Property Council welcomes Building Ministers' commitment to improve energy efficiency of new homes

[26 August 2022]

The Property Council of Australia has today welcomed the decision of the country's Building Ministers to lift the energy efficiency standards of new homes to 7 stars, and has urged the states to maintain a consistent transition to the new standards.

The agreed changes to the National Construction Code (NCC) represent the first significant adjustment to energy standards in a decade.

Property Council of Australian Chief Executive Ken Morrison said it was pleasing to see the Ministers commit to the higher standards, which will in turn deliver energy bill savings and better living conditions for Australians, as well as reduced emissions.

"It is great, that after years of work and advocacy on this matter, Ministers have made the commitment to improve the efficiency of all new homes built in Australia," Mr Morrison said.

"Lifting the energy rating from 6 to 7 stars has the potential to slash the average household energy bill by up to $576 a year, so for homeowners and renters alike, a 7-star home means big savings, as well as higher levels of comfort," he said.

In this afternoon's meeting, the Minsters agreed to adopt a minimum standard of 7 stars for all new builds, and the introduction of a 'whole-of-home' budget approach to managing the energy use of fixed appliances including heating and cooling, hot water, lighting, and pool and spa pumps.

"Although all Ministers have agreed to adopt the new standards, we note they have left open the option of adjusting some details across jurisdictions," Mr Morrison said. "We strongly urge the Ministers to remain consistent.

"The National Construction Code is in place as a national agreement for good reason.

"We are one country, and when there is inconsistency, there is greater cost for industry and consumers," he said.

The Ministers also agreed to new livability standards which would increase the number of homes with accessibility features for Australians with mobility limitations, including wider corridors and step-free access.

"The Property Council agrees housing accessibility is vitally important, especially for that significant minority of the population who have need of additional design features at any given stage of life.

"However, the Property Council believes better targeted provisions would deliver accessible housing to people that need it, without imposing more costs on people who do not.

"The government's own Regulatory Impact Statement is clear that, as originally proposed, the costs of these changes outweigh the benefits by a minimum of $4 billion over ten years.

"As an industry we want to see standards and accessibility improve, and we have argued that a three-year, harmonised transition period for the liveable housing provisions would provide better certainty and outcomes," Mr Morrison said.

Earlier this month the Property Council joined more than 100 organisations in calling for the Ministers to make the changes to the minimum energy standards.

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