Australia’s peak residential building body has called for a sweeping overhaul of the National Construction Code (NCC), warning that decades of regulatory expansion have made the system increasingly difficult for builders to navigate and are contributing to slower housing delivery.

The Housing Industry Association (HIA) has lodged a detailed submission to the current consultation on Streamlining and Modernising the NCC, arguing that the code has evolved far beyond its original purpose and now risks acting as a barrier to housing supply.

According to the association, simplifying the code, reducing regulatory overlap and creating clearer pathways for innovation will be critical if Australia hopes to deliver enough homes to meet future demand.

The call comes at a time when governments across the country are attempting to accelerate housing supply, including the national ambition to deliver 1.2 million new homes over five years under the National Housing Accord.

A Code That Has Grown Far Beyond Its Origins

The National Construction Code was introduced to establish consistent minimum standards for building safety, structural performance and fire protection across Australia. Over time, however, the code has expanded significantly as governments and policymakers have used it to address a broader range of objectives.

In its submission, the HIA argues that this expansion has created a system that is far more complex than originally intended.

According to the association, the NCC is now more than eight times longer than when it was first introduced and references nearly double the number of supporting Australian Standards.

HIA Executive Director of Building Policy Shane Keating said the cumulative effect of these additions has been a code that is increasingly difficult for builders, designers and regulators to interpret and apply.

“It has become increasingly difficult to build a home in Australia,” Mr Keating said.

“Builders want to be on site delivering homes for Australians, not buried in paperwork trying to navigate a regulatory maze.”

The association argues that while many regulatory changes have been introduced with good intentions such as improving sustainability, accessibility or energy performance their combined impact has added significant complexity to the system.

Productivity and Housing Supply Concerns

The building industry has long faced criticism for declining productivity, particularly when compared with other sectors of the economy. HIA’s submission suggests that regulatory complexity is one of the contributing factors.

Builders, designers and certifiers must navigate an increasingly detailed code along with multiple referenced standards, state regulations and local planning requirements.

Industry groups argue that this layered framework can lead to delays in approvals, increased compliance costs and uncertainty about how requirements should be interpreted.

Mr Keating said the issue ultimately feeds into the broader housing affordability challenge.

“If we are serious about improving housing affordability and delivering the 1.2 million homes target, the regulatory system must support supply rather than working against it,” he said.

The association emphasised that the NCC is only one component of Australia’s broader housing regulatory system, but it remains one of the most influential frameworks governing how homes are designed and constructed.

Key Reforms Proposed by HIA

In its submission, the HIA has proposed a range of reforms aimed at simplifying the NCC and making it easier for industry participants to understand and apply.

Among the recommendations are calls to:

Simplify the structure and language of the code

The association argues that clearer drafting and more streamlined provisions would make the code easier for builders and designers to interpret.

Introduce a five year amendment cycle

Currently, the NCC is updated on a three year cycle. HIA is proposing a five year cycle to provide greater stability for the industry and reduce the frequency of regulatory changes.

Make Australian Standards freely available

Many technical requirements within the NCC rely on referenced Australian Standards, which must often be purchased separately. HIA argues that making these standards free would improve access and compliance.

Improve usability and digital accessibility

The association says modernising how the code is presented and accessed would help builders and regulators navigate its provisions more efficiently.

Create clearer pathways for innovation

HIA is calling for better frameworks within the code to allow the adoption of modern construction methods, new materials and emerging technologies including artificial intelligence.

These reforms, the association says, would make the code more practical for the way homes are designed and built today.

Strengthening National Governance

Another key element of HIA’s proposal is the strengthening of the Australian Building Codes Board (ABCB), the body responsible for developing and maintaining the NCC.

The association argues that stronger governance and greater resources would help ensure the code functions effectively as a truly national framework.

Australia’s construction sector operates under a federated system where state and territory governments adopt the NCC through their own legislation. While the code aims to provide consistency, differences in implementation and additional state based requirements can still create variation across jurisdictions.

HIA’s submission suggests that clearer national leadership could help improve coordination and reduce unnecessary regulatory overlap.

Balancing Safety, Sustainability and Affordability

Debates around the NCC often centre on the balance between improving building performance and maintaining housing affordability.

Recent editions of the code have introduced new energy efficiency requirements, including stronger thermal performance standards designed to reduce household energy use.

Supporters of these changes argue they will deliver long term benefits for homeowners by reducing energy bills and improving comfort.

However, some industry groups say the upfront costs associated with these changes can add to already high construction costs.

Mr Keating said the goal should not be to remove safety or performance standards but to ensure the code remains focused on its core role.

“Housing affordability cannot be an afterthought when developing building regulation,” he said.

“The NCC must return to its core role as a clear, technical minimum standard that ensures safe homes while allowing the industry to deliver housing efficiently and affordably.”

The Role of Innovation in Future Housing Delivery

One of the themes emerging from the NCC review is the need to support new construction technologies and methods.

Australia’s housing sector is gradually exploring alternatives such as modular construction, prefabricated components and digital building systems.

Industry leaders argue that regulatory frameworks need to evolve alongside these innovations.

Without clear pathways for approving new systems or materials, emerging technologies can struggle to gain traction even when they offer potential productivity or sustainability benefits.

HIA’s submission calls for clearer approval mechanisms within the NCC to enable these technologies to be adopted more easily.

A Wider Housing Policy Puzzle

While the NCC review is a significant policy process, it sits within a much larger national conversation about housing supply.

Governments at all levels are attempting to address shortages through planning reforms, infrastructure investment and housing targets.

However, industry bodies frequently highlight the cumulative impact of regulatory systems across planning, building and environmental frameworks.

In that context, the NCC review represents one piece of a broader effort to improve the efficiency of housing delivery.

Mr Keating acknowledged that point in the association’s submission.

“The NCC is only one part of the broader regulatory framework affecting housing supply, but it is an important piece of the puzzle,” he said.

Consultation and Next Steps

The consultation on Streamlining and Modernising the NCC forms part of a wider effort by the Australian Building Codes Board to examine how the code can be improved.

Industry groups, governments, designers and building professionals are expected to provide submissions as part of the process.

The review will consider how the code can better balance safety, sustainability, innovation and housing supply objectives.

For the HIA, the moment represents what it describes as a “once in a generation” opportunity to rethink how Australia regulates building construction.

“It’s time for a genuine overhaul,” Mr Keating said.

“We need a modern code that works for the way housing is delivered today, supports innovation and ultimately helps more Australians achieve home ownership.”

Author: TGB Editorial