$120m NCC reform fund targets modular construction barriers

The Federal Government’s interim report into the modernisation of the National Construction Code (NCC) has drawn support from the Property Council of Australia, with industry pointing to duplicated assessments and inconsistent application as a constraint on housing delivery.

Released on 30 April, the report identifies a system that continues to deliver safe buildings but is no longer operating as a clear, nationally consistent framework. Instead, layered regulation, jurisdictional variation and complex compliance pathways are contributing to rising costs and slower approvals as governments work towards a 1.2 million home target by mid-2029.

Property Council Chief Executive Mike Zorbas said the report reflects long-standing concerns about cumulative regulatory burden and fragmented implementation.

“Red tape and overlaps between governments shrink new housing supply and make new homes more costly,” he said.

Funding shift targets modular and repeatable systems

The interim report sets out five reform directions focused on usability, national consistency, innovation pathways and reducing the cost of demonstrating compliance. Central to this is the removal of duplication across the NCC, Australian Standards and state-based variations—issues that add time and cost without improving outcomes.

For modular and prefabricated construction, the report is supported by a targeted funding commitment. Through the National Productivity Fund, the Government has allocated AUD $120 million to remove regulatory barriers affecting modern methods of construction, including establishing nationally consistent definitions, developing certification pathways for manufacturers, and ensuring regulatory neutrality between offsite and conventional delivery.

The intent is to shift prefabrication away from project-by-project approvals towards repeatable system-based certification. This aligns with the report’s identification of repeatable design approvals as a mechanism to reduce duplication, cut assessment timeframes and support scaled housing delivery.

The report also highlights that performance-based pathways—intended to enable innovation—are often avoided due to inconsistent interpretation and approval risk. For offsite manufacturers, this limits the ability to deploy standardised systems across multiple projects.

A nationally consistent certification framework would allow modular systems to be assessed once and applied across jurisdictions, restoring the productivity gains associated with industrialised construction while maintaining performance standards.

The interim findings will inform a final report to Building Ministers later this year.

Footnote: Built Offsite attended the Property Council National Housing Solutions Summit 2026 in Melbourne on Thursday April 30 and will publish a full report shortly.

Find the Federal Government’s National Construction Code Modernisation Project – Interim Report HERE