Through the NPC, Australia’s residential building industry has issued a clear warning that housing supply will continue to suffer unless governments remove barriers to construction and avoid policy settings that undermine investment. 

Housing delivery is under pressure from all sides — rising costs, global uncertainty, workforce shortages and an increasingly complex regulatory environment.

The industry is united in its view that the only sustainable solution to Australia’s housing crisis is to build more homes, and that requires policies that support investment, productivity and confidence.

Emerging National Policy Issues

International conflict and housing

The NPC reaffirmed its concern that ongoing international conflict continues to pose risks to residential construction activity in Australia. These risks include increased costs of materials, extended construction timeframes and greater uncertainty across housing markets.

With much of the residential building industry operating under fixed price contracts, builders — and the trades and product suppliers that rely on them — are exposed when costs increase unexpectedly. 

This reinforces the need for all levels of government to avoid introducing policies that would further impede housing delivery, including additional taxation, regulatory burdens or administrative delays.

Taxation policy

Members reaffirmed the residential construction industry’s strong opposition to changes to the taxation system that would disincentivise investment in new housing.

The Congress noted that more than 40 per cent of new homes are financed by investors. Recent independent research indicates that increasing capital gains tax, when applied to establishing housing only, will reduce investment in new home supply. Improving the supply of housing requires more investment in new home supply, not less.

NCC Overhaul and Modernisation

The NPC recognised that Australia has a once in a generation opportunity to reform the National Construction Code (NCC), which is the cornerstone document governing home building. 

The NCC has become overly complex and has been tasked to solve an expanding number of policy issues. As a result, it is no longer fit for purpose. Builders are strongly of the view that the time is right for a complete knock down rebuild to restore it as a world leading code.

For those states who are implementing NCC 2025, NPC reaffirmed the position that industry needs room to breathe from any further regulatory changes, and any changes should not occur until at least 1 May 2027. Equally, any changes to workplace exposure standards for silica should be delayed.

New Building Policy 

Artificial Intelligence in the residential building industry

The NPC recognised that artificial intelligence (AI) has an important role to play in enhancing productivity across the residential building industry. AI has the potential to improve business operations and workplace practices, deliver on site efficiencies, achieve cost savings, and strengthen supply chain outcomes through more effective sourcing and use of products and services.

As AI technologies evolve rapidly, governments must strike an appropriate balance between protecting privacy and intellectual property and ensuring that innovation is not unintentionally constrained. Over regulation risks limiting the industry’s ability to adopt new technologies that can help address skills shortages and improve productivity. 

Values Statement for the residential building industry

The NPC unanimously agreed to adopt a Values Statement for its members and the broader sphere of influence within the residential building industry.

The Values Statement articulates a set of core beliefs and principles intended to guide behaviour and decision making, and to inform how the industry operates and engages with stakeholders. The Congress agreed that a clearly defined values framework is beneficial to industry participants, the community and governments.

The Statement is underpinned by eight core principles designed to guide decision making, reinforce lawful and acceptable conduct, build trust, strengthen professionalism, promote ethical behaviour, and improve safety and building performance outcomes.

Circular economy

The NPC noted that the circular economy is an environmental concept aimed at maintaining the value of materials for as long as possible across all phases of their life cycle.

The federal government’s net zero plan foreshadows increased adoption of circular economy principles, including targets to reduce material footprints, lift materials productivity and increase resource recovery.

The Congress affirmed that the industry does not support circular economy principles being imposed as mandatory requirements in the design, manufacture or demolition of buildings. Any targets must not compromise the primary objectives of the National Construction Code (NCC) and relevant Australian Standards relating to life safety, nor undermine housing supply or affordability.

Policies affecting building products must preserve consumer and industry choice in materials and building solutions. Frameworks and regulations must recognise competing performance objectives, the high operational energy efficiency of new homes, and regional and geographical considerations that require flexibility in product selection.

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