Here’s what pausing the National Construction Code means for builders and home buyers
- Written by: Ehsan Noroozinejad, Senior Researcher and Sustainable Future Lead, Urban Transformations Research Centre, Western Sydney University
Following last week’s economic reform roundtable in Canberra, the federal government has announced it will be pausing changes to the National Construction Code until mid-2029.
The code is the national rulebook for how we design and build. It sets minimum standards for safety, health, amenity, accessibility and sustainability. It’s updated on a cycle (typically every three years) and states and territories adopt it.
The aim of the pause is to give builders a stable rulebook, so more homes can be approved and built faster. Importantly, essential safety and quality updates can still go ahead during the pause.
Here’s what the changes mean – and what the government will have to get right to make the most of the pause.
What’s actually being paused?
The latest version of the National Construction Code is from 2022. The Australian Building Codes Board, which develops the code, had already flagged the 2025 edition would not follow the usual timetable of being previewed in February and commencing in May.
The 2025 version is being finalised. When this is complete, the pause means no new residential code changes will be added before 2029, other than urgent safety or quality updates.
The federal government has confirmed existing strong standards, such as 7-star energy efficiency, will be maintained.
The board is also currently consulting on a voluntary certification scheme for modern, prefabricated methods of construction. This scheme would reduce the risk of non-compliant components and manufacturing in Australia and forms part of the exclusions already announced by the federal government.
The problem to solve
The government argues a stable period will cut red tape so builders spend more time on site and less time re-learning rules.
Housing approvals and delivery have been too slow for years. Each code change can add new paperwork, new checks, and new training requirements. Frequent changes can make it harder for small builders to keep up.
Many in the construction industry welcomed the pause. A stable code can reduce confusion, reduce the need for re-designs, and help hold prices steady. That can support supply.
Read more: Australia is forecast to fall 262,000 homes short of its housing target. We need bold action
The impact on building sites
What will the pause actually mean for builders on the ground? Here are some of the possible impacts.
Faster approvals: when rules change halfway through the design and approval stage – “mid-stream” – designers often have to change their drawings and re-submit them. The pause means less redoing and reloading, so plans already underway can be approved sooner.
Easier compliance: stable rules mean designers and certifiers can standardise details and templates on home design without chasing a moving target. That should cut some of the back-and-forth and reduce errors.
Lowering some costs: stability helps suppliers and builders plan. It may ease some cost pressure caused by repeated product changes or the need for re-training. However, it won’t address land costs, labour shortages or financing stress.
Preserving quality and safety: the pause does not stop urgent fixes. Regulators can still act on safety or serious quality issues.
Preserving energy and comfort standards: current minimums remain. New improvements in performance are delayed, but not reversed. Homes approved under today’s rules must still meet today’s standards.
Making the most of the pause
Pausing the code will only help if we use the time well. Here are practical steps that can speed up building, without lowering standards.
1. Create one national adoption timetable
States and territories sometimes adopt the code at different times or with different tweaks. A single timetable for future editions (and any urgent safety or quality amendments) and fewer variations between jurisdictions would reduce confusion for builders who work across state borders.
2. Make the most of technology
The government has talked about using better tech – such as artificial intelligence – to help navigate the 2,000-page code. Such work should be focused on simple tools builders actually use.
3. Consider approval time or fee incentives for designs that go beyond minimums
Systems could be created to incentivise better energy performance, accessible designs or proven low-defect systems, without forcing new rules mid-cycle.
4. Low-friction fixes for known pain points
If, for example, a balcony waterproofing detail keeps failing, The Australian Building Codes Board could publish a national “fix sheet” and allow it as a “deemed-to-satisfy” option, meaning a pre-approved solution that automatically meets the code when followed exactly. That’s a quality gain that doesn’t need a full code rewrite.
5. Clear, “ready-to-use” pathways for modern methods of construction such as prefab and modular
Modern, offsite construction methods can cut build time and defects. The Australian Building Codes Board’s proposed voluntary certification for manufacturers should be simple, trusted and fast.
Read more: A prefab building revolution can help resolve both the climate and housing crises
Help for first-home buyers
In other housing news this week, the federal government also announced it would bring forward the start date of its expanded First Homebuyer Guarantee to October 1.
This will allow all first-home buyers to purchase a property with just a 5% deposit, without having to pay lenders mortgage insurance.
This move could increase demand for new homes. On its own, that can raise prices if supply can’t respond and only makes sense if more homes can be delivered quickly and safely. This measure needs to work together with any streamlining of the construction code.
Pausing the code is a pragmatic move. A calmer rulebook should help approvals flow, reduce re-work, and give builders certainty. But a pause is not a cure-all. It will not fix land costs, trade shortages, or interest rates.
And it must not become a holiday from quality. Regulators should use the safety and quality exemptions whenever needed.
Authors: Ehsan Noroozinejad, Senior Researcher and Sustainable Future Lead, Urban Transformations Research Centre, Western Sydney University
Daily Bulletin
