The state government’s reforms are designed to increase the uptake of modern methods of construction, “mak[ing] it faster, easier and cheaper to build high-quality homes.”

The New South Wales government has passed a Bill outlining a regulatory framework and streamlining the approvals process for prefabricated buildings delivered via modern methods of construction (MMC), making it the first Australian jurisdiction to have formally recognised MMC in law and integrated them into the approvals system.

According to a media communique from the government, the new approach is set to “turbocharge” productivity in housing construction by “mak[ing] it faster, easier and cheaper to build high-quality homes.”

The new legislation recognises MMC in law by defining “prefabricated buildings,” integrating these into the building approvals system and setting clear rules for their manufacture, supply, transport, delivery and installation.

In addition, the Bill removes duplication between building and planning legislation, establishes a system of staged approvals to allow occupants to move in “as early as possible”, and allows minor variations to a building to be approved without the need for new planning consent.

The government claims that these changes, which require only one set of designs for duplicate apartment buildings to gain building approval, are expected save an average of $327,000 in design costs per apartment block. They also believe MMC has the potential to reduce overall building costs by up to 20 percent, and result in homes being built up to 50 percent faster.

“We’ve made common-sense changes to drive better outcomes for the people of NSW. Overhauling another fragmented, duplicative system with one clear set of rules targeted at building more quality homes faster in every corner of the state,” said Minister for Planning and Public Spaces Paul Scully.

Minister for Housing Rose Jackson also hailed the reforms, commenting, “Today’s housing challenges require modern solutions – and that’s exactly what these reforms are enabling.

“Prefabricated and modular homes are no longer fringe options. They are central to our housing solutions,” she added.

The changes to NSW legislation are backed by $32.2 million in the NSW 2026/27 Budget, which will be invested in “modernising the building approvals system, integrating it into the NSW Planning Portal, and piloting AI tools to speedup licence application processing,” the government has said.

Meanwhile, the government has also invited MMC operators from Australia and abroad to submit expressions of interest in partnering with them to establish a MMC innovation facility. The purpose of the facility is to deliver prefabricated building components in order to deliver modular housing at scale – in particular, medium-density home designs from the NSW Housing Pattern Book.

Source: Architecture, Au