What Is the National Construction Code and why the freeze?
The federal government has announced a pause on new residential changes to the National Construction Code (NCC) until 2029, aiming to cut red tape and give builders a more stable set of rules to work with. Only urgent safety or quality updates will go ahead during this period.
The NCC is Australia’s rulebook for how buildings are designed and constructed, setting the minimum standards for safety, health, accessibility, and sustainability. It’s usually updated every three years and adopted by each state and territory. The current version was released in 2022, and the 2025 edition is now being finalised – after which the freeze will take effect.
The decision was announced on 24 August 2025 by Housing Minister Claire O’Neill and Environment Minister Murray Watt, who said there was ‘broad consensus’ to reduce the regulatory burden on builders. It also follows calls from the Economic Reform Roundtable for faster housing approvals and fewer regulatory hurdles.
What Will Change Between 2025 and 2029?
Once the 2025 updates to the 2,000-page National Construction Code are complete, no further changes will be made until mid-2029, except for urgent safety or quality updates. The next round of changes had been planned for 2028, but this decision pushes back any new rules – including those on energy efficiency or environmental standards – by at least a year.
Government’s Rationale: Cutting Red Tape to Boost Housing Supply
The pause is designed to give builders a stable and consistent framework, helping them get homes approved and built faster without constant regulatory changes or added red tape.
Removing building red tape to speed up housing construction won’t cut corners on standards, Housing Minister Clare O’Neil said; “We want builders on site, not filling in forms to get their approval.”
Technology and Regulatory Reform on the Horizon
The government says the freeze aims to strike a balance between keeping Australia’s strong building standards and reducing the delays and costs that slow down housing construction. Existing rules – like the 7-star energy efficiency standard introduced in 2022 – will stay in place, while only essential safety and quality updates will continue during the pause.
Part of the plan is to make the National Construction Code easier to use, possibly by integrating AI tools to help builders and tradies navigate it. The government is also looking at extending the review cycle beyond the current three-year schedule to reduce constant changes and provide more stability for the industry.
Environmental Fast-Tracking
As part of the same policy package, the government will fast-track approvals for 26,000 homes currently stalled in environmental assessments under the EPBC Act.
The Political Twist
Interestingly, during this year’s election campaign, Labor criticised the Coalition’s plan to freeze the National Construction Code for ten years – yet the government has now introduced its own shorter pause.
Industry Reaction: Stability vs Stalled Progress
While the move aims to cut red tape, some experts warn it could delay innovation and improvements in housing quality, sustainability, and accessibility.
Engineers Australia said the organisation supports a strong and evolving code that promotes safety and sustainability but cautioned that freezing updates could stall progress. “The current code, while functional, does not adequately support the scale, speed or innovation required to deliver more homes in Australia,” she said.
Others argue the freeze doesn’t solve the real issue, which is the code’s complexity, and may simply postpone much-needed reforms while builders continue to face high compliance costs.
The Core Debate: Speed vs Sustainability
The freeze is being framed as a practical step to boost housing supply and cut red tape, giving builders a stable set of rules so they can focus on construction rather than constant regulatory updates.
Frequent code changes often mean more paperwork, training, and redesigns, so many in the industry have welcomed the pause as a way to reduce confusion, manage costs, and help speed up housing delivery.
At the heart of this debate lies a real question: the federal government insists it has struck the right balance between maintaining sustainability and energy standards while cutting red tape to speed up housing approvals.
However, should Australia focus on meeting its climate and sustainability commitments, or prioritise short-term housing targets?
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