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Cladding Rectification Levy

Updated: Jul 20, 2023

From the 1st of January 2020, building works in metropolitan areas with a cost of works over $800,000 and a classification of 2 - 8 under the National Construction Code will be subject to a new cladding rectification levy.

This levy is being introduced by the Victorian Government to fund cladding rectification works for buildings that have been found to have the highest fire safety risk.

The levy will not apply to stand-alone houses or other class 1 buildings.

The additional levy (on top of the standard levies) proposed are:

Cents in every dollar Construction Costs

0.128 $800,000 or more but less than $1,000,000

0.256 $1,000,000 or more but less than $1,500,000

0.820 $1,500,000 or more

The Victorian Building Authority (VBA) is responsible for collecting the levy as part of the Building Permit Number application process through the Building Activity Management System (BAMS) and then pass on the funds to Cladding Safety Victoria, which is responsible for managing the rectification of the highest-risk buildings.

It is estimated that the levy will raise $300 million over 5 years.

For more information head to the FAQ section on the VBA website by clicking here


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