Mark Vender
Opposition leader Peter Dutton has unveiled a suite of policies aimed at boosting housing supply in Australia, including a commitment to freeze changes to the National Construction Code for 10 years. This would reduce costs by halting further requirements for energy efficiency, safety and amenity in new houses.
Certainty for builders
“At a time of high inflation, the government’s changes to the NCC have added red tape and increased the compliance burden for new housing projects, driving up costs for purchasers,” reads the Coalition statement.
“The Coalition’s freeze will provide certainty to the industry and let builders get on with the job of building homes for Australians. We further commit to working with industry to review the government’s changes to the NCC and identify options to further reduce red tape and bring down costs for consumers.”
The statement references a claim that the lifting of minimum energy efficiency standards from 6 to 7 NatHERS stars in NCC 2022 would add $60,000 to the cost of a new home – a figure that industry groups have found to be inflated. The Australian Glass and Window Association has estimated the cost as $5,000. Analysis undertaken by the Australian Building Codes Board (ABCB) found an average cost of about $2,200 in 2021 terms to improve from 6 to 7 stars.
The National Construction Code is revised every three years in consultation with state and territory building ministers. The energy efficiency improvements it prescribes are in line with Australia’s Trajectory for Low Energy Buildings, a key initiative to address Australia’s 40 per cent energy productivity improvement target by 2030 under the National Energy Productivity Plan. The Coalition has not indicated how a freeze on the NCC would impact this target.
Industry reaction
The Coalition proposal mirrors a similar announcement in South Australia in August, which was criticised by major industry groups. Once again, Master Builders Australia and HIA have applauded the announcement.
Other key stakeholders, including the Property Council of Australia, have been more circumspect.
“We have long supported the regular review and interstate coordination benefits of the National Construction Code,” wrote Property Council CEO Mike Zorbas in a statement on the organisation’s website.
“The most important consideration for any future government is that the ABCB has the resources needed to conduct comprehensive regulatory impact statements and to do its work coordinating state and territories well. That is by far the best way to govern the essential guidebook for Australia’s built environment.”
The Coalition package also includes a Housing Infrastructure Program, which will enable infrastructure like water, power, sewerage and access roads for greenfield sites. The Coalition says it will commit $5 billion to grants and concessional loans that will unlock up to 500,000 homes to be delivered more quickly.
Photo by Antoni Shkraba at Pexels
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