Legislative Update: Cladding Levy Changes on the Building Activity Management System

The Victorian Government recently announced a program of cladding rectification works to fund over 500 buildings in Victoria that are deemed to be high-risk due to the existence of flammable cladding materials. Half of the program will be funded through a temporary increase in the levy charged for building works for specific buildings, locations and cost of works.

The additional cladding levy increase will take effect from 1 January 2020 and will only apply to permit applications and amendments that apply to the below;

  • site addresses located in municipalities in metropolitan Melbourne
  • building classes 2 to 8, where this is the primary building class
  • building permits that do not belong to any of the following categories:
    i. social housing projects delivered by the Director of Housing, or
    ii. a program approved by the Director of social housing, or
    iii. social housing exempted by the VBA in consultation with the Director of Housing
  • estimated cost of works amounts of more than $10,000
As a result, the Victorian Building Authority (VBA) will need to update its Building Activity Management System (BAMS) to reflect the mandatory levy increase. Additional cladding levy changes are likely to be made to BAMS after the legislative commencement date to improve the user experience – details to be determined.

Further information can be found on the VBA website.

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