Improving access to the existing EPBC assessment pathway for new applications. 

• Piloting the use of AI to speed up assessments and approvals. 

Minister for environment and water Murray Watt said the fast-tracked projects will still be required to meet all environmental requirements, but the approach will incentivise developers to provide all necessary information upfront. 

“This approach will ensure strong national environmental protections, while also leading to faster decision making, more certainty for industry and more homes for Australians,” Mr Watt said. 

Industry reaction 

Following the announcement, several housing industry bodies welcomed the measures. 

Housing Industry Association managing director Jocelyn Martin said there was broad agreement at the economic reform roundtable that regulatory barriers under the federal government’s control could be addressed immediately. 

She supported both the NCC pause and the move to fast-track EPBC assessments, as well as the introduction of AI to help reduce delays. 

“Piloting an AI program to help users navigate the volumes of codes and standards will add significant value, allowing more time to build homes and potentially reducing paperwork,” Ms Martin said. 

“Delivering housing in Australia is complex and the federal, state and territory governments need to work together to ensure these changes make a difference. All layers of government need to be committed to housing supply and affordability.” 

The Property Council of Australia said the announcements will “help unlock tens of thousands of new homes across the country”. 

“This is a win-win roadmap to better housing supply,” chief executive Mike Zorbas said. 

“At the same time, these changes will ensure a regular improvement cycle for vital safety, quality and sustainability upgrades to our housing that are consistently implemented by all states and are cost-effective at the point of construction and through the life cycle of the home.”  

Mr Zorbas also noted that the lead-up to the economic reform roundtable showed consensus can be found when addressing industry challenges. 

“Low-cost, light-touch productivity boosts have been staring us in the face, and we welcome the government’s initiative in consulting with industry, achieving consensus and driving necessary change,” he said. 

The federal government also announced additional measures drawn from ideas raised at the roundtable. These include: 

• Reducing barriers to superannuation investment in new housing. 

• Encouraging greater uptake of modern methods of construction, including prefabricated housing and other innovative building practices. 

• Working with states and territories to speed up planning, zoning, approvals and investment in enabling infrastructure. 

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