"Mutually Beneficial Plan: Government Halts Building Code Updates to Accelerate Housing Availability"

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The federal government says it has the balance right between sustainability and energy standards and removing red tape to speed up building approvals.

A suite of changes to construction guidelines aimed at reducing delays comes after Treasurer Jim Chalmers confirmed alterations to the national code at the conclusion to last week’s productivity summit.

Under the plan, updates to the 2000-page construction code will be frozen until mid-2029 once the 2025 changes are finalised. The code normally updates every three years.

The freeze excludes essential safety and quality changes and maintains the strong residential standards adopted in 2022, including 7-star energy efficiency.

The government plans to utilize the pause to simplify the code. This involves enhancing its functionality with artificial intelligence, eliminating obstacles, promoting contemporary construction techniques like prefab and modular housing, and refining the process of developing code enhancements.

A man in a suit speaks at a roundtable conference

Jim Chalmers confirmed alterations to the national code at last week’s productivity summit. Source: AAP / Mick Tsikas

Removing building red tape to speed up housing construction won’t cut corners on standards, Housing Minister Clare O’Neil said.

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

The government will also fast-track environmental assessment applications for more than 26,000 homes by creating a specialised environment department team, prioritising robust development applications.

It is also looking to use AI tools to simplify and hasten approvals.

“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,” Housing Industry Association director Jocelyn Martin said.

Environment Minister Murray Watt said fast-tracked projects will still need to meet all environmental requirements, but developers will be incentivised to provide required information up front.

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

An integral part of the changes is eliminating barriers for superannuation investments in new housing and collaborating with states and territories to expedite planning, zoning, and approvals.

A woman in a yellow vest and white construction hat speaks

“We want builders on site, not filling in forms to get their approval,” Housing Minister Clare O’Neil said. Source: AAP / Joel Carrett

At the government’s Economic Reform Roundtable in Canberra last week, a simplification and tidy-up of the code attracted broad support, with few disputing the need for standards that work together better and are easier to navigate.

As a “floor” for quality and performance, some saw it as a necessary tool to keep the next generation of homes safe, comfortable and not wasting energy.

The Property Council of Australia’s Mike Zorbas said the measures will help unlock tens of thousands of new homes.

“This is a win-win roadmap to better housing supply,” he said.

Master Builders Australia chief executive Denita Wawn applauded the government, saying the constant churn of regulatory change had added pressure to a complex and costly system.

Australian Council of Social Service chief executive Cassandra Goldie, at the summit, warned a construction code freeze could mean households least able to afford home retrofits for a changing climate and energy future could lose out if reforms miss the mark.