chalkline. Snap the line. Build to it.
concept Compliance and regulation 8 min read

Federal Code of Practice for Building and Construction: what it was, what replaced it, and what applies now

The federal Building Code 2016 was repealed in December 2022. What replaced it, what the Federal Safety Commissioner does, and how it affects residential builders.

By Dan Waring. Last updated 8 May 2026. Verified 8 May 2026.

Ask Chalkline about this →

TL;DR

The federal Code for the Tendering and Performance of Building Work 2016 (the Building Code) and the Australian Building and Construction Commission (ABCC) were abolished in December 2022 and February 2023 respectively under the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (verified 2026-05-08). For residential builders working on private jobs, the practical impact is minimal: Fair Work Act obligations that existed before the ABCC still apply, and state WHS and licensing laws have not changed. The main federal touch-point that remains is the Office of the Federal Safety Commissioner (OFSC) WHS Accreditation Scheme, which applies only to head contractors on Commonwealth-funded building work valued at $4 million or more (GST inclusive). Single dwelling houses are explicitly exempt from that Scheme regardless of value.

Body

Background: the Code’s origins and purpose

The federal Code for the Tendering and Performance of Building Work 2016 (the Building Code) was made under the Building and Construction Industry (Improving Productivity) Act 2016 (Cth) (BCIIP Act) and came into force in November 2016 (verified 2026-05-08). It applied to building contractors, subcontractors, and their employees on Commonwealth-funded projects, and to a broader class of entities when they tendered for such work.

The Code sat alongside the ABCC, a dedicated industry regulator with broader powers than the Fair Work Ombudsman (FWO) to investigate and take action against unlawful industrial activity in the building and construction sector. The ABCC had operated in various forms since 2005, following the Royal Commission into the Building and Construction Industry (the Cole Royal Commission, 2003).

The 2016 Code placed additional obligations on covered entities: requirements around enterprise agreements, freedom of association, union right-of-entry rules, drug and alcohol policies, and how industrial disputes were managed on site. Non-compliance could result in exclusion from Commonwealth-funded work.

What happened in 2022 and 2023

The Albanese Government was elected in May 2022 with a commitment to abolish the ABCC and repeal the Building Code. That commitment was implemented in two steps.

Step 1 - July 2022: The Code for the Tendering and Performance of Building Work Amendment Instrument 2022 stripped out most of the substantive obligations from the Building Code, leaving only requirements the BCIIP Act itself mandated (verified 2026-05-08, MinterEllison legal update).

Step 2 - December 2022 to February 2023: The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) received Royal Assent on 6 December 2022. Chapter 3 of the BCIIP Act was repealed effective 7 December 2022, which in turn repealed the Building Code in its entirety. The ABCC’s Fair Work Act enforcement role transferred to the FWO on 10 November 2022. The ABCC itself was formally abolished on 6 February 2023 (verified 2026-05-08, Fair Work Ombudsman: Abolition of ABCC and ROC).

The BCIIP Act was simultaneously renamed the Federal Safety Commissioner Act 2022 (Cth), reflecting what remained after the repeal: the Federal Safety Commissioner function and the WHS Accreditation Scheme (verified 2026-05-08).

What replaced the ABCC and the Building Code

Three bodies or mechanisms now cover the ground the ABCC and the Building Code held.

Fair Work Ombudsman (FWO): The FWO is now the general workplace law enforcer for the building and construction sector, as it is for all industries. It enforces the Fair Work Act 2009 (Cth) (verified 2026-05-08, FWO: Building and construction sector). Obligations around pay, conditions, freedom of association, sham contracting, and record-keeping sit here. This is not new law for residential builders: these obligations existed before the ABCC under the Fair Work Act.

Office of the Federal Safety Commissioner (OFSC) and WHS Accreditation Scheme: The OFSC administers the WHS Accreditation Scheme under the Federal Safety Commissioner Act 2022. The Scheme requires head contractors to hold accreditation before entering into head contracts for Commonwealth-funded building work above the scheme’s financial thresholds. It is a safety-focussed regime, separate from the former industrial-relations focus of the Building Code.

