The federal Coalition has flagged it would strip Australia’s National Construction Code of compulsory energy and accessibility standards if elected, handing compliance back to individual states.

Opposition housing and environment spokesperson Andrew Bragg, speaking at the National Press Club, said a Coalition government would cut the National Construction Code from more than 2,000 pages to 80, with new homes only required to meet “basic and safe” thresholds. Energy performance and accessibility measures would become optional.

The cost argument is the Coalition’s centrepiece. Industry groups told a recent Senate inquiry that code changes over the past seven years have added somewhere between $3,600 and $33,000 to the cost of a new home, though the upper end is disputed. Government analysis found lifting the minimum energy star rating from six to seven stars, the current standard, added less than 1 per cent to average capital costs. The Reserve Bank and CSIRO both examined previous energy efficiency upgrades and found construction costs barely moved, and in some cases fell.

For builders and tradies, the plan cuts both ways. Less prescriptive rules could reduce paperwork and compliance overhead, particularly for small-volume builders who carry the administrative burden hardest. But a patchwork of state-by-state codes would create a different headache: workers crossing borders, or companies operating across multiple states, would need to track eight different sets of requirements instead of one national standard.

Energy Efficiency Council chief executive Luke Menzel said the current code already accounts for eight climate zones, so Hobart and Darwin aren’t being held to the same spec. He also said a standardised national approach keeps industry compliance costs down.

Renters face the sharpest consequences if standards are dropped. A home built without insulation or thermal mass in western Sydney, Darwin, or inland Queensland will run an air conditioner harder in summer and a heater longer in winter, pushing up energy bills for the people least able to absorb them. Australian Council of Social Service chief executive Cassandra Goldie said stripping minimum standards would shift costs to households and leave future generations with expensive, uncomfortable homes.

Treasurer Jim Chalmers told the ABC the government had already paused some code changes it considered too complex and costly, and was working with states to simplify the framework.

For tradies watching this debate, the practical question is whether a rollback actually delivers cheaper builds on the ground, or just shifts costs from the developer’s invoice to the owner’s electricity bill.

Frequently asked questions

What is the Coalition proposing to change about the National Construction Code?

The Coalition says it would cut the code from more than 2,000 pages to 80, requiring new homes to meet only ‘basic and safe’ thresholds. Energy performance and accessibility measures would become optional and left to individual states.

How much has the current code actually added to build costs?

Industry groups told a Senate inquiry that code changes over seven years added between $3,600 and $33,000 per home, though the upper figure is disputed. Government analysis found lifting the minimum energy star rating from six to seven stars added less than 1 per cent to average capital costs.

Would scrapping national standards create more compliance work for tradies?

It could. Workers crossing state borders, or companies operating in multiple states, would need to track eight different sets of requirements instead of one national standard, replacing one type of compliance burden with another.

Sourced from The Guardian Australia, Energy Efficiency Council, Australian Council of Social Service, Reserve Bank of Australia, CSIRO. Original article.