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Cladding Safety Victoria

August 20, 2019

The Victorian Government has set up a new authority Cladding Safety Victoria, to provide support and guidance to building owners and occupants faced with removing combustible cladding and reducing risks. As part of the announcement the Government has indicated it will establish a clear process around cladding rectification works in high risk buildings which HIA views as a positive step.

Cladding Safety Victoria will manage the funding of the cladding rectification works and have some involvement in the management of this process. An initial allocated amount of $600 million from government and other sources will assist with commencing remedial works on prioritised high risk buildings. New CEO Dan O’ Brien is now on board and HIA is meeting with him in the near future to raise member issues.

The Government’s announcement will provide a way forward and greater certainty for existing building owners. There is still a lack of certainty about how the new agency will operate and work with owners and building practitioners though. In the longer term this announcement may see an increase to the building permit levy on high rise residential and commercial developments, which will increase the cost to businesses and new apartment buyers. It should be noted that detached homes and all other class 1 buildings are not penalised by any increase in the levy and are exempted. Whilst the initial contribution from government to kick start the works is welcomed, the buildings requiring rectification have been constructed over many years and it may be more equitable if government was to fund all remediation works rather than place these costs on future new owners.

Read HIA’s Media Release

Read more about Cladding Safety Victoria