Energy Rules Scrapped for New Homes Sparks Cost-of-Living Timebomb 2026

The Coalition's plan to scrap energy rules for new houses has been condemned as a cost-of-living timebomb that would deepen inequality. Advocates warn that removing compulsory energy efficiency standards from the National Construction Code would leave Australians with leaky, uncomfortable homes and skyrocketing energy bills.

What the Coalition's Housing Plan Proposes

Under the proposal, the National Construction Code would be slashed from more than 2,000 pages to just 80. All requirements beyond "basic and safe" construction would be stripped away, making longstanding energy and accessibility measures optional extras.

Speaking at the National Press Club, housing spokesperson Andrew Bragg said regulation was a "nightmare" and accused the government of making it "illegal to build a cheap house in Australia." The Liberal treasury spokesperson Tim Wilson even suggested people could "put a jumper on in winter" instead of investing in better housing quality.

Why Energy Efficiency Standards Matter

The Energy Efficiency Council called minimum standards "not some extraneous bauble" but essential protections. CEO Luke Menzel warned: "Australians deserve to live in decent housing, not leaky shacks with paper thin walls. This proposal is a cost-of-living timebomb."

Without mandatory efficiency rules, new homes may lack proper insulation, double glazing, and efficient heating and cooling systems. This forces residents to rely on air conditioners and heaters, driving up energy consumption and bills—especially for renters and low-income families.

Impact on Vulnerable Australians

Cassandra Goldie, CEO of the Australian Council of Social Service, stressed that governments should remove unnecessary regulation but must strengthen, not weaken, protections. Renters in western Sydney, for example, would face brutal summer heat without efficient cooling, leading to health risks and financial strain.

Comparison: Current Code vs. Proposed 80-Page Code

Key Takeaways for Homeowners and Renters

• Scrapping energy rules could increase annual energy bills by hundreds of dollars per household.
• New homes built without efficiency standards are harder and costlier to keep comfortable.
• Renters have no control over construction quality and bear the brunt of higher bills.
• Advocates urge voters to consider long-term costs, not just upfront construction savings.
• Existing efficiency standards help reduce carbon emissions and improve public health.

What Can You Do?

If you're planning to build or buy a new home, don't wait for regulations to change. Ask your builder for energy-efficient features like insulation, double-glazed windows, and efficient HVAC systems. Even small upgrades can cut your energy bills significantly over time.

For renters, check the home's energy rating before signing a lease. In Australia, many states require disclosure of energy efficiency ratings, so use that information to negotiate or choose a more efficient property.

FAQ

Stay informed about housing policy changes and their impact on your wallet. Always compare energy efficiency features when buying or renting a home—it's an investment in your comfort and finances.

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