Why Strata Repair Costs Could Surge Under NCC 2025 – What Owners Need to Know

​Why Strata Repair Costs Could Surge Under NCC 2025 – What Owners Need to Know
As the introduction of NCC 2025 looms, the implications for owners of existing Class 2 buildings (i.e., strata apartments) in NSW are becoming alarmingly clear: costs for remedial works are expected to skyrocket.
In a recent episode of the Your Strata Property podcast and a detailed discussion paper published by ACRA (Australian Concrete Repair Association), industry leaders laid out the stark reality — and the significant risks — facing owners corporations.

​The Crux of the Issue: New Code, Old Buildings
At the heart of the concern is the proposed update to Section F of the NCC 2025, particularly its waterproofing and water shedding provisions. These provisions set ambitious standards — including fall gradients, slab structures, and substrate approvals — that are generally unachievable in existing buildings without major structural rework.
According to ACRA, the result is clear: owners corporations may be forced out of the "exempt development" category and into costly planning approval pathways.
 
Case in Point: One Balcony Repair, Three Scenarios
A simple balcony repair under current NCC 2022 rules costs around $55,000. Under NCC 2025, the same work could balloon to over $200,000 — a 367% increase — if planning approval is required. Even under a best-case scenario (a future CDC pathway), costs still rise to nearly $196,500, due largely to performance solutions, consultant fees, certifier costs, levies, insurance, and approvals.
 
Why This Matters to You
These changes don’t just affect builders — they directly impact strata owners, who may:

• Face significant delays (up to 12–14 months before work begins)
• Struggle to raise new funds not previously budgeted
• Incur higher building insurance premiums
• Risk legal claims from residents for maintenance delays
• Encounter a shortage of professionals willing to work under the new standards due to liability and insurance gaps

 
Industry Response: Call for Practical Reform
ACRA, alongside strata law experts like Amanda Farmer and Helen Kowal, is calling for:

• A Building Commission NSW-led consultation process
• Recognition that remedial works are not new builds
• A new pathway in the Codes SEPP to preserve exempt status for compliant remedial works
• Enhanced clarity, guidance, and transitional support for practitioners

 
What Can Strata Committees and Owners Do Now?

1. Stay Informed – Engage with updates on the NCC 2025.
2. Plan Ahead – Start forecasting budgets for potential increases in repair costs.
3. Speak Up – Contribute to ongoing consultations or reach out to your strata manager or advocacy groups.
4. Engage Experts – Ensure remedial work is designed and certified by professionals with a deep understanding of both construction and compliance pathways.

 
Final Thoughts
The intent behind NCC 2025 — safer, more durable buildings — is sound. But applying new-build standards to ageing structures without exemptions or alternative pathways risks imposing unsustainable financial pressure on thousands of strata communities.
Without reform, the very repairs that protect people’s homes could become inaccessible — not due to technical complexity, but because of a legislative misalignment.