Cladding rectification levy - guidance information

Cladding Rectification Levy criteria

From 1 February 2021 the CRL will apply to all Building Permit Number (BPN) applications submitted (through BAMS) on or after 1 January 2020 that meet all of the following criteria:

The Building Permit is for a building:

  • that is not, or will not be, in regional Victoria
  • that is, or will be of any of classes 2 to 8; and
  • that has a cost of whole of building works that relate to class 2 to 8 of $800,000 or more.

An application for a building permit must specify the CoW and the following information:

  • whether the building work relates to more than one class of building,
  • if the building work relates to more than one class of building, it must specify each class of building that the building work relates to; and
  • if the building work relates to more than one class of building, and those classes of building include one or more class of 2 to 8 and a class 1, 9 or 10 building, it must state:
    1. the cost of the building work that relates to the class or classes of 2 to 8 building; and
    2. the cost of the building work that relates to the class 1, 9 or 10 building.

Providing information on building works that are more than one class and providing the estimated CoW breakdown by Building Codes of Australia (BCA) Classification (click here for a guide on how to do this) is required to enable the CRL to be calculated. The information enables the VBA to calculate the CRL for only the components of the building works that relate to Classes 2 to 8.

What software changes must be made?

To be best prepared, you should work to make these software changes before 1 February 2021.

  1. Before 1 February 2021, building permit systems must comply with the new comma-separated values (CSV) file data layout by adding the new fields listed below (under point 2 and 3) into the CSV files generated. The software providers need to ensure the appropriate data validation rules are coded into the RBS’s systems.
  1. The following data is required as part of the BAMS Portal form (for single applications), and the BPN application and amendment CSV file data layout (for bulk uploads):
  • BCA Classification 1 (previously Primary BCA Classification)
  • Total Estimated Cost of Works - Class 2 to 8, required for staged permits
  • Total Estimated Cost of Works - Class 1 or 9 or 10, required for staged permits
  • Estimated Cost of Works for 1st reported BCA Class
  • Estimated Cost of Works for 2nd reported BCA Class, if applicable
  • Estimated Cost of Works for 3rd reported BCA Class, if applicable
  • Estimated Cost of Works for 4th reported BCA Class, if applicable
  • Estimated Cost of Works for 5th reported BCA Class, if applicable

From 1 February 2021, BPN applications with building work associated with BCA Class 2 to 8 are expected to provide the estimated CoWs breakdown by the building work's BCA Class. If it’s a staged building permit, the estimated CoW breakdown of that building work’s BCA Class 2 to 8 will need to be provided for that specific stage and not for the total project.

To recalculate the levy on building permit number applications on and from 1 January 2020, but prior to 1 February 2021, an amendment to the building permit will need to be issued providing the estimated CoWs breakdown by the building work's BCA Class 2 to 8. This can be completed at any time after 1 February 2021.

  1. Please add the following fields to your BPN applications or amended BPN applications through BAMS:
  • General Levy Exemption
  • Domestic Building Dispute Resolution Victoria (DBDRV) Levy Exemption
  • Cladding Levy Exemption

We are building this functionality into the system to allow you to easily apply for any exemptions you become eligible for. We’ll have more information on exemptions in the coming months.

What if you are not able to make the software changes by 1 February 2021?

You should also work with your software provider to update your systems with specific software changes. Click here to find out what software changes should be made before 1 February 2021.

If you are unable to make the software changes by 1 February 2021, the VBA BAMS team will work with you to ensure that applications and amendments can still be reported into BAMS.

The VBA has developed a macro enhanced spreadsheet that inserts the new data fields or columns into existing BPN Application and Amendment CSV files. The manual modification of the CSV file may unfortunately cause delays in the BPN application process, which is why we highly recommend making these software changes before the deadline.

If you are unable to meet the 1 February 2021 timeframe, access the updated BAMS Technical Specifications and the Guide to using the Excel Macro for adding new columns (PDF, 744.88 KB).

This page was last updated on 3 March 2021.

Frequently asked questions

The cladding rectification levy (CRL) changes commence on 1 February 2021 and will apply retrospectively from 1 January 2020.

