Concerns Arise Over Construction Code Pause Amid Housing Push
Concerns Arise Over Construction Code Pause Amid Housing Push
0
The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector.
Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia.
This move comes in response to challenges in the approval process, which often delays construction.
The National Construction Code is a critical regulatory framework that ensures safety, health, and sustainability standards in building procedures. It undergoes updates every three years, with the next set for 2028. However, reports indicate a possible government plan to defer this update by four years, a decision seen as potentially detrimental by industry stakeholders.
Insurance providers, represented by the Insurance Council of Australia (ICA), have expressed concern about this development. The ICA acknowledges the necessity of addressing housing shortages but warns against compromising future community resilience and safety. Insurers emphasise the importance of integrating resilience against natural disasters into the building regulations.
According to the ICA, current and future disasters necessitate homes and businesses that can withstand severe weather conditions such as bushfires, cyclones, and floods. Advocates suggest that enhancing the construction standards to accommodate these risks could collectively save the Australian economy up to $4 billion annually by preventing damage and losses.
As the housing initiative progresses, balancing speed with safety and resilience remains a central point of discussion among stakeholders. The pending pause on construction code updates has put a spotlight on the risk management strategies of both builders and insurers.
The decision to pause updates to the National Construction Code could have lasting impacts on the building industry, insurance markets, and the broader Australian community. While the acceleration in home construction seeks to address the housing deficit, there is a potential risk of building homes that do not sufficiently withstand environmental hazards, which could lead to increased insurance claims and economic burdens in the face of natural disasters.
Looking ahead, the construction and insurance sectors will likely continue advocacy for maintaining and enhancing building resilience standards. Further discussions with policymakers may lead to a balanced approach that meets immediate housing needs while safeguarding against future risks. Stakeholders might expect more detailed government guidelines and potential consultations to refine this initiative.
Published:Thursday, 28th Aug 2025 Source: Paige Estritori
Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more
The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector. Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia. This move comes in response to challenges in the approval process, which often delays construction. - read more
RACQ Insurance has been instructed to bolster a payout to a customer following a ruling by the Australian Financial Complaints Authority (AFCA). The dispute arose after the insurer's handling of a house fire claim lodged by a woman in October 2023 was found lacking. The fire, initiated by scented candles, resulted in significant fire and smoke damage to her home. - read more
The Australian Securities and Investments Commission (ASIC) has spotlighted significant shortcomings in the direct sale of life insurance products, urging the industry to reassess its sales practices. The recent review unearthed ongoing issues with remuneration structures, indicating that some insurers still link commissions to sales targets, potentially fostering aggressive sales tactics. The study further revealed a troubling rise in claims disputes, with reported cases more than doubling since 2018, raising concerns about the transparency and trustworthiness of these policies. - read more
A recent ruling by the Australian Financial Complaints Authority (AFCA) has upheld an insurer's decision to impose an additional $2000 excess on a property policy, following a dispute raised by a policyholder over claims history impacts. - read more
Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more
Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more
Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more
Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more
Public liability insurance is a type of coverage designed to protect businesses and individuals from the financial fallout associated with claims for injury or damage caused to third parties. It is particularly crucial for event organizers, who are responsible for ensuring the safety and security of attendees, vendors, and participants. - read more
Start Here !
Knowledgebase
Insurance Premium: The periodic amount paid for the purchase of insurance.
