NCC Significant Changes: MUST READ

The National Construction Code (NCC) of Australia has undergone significant changes that came into effect on May 1, 2023. These changes are some of the most substantial since the Building Codes of Australia and the Plumbing Code of Australia were combined in 20111. Here’s a blog post that outlines these changes and their implications for new home constructions:

Understanding the New NCC Changes and Their Impact on New Home Prices

As of May 1, 2023, the construction industry in Australia has embarked on a new era with the adoption of the updated National Construction Code (NCC) 2022. This code brings forth a series of changes aimed at improving the quality and sustainability of new home constructions. However, these changes also come with cost implications that potential homeowners and industry professionals must be aware of.

Key Changes in NCC 2022

The NCC 2022 introduces several key changes, including:

1. New Consistent Volume Structure: A reorganized structure across all volumes for better consistency and user experience1.

2. New Housing Provisions Standard: This aligns with the structure of the NCC volumes and represents the Acceptable Construction Practices content previously found in NCC 2019 Volume Two, Section 32.

3. Livable Housing Requirements: New requirements for Class 1a buildings and Class 2 sole-occupancy units based on the Livable Housing Design Guidelines silver standard, with a voluntary gold standard also available2.

4. Lead-Free Plumbing Products: From September 2025, there will be new requirements for plumbing products containing copper alloy intended for use in contact with drinking water2.

Implications on New Housing Prices
The introduction of these new standards is expected to have a direct impact on the costs associated with building new homes. Industry experts predict a potential 5% surge in building costs due to these changes3. This increase is in addition to the usual annual inflationary rise, which could lead to substantial cost escalations. For example, a $500,000 build might see a price surge of approximately $25,000, and a $1 million build could experience an increase of around $50,0003.

The Positive Side of the Changes
Despite the initial cost implications, these changes are set to bring long-term benefits to the Australian housing market. The focus on livable housing will increase the stock of accessible homes, supporting Australians with disabilities, older citizens, and their families. The move towards lead-free plumbing products is a significant health improvement that will benefit all Australians.

The NCC 2022 changes mark a progressive step towards a more sustainable and inclusive future for Australian housing. While the immediate cost implications may be a concern for some, the long-term benefits of these changes cannot be overlooked. Homeowners and industry professionals should stay informed and prepare for the financial impact while looking forward to the positive outcomes these changes will bring.

For more detailed information and to access the full NCC 2022, visit the official NCC Online portal1. It’s crucial for industry professionals and potential homeowners to familiarize themselves with these changes to navigate the new landscape of Australian home construction effectively.