Could rethinking compliance deliver more affordable homes without sacrificing quality? New Zealand thinks so. Here’s why Australian builders should pay attention.
What’s Happening in New Zealand?
New Zealand is making a bold move to shake up how builders meet energy efficiency targets. The Ministry of Business, Innovation and Employment (MBIE) has announced it will phase out its prescriptive insulation “Schedule Method” and encourage designers and builders to use performance-based approaches that consider the home as a whole.
The reason? Prescriptive pathways often forced builders to add unnecessary layers of materials—costing clients thousands—without delivering proportional benefits. By giving builders flexibility and using calculation or modelling tools, MBIE estimates homeowners could save up to NZ$15,000 per home, all while meeting the same performance targets.
The Bigger Question: Are We Over-Engineering Homes in Australia?
This move by our neighbours raises an important question for Australia: where else might our compliance settings be adding cost without real value? It’s not just about thermal performance. Across the board, we’ve seen layers of standards and requirements stack up over time—each introduced with good intentions, but rarely reviewed for cost-benefit once implemented.
Here are some areas worth reflecting on:
- Material Specifications
Are rigid material standards limiting innovation and cost-effective alternatives? Sometimes a prescribed material achieves compliance on paper but adds complexity or cost without improving real-world performance. - Acoustic or Fire Provisions
In some cases, rules intended for high-density urban living filter down into contexts where they add little to occupant safety or comfort—yet increase build cost. - Water Efficiency and Sustainability Measures
While no one argues against sustainable outcomes, are there more flexible ways to achieve them? Could performance modelling offer the same environmental benefits without mandating specific fixtures or systems? - Structural Overlays and Redundancies
Engineering and structural codes are critical, but do some compliance layers add unnecessary duplication, particularly for low-risk builds in low-risk zones?
Same Outcomes, Smarter Pathways
The key theme from New Zealand’s reforms isn’t lowering standards—it’s changing the pathway to achieve them. By moving from “check-the-box” rules to holistic performance assessments, builders can trade off elements (e.g., better windows balanced with modest wall insulation) to hit the same targets without over-engineering.
The benefits?
- Lower Costs Without Lowering Quality
Flexibility lets builders design smarter, not just heavier. - Encourages Innovation
New tools and materials enter the market faster when compliance isn’t locked into prescriptive pathways. - Fairness Across Climates and Contexts
Australia is vast and varied. Should every home be treated as if it sits in the harshest conditions?
What’s Holding Us Back?
Performance modelling tools like NatHERS, FirstRate5, and BERS Pro are already part of Australia’s compliance ecosystem, yet uptake among smaller builders remains patchy. Why? Many perceive them as expensive or complex compared to “safe” prescriptive methods. In reality, New Zealand’s experience suggests a little extra design effort upfront could translate into major material savings down the track.
The TGB Take
This isn’t about cutting corners. It’s about questioning whether the path we’ve taken to deliver high-performing homes is always the smartest one. For builders balancing client budgets with compliance obligations, the question is clear:
- Are our current rules driving better homes—or just more expensive ones?
- Could performance-based approaches replace some of the prescriptive thinking that adds cost without benefit?
- What would it take to give every builder—not just the majors—the tools and confidence to adopt these smarter pathways?
As the industry faces affordability challenges and regulatory changes in 2025 and beyond, these are conversations we need to have now.mile (or 1,200km of backroads). We’ll be sharing updates before, during, and after the rally to keep you connected to this incredible journey.
0 Comments