The Commonwealth, State, and Territory Building Ministers recently agreed to a significant reform of the National Construction Code (NCC), notably endorsing a pause on further residential changes until mid-2029, while focusing 2025 updates primarily on non-residential buildings.
This decision aims to simplify the NCC, boost industry confidence, and support the supply of new homes amid ongoing housing challenges.
At their October 2025 meeting, Building Ministers resolved to finalise the NCC 2025 edition by February 2026, with jurisdictions able to consider adoption from May 1.
The code revisions highlight improvements for commercial and multi-unit buildings, including enhanced water ingress management, fire safety in car parks, mandatory onsite solar systems, and condensation mitigation measures.
Residential energy-efficiency and electric vehicle charging provisions will largely be deferred or transitioned into voluntary guidance to avoid overburdening the sector in the immediate term.
The pause on residential changes is viewed as a constructive step to improve productivity in home construction while providing the industry with stability and certainty.
Builders can thus invest in workforce development and innovation without the disruption of continuous regulatory changes.
The exemption allowing only essential quality and safety-related updates to proceed means non-urgent alterations are deferred to future code editions.
This recalibration of the NCC is intended to create a streamlined, fit-for-purpose framework that supports Australia’s construction industry in building more homes faster and more efficiently.
Ministers also acknowledged the opportunity to modernise the NCC development process, including using artificial intelligence to improve usability for tradespeople, small businesses, and households, as well as removing barriers to modern methods of construction such as prefabrication and modular building.
The Property Council of Australia’s Chief Executive, Mike Zorbas, remarked that the Building Ministers’ endorsement “recognises the innovation in Australian commercial projects and will support the continued advancement of quality, safety and sustainability standards”.
He highlighted the importance of national consistency in regulatory approaches, stating: “Collaboration with governments and industry will be vital in ensuring the recalibration of the NCC works for all asset classes and is fit-for-purpose and universally adopted.”
Zorbas also welcomed the brief pause on residential changes as an opportunity to simplify the code and gain proper state-level buy-in to facilitate easier home building.
Echoing the focus on certainty and pragmatism, Housing Industry Association Managing Director Jocelyn Martin welcomed the ministers’ commitments to pause non-essential NCC changes and reset the code’s development approach.
Martin noted that the pause would reduce the burden of “excessive regulation related to building, planning and approvals”, which she says currently adds costs, complexity, and delays.
She expressed optimism that focusing 2025 changes on “essential and targeted” reforms for non-residential buildings “strikes a pragmatic balance” allowing industry to prepare for adoption next year.
Martin further underlined that the NCC overhaul will consider “greater adoption of AI and modern methods of construction (MMC)”, paving the way for efficiencies in housing delivery.
She acknowledged recent progress outside the NCC reforms as well, citing streamlined environmental approvals and specialist government teams supporting housing supply, with over 4,600 homes approved since August.
While the reforms focus on stabilising the regulatory environment, building ministers also see them as part of a broader strategy to address Australia’s housing supply crisis, which requires multiple coordinated policy measures.
The effort to streamline and harmonise the NCC across jurisdictions seeks to alleviate complexity and compliance costs historically caused by inconsistent state and territory approaches.
Overall, the Building Ministers’ actions on the NCC reflect a balanced approach intended to facilitate improved building quality, safety, sustainability, and productivity, benefiting developers, industry stakeholders, and ultimately homeowners and businesses nationwide.
The reforms aim to create a clearer, more consistent code that encourages innovation and efficiency while supporting the industry with the stability necessary to meet Australia’s pressing housing needs.
