Policy Snapshot - August 2024

15 Aug 2024

A word from Andrew Fischer, Head of Policy & Research, GBCA

Raising the Bar: Increasing expectations and enhancing standards in Australia’s buildings sector 

Evolving expectations for sustainability create a need to lift building performance standards across the built environment. To ensure that the efficiency, safety and sustainability of our homes and buildings continue to improve, government leadership and engaging the expertise and knowledge of industry are essential. 

As we push towards our net zero emissions goals, dialogues and consultation on policy and programs help align regulatory frameworks with real-world needs, paving the way for a built environment that is resilient and responsive to future challenges. It also helps to ensure the transition to efficient, healthy and climate-ready homes doesn’t leave the most vulnerable behind. 

Several important consultations have recently closed or are currently underway that seek to lift standards for Australia’s homes and buildings. For new, existing and rental homes, for commercial buildings and beyond, the momentum is building for better buildings. 

Strengthening building codes 

Consultation recently closed on the update to the National Construction Code (NCC) for 2025. NCC 2025 aims to ensure that buildings are electrification-ready and the proposed changes include the installation of PV systems on commercial buildings, requirements for EV charging for some building types, while others, such as homes, will need to ensure that their switchboards have capacity for installing EV charging. Such measures are crucial for integrating renewable energy solutions and supporting Australia’s transition to electrification. See our cover letter here 

Expanding home energy ratings 

In April 2023, the government announced funding to extend the Nationwide House Energy Rating Scheme (NatHERS) to include existing homes. This expansion will allow homeowners to obtain energy ratings for their properties, leading to improved comfort, lower energy bills, and increased confidence for financial institutions to support green upgrades. By offering thermal star ratings and whole-of-home energy assessments, NatHERS will play a pivotal role in enhancing the energy performance of Australia's existing housing stock.  Consultation on expanding NatHERS and on developing a national framework for home energy ratings is currently open.  

Strengthening the NCC and developing a single, national energy performance rating tool for homes are both recommendations in Every Building Counts, a policy platform released in 2023 by GBCA in partnership with the Property Council of Australia. Implementing minimum performance standards for rental homes, expanding the Commercial Building Disclosure Program and government leadership are several more. Read more about progress in these areas in this newsletter.  

Policy headlines

Raising rental standards

Recent consultations in Victoria and the Australian Capital Territory (ACT) have highlighted the need for minimum rental standards that ensure homes are both healthy and energy efficient. Key points of advocacy for GBCA include improving insulation, better draught sealing, and moving towards fossil fuel-free homes. Minimum standards for rental homes are critical for improving living conditions, reducing energy bills and aligning with broader environmental goals. 

See our submission to VIC See ACT consultation

Expanding the Commercial Building Disclosure Program

The Australian Government’s plans to expand the Commercial Building Disclosure (CBD) program mark a significant step forward. Since its inception in 2011, the CBD program has required NABERS energy ratings for large office buildings to be disclosed when sold or leased, resulting in a notable 35% reduction in energy use. 

The proposed expansion will apply these transparency requirements to a broader range of building types, which could further drive down emissions in line with net zero by 2050. Consultation is open until 13 September.

Find out more

Join us to learn about sustainable government procurement

The federal government has continued to transition the nation closer towards our climate goals by releasing the Environmentally Sustainable Procurement (ESP) Policy. The federal government also announced new Green Star and electrification requirements for government owned buildings as part of its Net Zero in Government Operations Strategy. This initiative not only supports the government’s net zero target for 2030 but also sets a precedent for the private sector to follow.  

Find out more about these two major policies at our webinar
See recent GBCA submissions here