Building Reform Levy: keep project budgets comparable

In effect: 1 July 2026 to 30 June 2029

The BPC says the Building Reform Levy replaces the cladding levy component for certain building types in non-regional Victoria. It applies to relevant class 2–8 works costing at least $1.5 million, with specified exemptions. Class 1, 9 and 10 work is excluded from this component. The official guidance sets the rate and explains whole-project and staged-work calculations.

What this means for your project

This is not a universal new surcharge on every house demolition. Ask your surveyor to identify the building classification and relevant project cost before including it in a feasibility spreadsheet. Keep contractor removal costs, disconnections, consultant services and statutory charges in separate budget lines. That makes quotes easier to compare when two proposals include different administrative responsibilities. We recommend recording who pays each charge and what assumptions the allowance uses, rather than inserting an unverified flat percentage into the demolition quote.

Questions before you commit

• Which building classes and project components are involved?
• Has the surveyor confirmed any levy and exemption in writing?
• Are statutory charges included, excluded or provisional in the contractor’s price?

Bring these questions to your appointed project team. Exccell can discuss the demolition boundary and inspection scope; the responsible professionals must confirm the design, approvals and specialist work for your address.