The ACT will delay mandatory adoption of the new National Construction Code (NCC) 2025 until May 2027, giving builders and developers more time to prepare for the changes.
The updated code, Australia’s primary regulatory framework for building design and construction, is developed nationally by the Australian Building Codes Board, and adopted into state and territory legislation.
It comes into effect on 1 May this year, but does not become compulsory for new projects until a year later.
The NCC 2025 introduces changes aimed at improving energy efficiency; reducing leaks; preventing condensation and mould in new homes; fire safety provisions for commercial and apartment carparks; more female toilets, mandatory sanitary product dispensers, and all-gender bathrooms; and improving building quality and consistency.
During the 12-month transition period, builders can comply with either the current NCC 2022 or the updated NCC 2025. Projects that lodge key planning or works applications before November will also be able to proceed under the existing code.
Chris Steel MLA, minister for planning and sustainable development, said the updated code reflects national best practice and would improve building quality while supporting the construction sector through a period of adjustment.
“This approach ensures homeowners will benefit from modern standards designed to deliver safer, healthier and more resilient homes and building while providing industry flexibility in the current period of global uncertainty,” Mr Steel said.
The ACT has aligned its adoption timing with NSW and Queensland. However, some industry bodies want the ACT to join smaller states in not adopting NCC 2025 at all.
“We are providing industry a reasonable transition time to prepare whilst also providing a pathway for early adopters to benefit from the updated provisions,” Mr Steel said. “We will use this transition period to monitor implementation across other jurisdictions in determining the adoption of any variations to NCC 2025.”
However, Master Builders ACT CEO Anna Neelagama said: “South Australia and Tasmania have both recognised that their building industries cannot cope with the increased costs and complexity imposed by NCC 2025 and will not be implementing this update. We urge the ACT Government to do the same.”
The MBA argues that the new code would add between $14,000 and $55,000 to construction costs, and place further pressure on an industry already facing rising costs of materials and fuel, and interest rate rises resulting from the Middle East conflict.
“This is not the right time to introduce substantial changes that could further escalate costs for households,” Ms Neelagama said. “It is crucial to take into account the current economic climate and the financial strains placed on families looking to build or renovate.”
The organisation recommends the government undertake further review and consultation before implementing the new code.
The Property Council of Australia, however, said the transition period would provide greater certainty for industry.
ACT executive director Ashlee Berry said the decision responded to concerns about feasibility, timing, and consistency across borders.
“This is a sensible and practical approach that gives industry the time it needs to plan, price, and deliver projects with confidence,” Ms Berry said.
“A clear adoption timeline and a 12-month transition period will help avoid unnecessary redesign, reduce compliance risk, and support the continued delivery of housing and commercial development in the ACT.
“This is especially important at a time of heightened construction costs and feasibility pressures, and a positive signal that the ACT Government is willing to listen and respond to such pressures with sensible measures.”
For more information, visit the ACT Planning website.
