Cladding Rectification Levy

An additional building permit levy is being introduced by the Victorian Government to fund rectification works by Cladding Safety Victoria. The new levy is expected to come into effect from 1 January 2020.

The 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 distributing the funds to Cladding Safety Victoria, which is managing the rectification of the highest-risk buildings.

The purpose of the levy is to keep Victorians safe by funding the rectification works for the highest-risk buildings in Victoria.

The additional levy will apply to all Class 2, 3, 4, 5, 6, 7 or 8 buildings which are not in regional Victoria.

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

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

This cost should be factored into any feasibility studies or any projects you have in the pipeline (pre-building permit), especially given the anticipated commencement of the final legislation is prior to the end of the year.