Cladding Safety Victoria Act 2020

The Cladding Safety Victoria Act 2020 establishes a statutory agency, Cladding Safety Victoria (CSV), to administer a cladding rectification program and to manage related financial assistance, procurement and monitoring for buildings affected by non‑compliant or non‑conforming external wall cladding products. The Act sets out CSV’s object (to support Victorians to rectify such cladding to improve building safety) and gives CSV a broad set of functions including prioritising buildings, registering owners and owners corporations, deciding and paying grants of financial assistance under funding agreements, monitoring funded rectification, procuring building practitioners and engaging technical, design and project management services, and facilitating rectification on government buildings (ss 6-7). CSV is a body corporate representing the Crown (ss 5(2), 9).

The Act creates a governing board (the CSV board), prescribes appointment, tenure and removal rules for members and the chair, provides for a chief executive officer employed under the Public Administration Act 2004, and allows CSV to employ staff and contract services (ss 10-24). The Minister has general direction and control; CSV must comply with ministerial directions (s 25). CSV must prepare a four‑year strategic plan within three months and annual work programs by 30 June each year; these require Ministerial approval and are enforceable by Ministerial directions under s 34 (ss 32-34).

CSV’s operational processes for the rectification program are specified in outline. Municipal building surveyors may notify CSV of buildings they consider require cladding rectification work and must provide supporting information in a prescribed form (s 27). CSV must prioritise such notified buildings in accordance with prescribed criteria and other prescribed requirements (s 28). CSV may invite owners or owners corporations of prioritised buildings to apply to register for potential financial assistance and must consider prescribed matters when deciding whether to accept an application (s 29). On acceptance, CSV must decide whether to grant or refuse financial assistance, in accordance with any prescribed process; it may assess buildings, request information, and must enter funding agreements in the prescribed form where assistance is granted (s 30). CSV must notify various bodies when funded rectification is completed (s 31).

