Housing and Urban Development Minister Nick Champion today confirmed a range of exemptions have been carved out to help the South Australian housing industry deal with the looming uplift in the National Construction Code (NCC).

The Australian Building Codes Board, which is responsible for writing the NCC, agreed in August 2022 that all new residential dwellings in Australia need to reach a seven-star energy efficiency standard, up from six stars.

To reach seven stars, builders may have to construct homes with better insulation, double and triple window glazing, lighter roof colours and more internal doors and ceiling fans.

The NCC 2022 also includes new housing accessibility standards – including wider doors, corridors and step-free access – to help older residents and people with a disability find appropriate housing.

The building and construction industry claims the tighter requirements in NCC 2022 compared to NCC 2019 could add between $15,000 and $40,000 dollars to the price of building a new home.

The state government last year delayed implementation of the new code until October 1, 2024, to help the industry prepare for the change.

Champion’s office today confirmed that once NCC 2022 comes into force, building code uplifts will be paused for 10 years to provide “certainty” to industry.

In a statement, Champion said the uplift in the building code was a “big change” for the building and construction sector.

“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,” he said.

“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.”

A range of exemptions will also apply to the new building code. This includes a previously reported three-year exemption to the seven-star energy efficiency rating for new homes in the Mount Barker growth area.

New workers and tourist accommodation will also not need to adhere to the new code, nor will development applications for a house or apartment lodged prior to October 1.

The list of South Australian exemptions to the new building code.

The move has been welcomed by the housing and construction industry which has been lobbying for the exemptions and the 10-year pause.

Masters Builders SA chief executive Will Frogley, in a government-issued press release, said the exemptions were “sensible and will help to reduce escalations in the cost of building a new home”.

He said the 10-year pause on building code uplifts “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,” he said.

But Australian Institute of Architects SA executive director Nicolette Di Lernia labelled the pause a “band-aid solution” to housing affordability.

She raised concerns that homes built over the next 10 years under NCC 2022 will not have enough climate resilience, adding: “Climate change is not going to go away just because we find it inconvenient”.

“If we do not continue to respond to changing climate conditions, many of the homes constructed during this 10-year pause will not be resilient enough to provide healthy homes that occupants can afford to live in comfortably,” she said.

“This risks a housing supply and affordability crisis that is worse than the one we have now.”

But Housing Industry Association executive director Stephen Knight said the building code issue required pragmatism.

“If anybody wants a 10-star house, we’ll gladly build it for them,” he said.

“But when it becomes mandatory and impacts housing affordability and reduces the number of people who will be able to buy their own house… if you push up the cost of housing you build less houses.

“We’ve got to be pragmatic about it, and where’s the biggest problem now? Is it in housing availability and affordability, or is it the fact that a small number of houses might not be at that seven-star standard?”