National Construction Industry Forum (NCIF): Established as a statutory advisory body under the Fair Work Act on 1 July 2023, the NCIF brings together government, unions, and industry bodies to advise on workplace relations, safety, skills, diversity, and industry culture in the building and construction sector. It has no enforcement role; it is a consultation and advisory mechanism (verified 2026-05-08, DEWR: National Construction Industry Forum).

The OFSC WHS Accreditation Scheme: when it applies

The Scheme is the main federal compliance obligation still active in the construction industry. It applies when all of the following are true:

  • The building work is directly or indirectly funded by the Commonwealth or a corporate Commonwealth entity
  • The head contract for the building work has a value of at least $4 million (GST inclusive)

For indirectly funded work (such as Housing Australia funding), additional conditions apply: the head contract must be $4 million or more (GST inclusive), and either the Commonwealth contribution is at least $6 million (GST inclusive) and represents at least 50 percent of total project funding, or the Commonwealth contribution is $10 million (GST inclusive) or more regardless of proportion (verified 2026-05-08, OFSC: Exemption 1 - below threshold).

What is exempt: residential builders and single dwelling houses

Single dwelling houses are explicitly exempt from the Scheme, regardless of contract value. The exemption covers:

  • Construction of a single-dwelling house (Class 1a under the NCC)
  • Alteration or extension of a single-dwelling house, provided it remains a single-dwelling house after the work

This exemption applies automatically. No application to the OFSC is required (verified 2026-05-08, OFSC: Exemption 2 - single dwelling houses).

For residential builders who do Commonwealth-funded multi-dwelling or non-Class-1 work above the $4 million threshold (for example, social housing apartment projects funded through Housing Australia), accreditation is required. The OFSC publishes a Residential Builders’ Guide to Audit Criteria for builders working toward Scheme accreditation (verified 2026-05-08).

What the Scheme requires (if it applies to you)

Accredited builders must have robust WHS management systems meeting the Scheme’s audit criteria. The OFSC conducts audits and, for Housing Australia Future Fund (HAFF)-related builders, covers the cost of onsite audits and provides up to 40 hours of Federal Safety Officer (FSO) assistance (verified 2026-05-08, OFSC home).

Accredited builders are also expected to apply substantially the same WHS management systems on all sites where they are the head contractor, including privately funded work.

Practical position for residential builders in 2026

For most residential builders working on private jobs:

  • The Building Code 2016 does not apply. It was repealed in December 2022.
  • The ABCC no longer exists. The FWO handles workplace law for the sector.
  • The OFSC Scheme applies only if you are a head contractor on Commonwealth-funded work at or above $4 million, and only if the work is not a single dwelling house or alteration to one.
  • Fair Work Act obligations (pay, conditions, freedom of association, sham contracting rules) continue unchanged. These predate the ABCC and are not new.
  • State WHS laws, licensing regimes, and the NCC are unaffected by these federal changes.

The clearest risk for residential builders is inadvertent sham contracting arrangements that now sit squarely under FWO scrutiny. See the sham contracting glossary entry and the FWO’s guidance on contractor classification for current detail.

What can go wrong

  • Assuming the old Code still applies: Builders who structured subcontractor arrangements under the 2016 Building Code requirements (drug and alcohol policies, right-of-entry restrictions) should note those requirements no longer exist federally. State-level requirements may still apply.
  • Missing OFSC obligations on social housing work: Residential builders picking up Housing Australia-funded projects above $4 million need accreditation if the work is not a single dwelling house. The exemption applies narrowly; a townhouse development funded through HAFF is likely not exempt.
  • Underpaying workers under the Fair Work Act: The FWO is active in the building and construction sector. Underpayment of casual loadings, minimum engagement pay, and overtime entitlements has been prosecuted in 2023 and 2024.

References

See also

Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.

Related articles