In 1978 the Fraser government decided to proceed with a new building on Capital Hill, and the Parliament House Construction Authority was created. A two-stage competition was announced, for which the Authority consulted the Royal Australian Institute of Architects and, together with the National Capital Development Commission, made available to competitors a brief and competition documents. The design competition drew 329 entries from 29 countries.
The competition winner was the Philadelphia-based architectural firm of Mitchell/Giurgola, with the on-site work directed by the Italian-born architect Romaldo Giurgola, with a design which involved burying most of the building under Capital Hill, and capping the edifice with an enormous spire topped by a large Australian flag. The façades, however, included deliberate imitation of some of the patterns of the Old Parliament House, so that there is a slight resemblance despite the massive difference of scale. The building was also designed to "sit above" Old Parliament House when seen from a distance.
Construction began in 1981, and the House was intended to be ready by Australia Day, 26 January 1988,
