In July 2019, the State Government announced its intention to address combustible cladding through a program of grants to fund rectification works for high-risk buildings. The proposed funding arrangements for the grants include the introduction of changes to the building permit levy to raise $300 million (representing half of the $600 million funding announced) over the next five years.

Amendments to the Building Act 1993 in the Building Amendment (Cladding Rectification) Act 2019 will provide for the building permit levy to include an additional cladding levy component. This component is known as the cladding rectification levy. These amendments will commence on 1 January 2020.

To estimate the cladding rectification levy payable, use our Building permit levy calculator.

Provisions that require building surveyors to calculate the amount of levy payable when applying for a building permit number have been repealed, removing some of the regulatory burden on relevant building surveyors (RBS). It is important to note that an RBS will still be required to provide the VBA with information relating to prescribed events each month.

To find out more information on the legislative changes underpinning the additional levy, view the Building Amendment (Cladding Rectification) Act 2019 and Cladding Safety Victoria Act 2020 on the Victorian Legislation and Parliamentary Documents website.