The Malinauskas Labor Government has provided greater certainty to the building and construction industry by ensuring there won't be any further changes to the National Construction Code (NCC) for the next decade following the implementation of the new standards.
From 1 October 2024, newly constructed homes in South Australia will be required to be seven-star energy efficient, up from six-star. While greater consideration will need to be given to accessible design allowing for South Australians with mobility limitations to transition through life stages in their own homes.
As part of the Housing Roadmap, the Labor Government has committed to maintaining these standards for the next ten years.
This decade long guarantee will ensure there's stable building conditions in South Australia and provide long term certainty to the industry.
The State Government has also worked with housing and construction industry associations to formulate a pathway to ease the transition to the new NCC liveability and accessibility standards.
The new NCC standards were agreed nationally at the Building Ministers' Meeting on 26 August 2022 and were due to commence nationwide in May 2023.
In recognition of the current pressures on the construction and building sectors, including market capacity, supply chain disruption and workforce uncertainty, the South Australian Government provided a further transitional period until October 1, 2024.
Additional efforts have also been undertaken by a working group established by the Minister for Housing and Urban Development Nick Champion MP to address State specific issues such as small, narrow and irregular blocks, accommodation used by workers or tourists, and areas where geographic conditions are considered to pose challenges.
A range of housing affordability provisions have been made including:
- Any development application for a house or apartment that has been lodged prior to 1 October 2024 will be considered under NCC 2019.
- Allotments having a frontage of less than or equal to 10 metres, or irregular allotments with an area of less than 300m2 will not be required to comply with Livable Housing Design provisions.
- An exemption from the Livable Housing Designs provisions for small buildings less than or equal to 60m2 that are built offsite, and workers and tourist accommodation.
- Workers and tourist accommodation will continue to operate under the energy efficiency provisions of NCC 2019.
- An exemption from installing a toilet on the entry level where there are no habitable rooms located on that level
- Applications for building rules consent submitted prior to 1 January 2027, on allotments for which a development application for land division had been lodged prior to 1 January 2024 can be considered under NCC 2019.
- A three-year exemption to the building fabric provisions within the Master Planned Neighbourhood Zone in the Mount Barker District Council
- A concession on the energy efficiency requirements for lightweight and transportable homes
There will be a review of these South Australian specific provisions after 18 months to ensure that they are allowing for a proper transition from NCC 2019 to NCC 2022.
The decision to implement the NCC's new provisions has been formed in conjunction with housing industry, climate, disability and ageing sector stakeholders and follows a period of considerable consultation.
The State Government's housing agencies – Renewal SA and the South Australian
Housing Authority – are already meeting the NCC requirements in their new builds.
As put by Nick Champion
The changes to the NCC seek to deliver better living standards to South Australians with the Government acknowledging the need for greener, more accessible homes.
As a Government, we also realise this is a big change for the building and construction sector so I have worked closely with industry associations to develop a range of concessions to help ease into the new regulations.
It's important we provided an extended transition period, to allow the industry to adapt to the new measures and then not make any further changes for the next decade to give them a sustained period of certainty.
There will be some initial increase in the costs of building homes but the improved energy efficiencies will reduce the day to day cost of living which over time, will offset the slightly higher construction costs.
As put by Will Frogley, CEO Master Builders SA
Arresting the surge in SA housing prices is absolutely vital. It's vital to our economy. It's vital to our ability to attract the new workforce we need, and it's vital to keeping the dream of home ownership alive for future generations.
I thank Minister Champion and his team for taking on board the feedback of industry with regards to the NCC 2022. The exemptions he has made are sensible and will help to reduce escalations in the cost of building a new home.
I also applaud the decision to pause on further changes to these standards for a decade.
This pause will ensure we can meet the balance between delivering high quality, inclusive homes, and managing construction cost escalations increases. It also gives industry certainty as we work to overcome the housing shortage.
As put by Stephen Knight, Executive Director Housing Industry Association
Home builders welcome this announcement by Minister Champion which provides certainty for the industry and new homeowners. With construction costs continuing to rise knowing that these new requirements will be held for a decade is good news.
Housing affordability and availability is arguably the biggest issue confronting our community. After these new requirements have been introduced on 1st October placing a long term hold on any further additional stringencies that could impact on the delivery of new homes is a great decision by Minister Champion.
South Australian housing affordability has always been the envy of the nation , it is important that we do whatever we can to maintain that position. This decision sends a clear message to future home owners and investors that the SA Government means business when it comes to providing more homes for South Australians.
