[+] Warning Sounded on National Construction Code Green Blitz

After laying idle for almost 10 years, Australia’s National Construction Code is finally getting a lick of paint to enforce minimum standard 7-star energy efficient homes. But industry groups are warning that an inconsistent approach across the states and territories could cost the property sector as it transitions to the new framework. The Building Ministers Meeting late last week endorsed the revamped code that will significantly change the standards of construction of houses across the country from May next year. The changes will also include an annual energy-use budget, aimed at driving “the economy’s transition to net zero emissions by 2050”, and boost housing accessibility rules, according to the Building Ministers Meeting communique. The changes the state and territory ministers agreed upon will require elements such as insulation, higher-quality glazing and smarter floor plans to be adopted in new builds, as well as consideration of energy-efficient appliances and rooftop solar and batteries. There will be a transition period through to October 2023 when the Modern Homes provisions for energy efficiency, condensation mitigation and livable (accessible) housing comes into effect. It comes off the back of more than 100 organisations campaigning for beefed-up energy-efficiency measures, including Frasers Property, Planning Institute of Australia, Australian Institute of Architects and Property Council of Australia. The transitional period for adoption is aimed at providing time for industry to adjust, particularly in light of current labour shortages and materials cost fluctuations. But Property Council of Australia chief executive Ken Morrison is warning that a state-by-state jurisdiction approach would be more costly for the property industry. “Although all ministers have agreed to adopt the new standards, we note they have left open the option of adjusting some details across jurisdictions,” Morrison says. “We strongly urge the ministers to remain consistent. The National Construction Code is in place as a national agreement for good reason. “We are one country, and when there is inconsistency, there is greater cost for industry and consumers.” The changes to residential homes could slash heating and cooling bills by up to $576 and, according to the Australian Building Code Board, will significantly boost the decarbonising of the economy, achieving more than 14.1 million tonnes in carbon abatement. ▲ The property sector will have until October 2023 to adopt the National Construction Code energy-efficiency targets for new homes. But the Property Council believes the accessibility framework in the newly inked National Construction Code would impose more costs on homeowners who did not need accessible living options. “The Property Council agrees housing accessibility is vitally important, especially for that significant minority of the population who have need of additional design features at any given stage of life,” a spokesperson said. “However, the Property Council believes better targeted provisions would deliver accessible housing to people that need it, without imposing more costs on people who do not. “The government’s own Regulatory Impact Statement is clear that, as originally proposed, the costs of these changes outweigh the benefits by a minimum of $4 billion over 10 years.” Green Building Council of Australia chief executive Davina Rooney says the energy efficiency targets will help to address the energy poverty crisis that “Australia is walking into”. “We commend the jurisdictions who have committed to a one-year transition period, we are happy change is on the way for Australian households,” Rooney says. “As we face this, and a changing climate that is generating more extreme weather variability and more serious and regular weather events, the code will lead to new Australian homes that are more comfortable to live in, have lower energy bills, and are better for the environment, with carbon emissions potentially lowered nationally by up to 15 million tonnes to 2030, and 78 million tonnes to 2050.” Australian Institute of Architects national president Shannon Battison says the lifting of energy-efficiency standards would materially impact Australia’s carbon emissions, using about a quarter of overall electricity usage across the country and producing about 12 per cent of the nation’s carbon emissions. Battison says the Institute is encouraging state and territory governments to adopt the building code as soon as possible and provide the sector with the training and support required to transition to the new standards. The Australian Building Code Board will release a preview of the new energy efficiency and condensation requirements on September 1. The ABCB is now turning its attention to developing the Building Product Assurance Framework, stemming from the Building Confidence Report. It will look at factors constraining market capacity, including supply chains and workforce shortages. Meanwhile, the NSW government has adopted the Sustainable Buildings State Environmental Planning Policy , which encourages the design and delivery of more sustainable buildings. It sets sustainability standards for residential and non-residential buildings and will kickstart embodied carbon-emissions measurement. Residential developments will need to achieve thermal performance standard of 7 stars NatHERS rating, and an increase of 7-11 per cent in greenhouse-gas reduction. Non-residential developments will be required to report on embodied-emissions measurement, energy standards for large commercial developments to be verified once occupied with residual emissions offset, and “certain developments” will need to be all electric or capable of converting by 2035. ▲ Planning and Homes minister Anthony Roberts has proceeded with the Sustainable Buildings SEPP despite scrapping his predecessor ’ s planning manifesto. Property Council NSW deputy executive director Lauren Conceicao said the move to measure embodied carbon was a “necessary next step”. “We caution government to avoid a disjointed approach for commercial and residential buildings. This will create confusion in the market and reduce the effectiveness of the provisions,” Conceicao says. “We have always supported objectives to create great places and deliver good design outcomes which are essential to the long-term success and sustainable growth of our cities and regional areas.” The Sustainable Buildings SEPP and Regulation amendments will begin on October 1, 2023, to give the industry and assessors time to prepare. Savings and transitional provisions have been included so that the SEPP will not apply to development applications or modification applications that have already been submitted, but not yet determined by the commencement date. Renovations valued at more than $50,000 will also be subject to the new policy, according to planning minister Anthony Roberts . “We need to ensure the places we live, work and stay in are more comfortable, all while we save people money on their power bills and contribute to our net zero target,” Roberts says. But the Sustainable Buildings SEPP will not apply to homes in the north coast climate zone and apartment buildings lower than six storeys as the energy bill savings would not offset higher construction costs for those developments. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Warning Sounded on National Construction Code Green Blitz

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