The CRL changes will affect building permit number (BPN) applications to the VBA on or after 1 January 2020.

From 1 February 2021 the CRL will apply to all building permit number (BPN) applications submitted through BAMS on or after 1 January 2020 that meet the following criteria:

  • The Building Permit is for a building:
    • that is not, or will not be, in regional Victoria
    • that is, or will be of any of classes 2 to 8; and
    • that has a cost of building works that relate to class 2 to 8 of $800,000 or more.

CRL may be payable if a Building Permit Number (BPN) application submitted through BAMS on or after 1 January 2020 meets the following criteria:

  • The Building Permit is for a building:
    • that is not, or will not be, in regional Victoria
    • that is, or will be of any of classes 2 to 8; and
    • that has a cost of whole of building works of $800,000 or more.

You may be entitled to a refund of CRL paid on certain building works if you paid the building permit levy before 1 February 2021.

In order for the VBA to calculate the total amount of CRL owed, you must provide the estimated cost of works (CoW) breakdown by Building Codes of Australia (BCA) Classification. If the amount owed is less than what you’ve already paid, you may be entitled to a partial CRL refund.

You must provide a breakdown of the estimated cost of works (CoW) by each BCA Classification of the building works in BAMS. This will allow the VBA to calculate the CRL for components of the building works that relate to Classes 2 to 8.

We'll have more information on exemption eligibility in the coming months.

To be best prepared, you should work to make these software changes before 1 February 2021 .

  1. Before 1 February 2021, building permit systems must comply with the new comma-separated values (CSV) file data layout by adding the new fields listed below (under point 2 and 3) into the CSV files generated. The software providers need to ensure the appropriate data validation rules are coded into the RBS’s systems.
  2. The following data is required as part of the BAMS Portal form (for single applications), and the BPN application and amendment CSV file data layout (for bulk uploads):
    • BCA Classification 1 (previously Primary BCA Classification)
    • Total Estimated Cost of Works - Class 2 to 8, required for staged permits
    • Total Estimated Cost of Works - Class 1 or 9 or 10, required for staged permits
    • Estimated Cost of Works for BCA Class 1
    • Estimated Cost of Works for BCA Class 2, if applicable
    • Estimated Cost of Works for BCA Class 3, if applicable
    • Estimated Cost of Works for BCA Class 4, if applicable
    • Estimated Cost of Works for BCA Class 5, if applicable

From 1 February 2021, all BPN applications are expected to provide the estimated CoWs breakdown by the building work's BCA Classification. If it’s a staged building permit, the estimated CoW breakdown of that building work’s BCA Classification will need to be provided for that specific stage and not for the total project.

To recalculate the levy on building permit number applications on and from 1 January 2020, but prior to 1 February 2021, an amendment to the building permit will need to be issued providing the estimated CoWs breakdown by the building work's BCA Classification. This can be completed at any time after 1 February 2021.

  1. The following data is required as part of the BAMS Portal form (for single applications), and the BPN application and amendment CSV file data layout (for bulk uploads):
  • General Levy Exemption
  • Domestic Building Dispute Resolution Victoria (DBDRV) Levy Exemption
  • Cladding Levy Exemption

We are building this functionality into the system to allow you to easily apply for any exemptions you become eligible for. We’ll have more information on exemptions in the coming months.

Find out more about the updated BAMS Technical Specifications here.

You should also work with your software provider to update your systems with specific software changes. Click here to find out what software changes should be made before 1 February 2021.

If you are unable to make the software changes by 1 February 2021, the VBA BAMS team will work with you to ensure that applications and amendments can still be reported into BAMS.

The VBA has developed a macro enhanced spreadsheet that inserts the new data fields or columns into existing BPN Application and Amendment CSV files. The manual modification of the CSV file may unfortunately cause delays in the BPN application process, which is why we highly recommend making these software changes before the deadline.

If you are unable to meet the 1 February 2021 timeframe, access the updated BAMS Technical Specifications and the Guide to using the Excel Macro for adding new columns (PDF, 744.88 KB).