As the building and construction sector moves toward a low-carbon future, sustainability is no longer a buzzword, it’s becoming a compliance benchmark. In response to national climate targets and growing consumer demand for environmentally responsible design, new builds across Australia are increasingly subject to stricter sustainability guidelines. These evolving standards affect everything from materials selection and energy performance to access provisions and compliance pathways.

At MBC Group, we understand that keeping pace with these changes can be complex, especially when balancing cost, compliance, and construction timelines. Our integrated services across Building Surveying, Code Compliance and Access Consultancy allow us to support our clients in navigating these transitions with clarity and confidence.

The shift towards performance-based outcomes

New sustainability requirements are placing greater emphasis on performance-based design, which requires a collaborative and flexible approach. Instead of relying solely on prescriptive solutions, developers and designers are now tasked with demonstrating how their projects meet high-level sustainability outcomes like carbon neutrality, improved indoor environmental quality, and long-term operational efficiency.

Through our work as Building Surveyors, we help our clients assess whether these performance solutions align with relevant compliance frameworks, including the NCC and state-based planning regulations. Early engagement allows us to identify potential compliance risks and resolve them before they delay approvals or increase costs.

Accessibility and sustainability go hand in hand

We also see a strong intersection between Access and sustainability. Truly future-ready buildings must support both environmental resilience and social inclusion. Our Access Consultants ensure that sustainability initiatives such as green roofs, low-emissions finishes, or daylighting strategies do not unintentionally limit usability for people with disability. We work closely with architects and project teams to make sure equitable access remains integral to every sustainable design decision.

NSW has shown a strong commitment to the development of sustainable and resilient homes and buildings. The State Environmental Planning Policy (Sustainable Buildings) 2022 encourages the design and delivery of more sustainable buildings across the state. It sets sustainability standards for residential and non-residential development and starts the process of measuring and reporting on the embodied emissions of construction materials. 

The purpose of the SEPP is to: 

• minimise the consumption of energy and potable water 
• reduce greenhouse gas emissions from energy use 
• monitor the embodied emissions of building materials 
• deliver buildings that are comfortable in summer and winter 

The SEPP will bring changes that ensure the buildings we live and work in are more comfortable places to be. It is hoped that the thermal performance measures will mean that buildings are cooler in summer and warmer in winter, making homes and offices more energy efficient and ultimately cheaper to run.  

In Victoria, the Built Environment Sustainability Scorecard (BESS) has been in use for a decade now and is the only dedicated tool for assessing sustainable design at the planning permit stage. Built and maintained by local governments, BESS is designed to assist development applicants and councils achieve sustainable design outcomes for the community. It assesses a range of sustainable design initiatives across various categories includes water, energy, indoor environment quality, transport, waste & resource recovery, urban ecology and building management.

Building Sustainability Index (BASIX) standards

Since 2004, more than 500,000 BASIX-compliant homes in NSW are reckoned to have saved 12.3 million tonnes of greenhouse gas emissions, and 340 billion litres of drinking water. The NSW Government will be Increasing the BASIX standards to improve the performance of homes with key changes to existing sustainability standards for new residential buildings: 

• an increase of the thermal performance standard from an average of 5.5-6 stars to 7 stars NaTHERS rating (Nationwide House Energy Rating Scheme) 
• an increase of between 7-11% in greenhouse gas reduction (varies depending on location and type of residential development proposed)

The BASIX standards are complementary and consistent with those in NCC 2022.  

Provisions for non-residential development

The sustainability provisions for non-residential development include: 

• embodied emission measurement and reporting for all developments 
• energy standards for large commercial developments, with energy performance to be verified after the buildings are occupied and offsets purchased for residual emissions 
• minimum water standards for large commercial developments 
• certain developments to be ‘all electric’ or capable of converting to operate without fossil fuels by 2035 – some of this we covered in a recent article that looked at electrification and NABERS compliance for commercial assets (read more).

What else could be utilised to improve building sustainability?

Australia’s build-to-rent market has grown in recent years as rental demand and prices have soared. While developers race to build more apartments, extreme weather events have sparked mould issues which, along with Covid-19 outbreaks, have brought concerns about proper ventilation in buildings. Furthermore, supply chain problems and labour shortages continually threaten project timelines and businesses across all sectors. Could a set of sustainable building guidelines from Germany be the answer to developers’ prayers? 

Using a scientific approach, Passivhaus (passive house) sets out how to design a building to significantly reduce heating and cooling costs and increase thermal efficiency and comfort. The principles include continuous insulation, no thermal bridging, air tightness, mechanical ventilation and heat recovery, and insulation of all components. Integration and consideration of all aspects of every stage is key in a passive house development as a means of designing a building to achieve net zero emissions.  

With this approach showing the way, it is possible for legislators to ‘encourage’ architects and developers to adopt sustainable practices which will benefit the planet with anticipated results looking to further reduce greenhouse gas emissions by around 2.6 million tonnes over the next 10 years (equivalent to planting over 8 million trees or running 54 wind turbines for 10 years), helping Australia on the path towards net zero.   

Looking Ahead

It should be noted that the biggest opportunities for growth of the passive house approach by sector have been identified as single dwelling residential, public and social housing, build-to-rent, residential and commercial multi-storey, education and healthcare. In other words, there will not be many development types left untouched by the drive for sustainable living and working built environments.

With the NCC 2025 changes on the horizon (from what we’re hearing likely to be September this year), the expectation is for updates around energy efficiency, condensation management, and embodied carbon; the importance of early, holistic compliance planning has never been greater. Whether you’re working in the residential, commercial, education, health or aged care sectors, our team is here to help you ensure sustainability is embedded into your projects without compromising on compliance.