The Australian Government’s Department of Industry, Science and Resources met to discuss the housing supply shortfall, and made three significant decisions.
Building Ministers see substantial potential to address Australia’s housing supply shortfall by promoting the growth of prefabricated and modular housing.
Realising the potential, they directed the Australian Building Codes Board (ABCB) to consult with industry and recommend regulatory improvements that would stimulate Australia’s prefabricated and modular housing industry.
They also agreed to release the next version of the National Construction Code for public consultation on 1 May 2024. Finally, they committed to a new round of Industry Dialogues, including discussion on reducing barriers to decarbonisation within the construction sector.
The Ministers reiterated the national target to construct 1.2 million new homes over the next five years and the need to address constraints to achieving the target and agreed on the need to pull all available levers to address these constraints.
Discussing the opportunities presented by recent developments in advanced manufacturing, supply chain and building techniques, they aim to reduce the cost of new homes by utilising prefabricated and modular housing.
The ministers have declared that they are committed to improving regulatory certainty for the sector. Therefore, they have tasked the ABCB to work with industry and local governments to clarify existing regulatory pathways through a new guidance paper and undertake a comprehensive review of regulation improvements to reduce red tape.
Building Ministers were presented with the draft version of the next edition of the National Construction Code (NCC). They recognised the need to give the industry an appropriate time period to properly respond to the draft code.
The next edition of the NCC will be released for public consultation on 1 May 2024, with consultation closing on 1 July 2024. Ministers received positive feedback about the improved method of stakeholder consultation, including public forums and direct engagement with industry leaders undertaken by the Chair and CEO of the ABCB to date.
The ABCB will hold further industry forums around the country in the coming months, and work with local industry and stakeholder groups. Ministers will also consult directly with industry on the draft Code at Industry Dialogues in both May and August this year.
Ministers acknowledged the importance of decarbonising the building sector in achieving the emissions reductions and net zero targets set by state and territory governments, and Australia’s Paris Commitments.
They noted the work underway to develop the Commonwealth’s Net Zero Built Environment Sector Plan (BESP), which will provide an emissions reduction pathway for the sector to 2050. The BESP will underpin development of the Commonwealth’s Net Zero Plan to transition Australia to a net zero economy.
Ministers also acknowledged the July 2023 commitment made by Energy Ministers, through the Energy and Climate Ministerial Council (ECMC), to update the Trajectory for Low Energy Buildings. The Building Ministers also discussed options to support improvements to energy efficiency, fuel-switching and reducing embodied emissions in construction materials.
They agreed to keep working together to address barriers to the decarbonisation of buildings covered by the NCC. They also committed to discussing these issues with industry at the next Building Ministers’ Industry Dialogue meeting.
Building Ministers also agreed to appoint The Property Council of Australia’s Director – National Policy Frankie Muskovic to the ABCB Board as an industry representative. Frankie brings a depth of experience in the building sector. She will serve as an industry representative and will advise on issues relating to housing supply and sustainable buildings.
