ACT Scraps Building Rules to Boost Construction Productivity
ACT Streamlines Building Approvals to Cut Costs

The Australian Capital Territory government has unveiled a significant overhaul of its building and development regulations, aiming to streamline construction processes and deliver substantial cost savings for homeowners.

Major Regulatory Changes Ahead

Planning Minister Chris Steel announced the reforms as part of the government's construction productivity agenda, which incorporates both major and minor adjustments proposed by the industry itself. The changes are expected to noticeably shorten time frames for building and development assessments while maintaining high standards for new homes.

Mr Steel emphasised that these agreed reforms would lead to better outcomes for all Canberrans. "The agreed reforms under our productivity agenda will lead to better outcomes for all Canberrans with noticeably shorter time frames for building and development to be assessed," the Minister stated.

Key Reforms and Exemptions

The government will develop legislation for the initial stage of changes over the coming months, focusing on several key areas:

  • Simplifying energy efficiency requirements for extensions and renovations
  • Exempting more types of minor, low-impact building work from development approval
  • Allowing more development types to apply for exemption certificates
  • Introducing simpler rules for sheds, garages and carports
  • Providing greater scope to replace and upgrade windows without approval
  • Implementing better rules for decks that don't negatively affect neighbours

A shorter assessment process will also be introduced to handle minor non-compliances, freeing up resources for more complex development approval assessments.

Cost Savings and Practical Benefits

One of the most significant changes involves the removal of mandatory greywater piping requirements for new homes. This move is expected to save homeowners approximately $1500 on the cost of a new build.

Mr Steel explained the reasoning behind this particular reform: "Since the Millennium drought, there has been a requirement to install greywater pipework in all new houses in the ACT, but very few homes have actually installed greywater systems. This an example of a well-intentioned requirement that has come at a significant cost with very few benefits realised."

The government will also introduce recognition for Passive House certification for new homes. These highly insulated buildings require minimal energy for heating and cooling, aligning with broader sustainability goals while reducing long-term costs for residents.

Industry Support and Implementation Timeline

The Property Council has welcomed the planned changes, with ACT and capital region executive director Ashlee Berry emphasising the importance of swift implementation. "The first tranche of reforms contains practical steps that will make a real difference. Streamlining assessments, cutting unnecessary costs, and reducing low-value red tape are exactly the sorts of changes industry has been calling for," Ms Berry said.

She added that if these reforms are implemented quickly, they will improve feasibility and help get more homes built in the territory.

The ACT government has committed to bringing forward additional improvements every six months as part of its ongoing construction productivity agenda. The changes will focus on improving productivity to support housing and economic outcomes, strengthening the construction sector's resilience, and ensuring new homes meet high standards in a timely manner.

These local reforms complement changes the ACT has agreed to as part of a specific "reform plan" under the national competition funding deal with the Commonwealth. This includes projects to limit anti-competitive objections to developments, expand permissible land uses, and support modern construction methods like prefabricated and modular building.