The federal government’s plan to deliver more homes by easing the regulatory burden on the building sector has stoked concerns among insurers.

Housing Minister Clare O’Neil posted on X: “It’s too hard to build a home in Australia. It just shouldn’t take longer to get approval for a home than to build one, but often that’s exactly what happens.

“So, as a result of Labor’s economic reform roundtable, we’re pausing parts of the National Construction Code and fast-tracking environmental approvals so builders can build the high-quality homes we need.”

The construction code sets minimum levels for the safety, health, amenity, accessibility and sustainability of certain buildings and is updated every three years.

The next update is due to start in 2028, but media reports suggest the federal government is planning a four-year pause.

The move shapes as a blow to the insurance industry, which has been pushing for the principle of resilience to be embedded in the code.

An Insurance Council of Australia spokesperson said: “ICA acknowledges the importance of tackling Australia’s housing shortage and the need to ensure the construction of new homes is streamlined, but this must strike a balance to ensure that new builds aren’t locking in future risk at the expense of community resilience to worsening disasters.”

The spokesperson says homes and businesses are not built to withstand the disasters Australia is experiencing now, “let alone the worsening disasters of the future. To address this, insurers have long advocated for the National Construction Code to be amended to require that new homes are built to stronger standards which make them more resilient to the impacts of bushfires, cyclones and floods. This reform could save our economy an estimated $4 billion a year.”