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Cladding rectification levy expected to commence on 1 January 2020

Building permit levy
An additional building permit levy is being introduced by the Victorian Government to fund rectification works by Cladding Safety Victoria.

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 VBA has been advised by DELWP that the cladding rectification levy is expected to commence on 1 January 2020.

The purpose of the levy is to keep Victorians safe by funding the rectification works for the highest-risk buildings in Victoria. The new cladding levy will impact non-regional buildings of BCA classes 2 to 8, where the cost of works is at least $800,000.

Work to update BAMS to reflect the new legislation has already commenced, while a new online levy calculator will be available on the VBA website in early 2020 to provide an indication of the total levy payable.

At this time, we estimate three per cent of all building permits will attract the additional levy.