National Construction Code

In reply to Mr TELFER (Flinders) (11 April 2024).

The Hon. N.D. CHAMPION (Taylor—Minister for Housing and Urban Development, Minister for Housing Infrastructure, Minister for Planning): I have been advised:

Changes to the National Construction Code (NCC) due to the implementation of the improved energy efficiency and new liveable housing requirements, referred to as the modern home's requirements, begin in South Australia on 1 October 2024.

A cost analysis was conducted at the request of the Building Ministers' Meeting, of which I am a member, by the Australian Building Codes Board (ABCB).

While I am not in a position to release all the modelling provided to the Building Ministers' Meeting-Ministerial Council, I can advise that the full regulatory analysis, which was undertaken by the Centre for International Economics (completed 2021), has been published on ABCB's website and provided estimates of additional costs per dwelling for liveable housing, ranging between $3,874 (for a house at 'silver' level) up to $5,748 (for an apartment at 'silver' level).

Building ministers also requested that the stringency of residential energy efficiency within the NCC be increased to seven stars, resulting in estimated average additional up-front costs of around $7,000; however, some of these costs will be offset by the energy savings.

Modelling as outlined above indicates that the new standards could be done for approximately $10,000, a far cry and in stark contrast to the claims made by construction and industry stakeholders that the purported NCC 2022 changes would be more than $80,000.

However, acknowledging that there would be an impact on consumers and industry, the government weighed the benefit of an increase of our state's energy efficient housing stock and the provision of greener more accessible homes for future generations of South Australia against what would be a modest impost on house prices.

To that end, the state government deliberately delayed the implementation to allow the building industry to adapt to the changes.

Furthermore, in recognition of the unique circumstances facing South Australia, required the NCC 2022 provisions to be tailored to our state by introducing a longer transitional period for the modern homes provisions.

To support the sector during this transition, the state government worked closely with key stakeholders to provide advice on industry and sector-specific impacts of implementing the modern homes provisions.

During the transitional period, several exemptions were also developed following consultation with industry, including:

An exemption from the liveable housing requirement to install a toilet on the entry level where there are no habitable rooms located on that level.

Housing constructed on irregular or existing allotments with a frontage of 10 metres or less, or with an area of less than 300 square metres, will remain subject to the energy efficiency (building fabric) provisions of NCC 2019.

An exemption for three years from the building fabric provisions, limited to the Master Planned Neighbourhood Zone within the Mount Barker District Council.

Workers and tourist accommodation, which can continue to comply with the energy efficiency provisions of NCC 2019.

The agreed concessions will be reviewed after 18 months to ensure they are allowing for an orderly transition to NCC 2022.

The state government also notes that other Australian jurisdictions replicated South Australia's approach and leadership with respect to the delayed implementation of NCC 2022 while also adopting jurisdictionally relevant exemptions.