Version No. 004

Cladding Safety Victoria Act 2020

No. 31 of 2020

Version incorporating amendments as at
2 December 2024

TABLE OF PROVISIONS

Section Page

Part 1—Preliminary 1

1 Purposes 1

2 Commencement 2

3 Definitions 3

4 Application of Act to the Crown and public authorities 5

Part 2—Cladding Safety Victoria 6

Division 1—Establishment, functions and powers 6

5 Establishment of Cladding Safety Victoria 6

6 Object of Cladding Safety Victoria 6

7 Functions of Cladding Safety Victoria 7

8 Delegation by Cladding Safety Victoria 8

9 Cladding Safety Victoria represents the Crown 9

Division 2—CSV board 9

10 CSV board 9

11 Appointment of CSV board members 9

12 When chairperson or deputy chairperson ceases to hold office 11

13 When CSV board member ceases to be a member 11

14 Minister may remove CSV board members 11

15 Resignation of CSV board member 12

16 When deputy chairperson is required to act as chairperson 12

17 Minister may appoint CSV board member to act as deputy chairperson 13

18 Minister may appoint person to act as CSV board member 13

19 Validity of acts and decisions of the CSV board 14

20 Proceedings of the CSV board 14

21 Pecuniary interests and conflicts of interest of CSV board members 15

22 Personal liability 17

Division 3—Chief executive officer and staff 17

23 Chief executive officer 17

24 Staff 18

Division 4—Ministerial direction 18

25 Direction and control of the Minister 18

Division 5—Complaints 19

26 Complaints to Cladding Safety Victoria 19

Part 3—Financial assistance for cladding rectification work 20

27 Notification of buildings requiring cladding rectification work 20

28 Prioritisation of buildings for potential financial assistance 20

29 Applications to register owners and owners corporations of buildings for potential financial assistance 21

30 Grants of financial assistance 22

31 Notice of completion of cladding rectification work 23

Part 4—Reporting and financial provisions 24

Division 1—Reporting obligations 24

32 Strategic plan 24

33 Annual work program 24

34 Compliance with strategic plan and annual work program 25

35 Information to be included in report of operations 26

36 Record keeping 26

37 Information sharing 27

38 Improper use of information 28

39 Prohibition on disclosure of certain information 28

Division 2—Financial powers 29

40 Cladding Safety Victoria may invest funds 29

41 Cladding Safety Victoria may engage agent in carrying out functions 29

42 Cladding Safety Victoria funding 29

Part 5—General 31

43 Regulations 31

45 Review of this Act 33

Part 6—Transitional provisions 34

46 Definitions 34

47 Transfer of staff from the Authority to Cladding Safety Victoria 34

48 Chief executive officer 36

49 Transfer of property, rights and liabilities of the Authority to Cladding Safety Victoria 36

50 Substitution of parties to agreements 38

51 Existing matters before the Authority 38

52 Validity of things done under this Part 38

Part 7—Amendment of Building Act 1993 40

53 Limitation on time when building action may be brought 40

54 Subrogation 41

55 Functions of the Authority 41

56 Payments into the Cladding Safety Victoria account 42

57 Payments out of the Cladding Safety Victoria account 42

57A Building permit levy must be paid 42

57B Building permit application must contain information about cost of building work 42

57C Relevant building surveyor must refuse a permit in certain circumstances 43

57D Calculation and notification of levy 43

57E Authority may reassess levy after building permit issued 44

57F Authority to give notice of refund 45

58 Information sharing 45

58A New section 277A inserted 45

Part 8—Amendment of Public Administration Act 2004 47

59 Persons with functions of public service body Head 47

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Endnotes 48

1 General information 48

2 Table of Amendments 50

3 Explanatory details 51

Version No. 004

Cladding Safety Victoria Act 2020

No. 31 of 2020

Version incorporating amendments as at
2 December 2024

The Parliament of Victoria enacts:

Part 1—Preliminary

1 Purposes

The purposes of this Act are—

(a) to establish a body corporate called Cladding Safety Victoria for the purposes of administering a cladding rectification program, including the facilitation of cladding rectification work for government buildings; and

(b) to enable Cladding Safety Victoria to prioritise buildings for potential financial assistance for cladding rectification work and register owners and owners corporations of those buildings; and

(c) to enable Cladding Safety Victoria to determine the amounts of financial assistance for cladding rectification work and make payment for those amounts under funding agreements; and

(d) to allow Cladding Safety Victoria to provide guidance to owners and owners corporations of buildings and other persons and bodies in relation to cladding rectification work in order to mitigate risk; and

(e) to create sufficient regulation-making powers in relation to the exercise of Cladding Safety Victoria's functions, including the prioritisation of buildings and registration of owners and owners corporations, payments to owners and owners corporations and the entering into of funding agreements; and

(f) to amend the Building Act 1993—

(i) to transfer functions in relation to cladding rectification work from the Victorian Building Authority to Cladding Safety Victoria; and

(ii) to require the Victorian Building Authority to pay to Cladding Safety Victoria monies collected relating to the building permit levy payable under section 205G(2A) of that Act; and

(iii) to amend the limitation period for specified building actions relating to non-compliant or non-conforming external wall cladding products; and

(iv) to provide for the subrogation of the Crown to the rights and remedies of owners and owners corporations of buildings to whom financial assistance is given; and

(g) to amend the Public Administration Act 2004 to confer the functions of a public service body Head on the chairperson of Cladding Safety Victoria.

2 Commencement

(1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2) If a provision of this Act does not come into operation before 1 July 2021, it comes into operation on that day.

3 Definitions

In this Act—

Authority means the Victorian Building Authority established under section 193 of the Building Act 1993;

building practitioner has the same meaning as in the Building Act 1993;

building work has the same meaning as in the Building Act 1993;

chairperson means the member appointed as chairperson of the CSV board under section 11;

chief executive officer means the person appointed as chief executive officer of Cladding Safety Victoria under section 23;

cladding rectification work has the same meaning as in the Building Act 1993;

council means a council within the meaning of the Local Government Act 2020;

CSV board means the Cladding Safety Victoria board established under section 10;

deputy chairperson means the member appointed as deputy chairperson of the CSV board under section 11;

government building means a building owned by the Crown in the right of the State of Victoria or a public authority;

municipal building surveyor means—

(a) a municipal building surveyor within the meaning of the Building Act 1993; or

(b) the Authority, where—

(i) the Authority has been declared to have any of the functions of a municipal building surveyor under section 190 of the Building Act 1993 in relation to a relevant building; or

(ii) a council has entered into an agreement under section 214 of the Building Act 1993 with the Authority in respect of the carrying out by the Authority of any of the functions of the municipal building surveyor of the council in relation to a relevant building;

non-compliant or non-conforming external wall cladding product has the same meaning as in the Building Act 1993;

owner has the same meaning as in the Building Act 1993;

owners corporation has the same meaning as in the Owners Corporation Act 2006;

public authority means a body established for a public purpose by or under an Act but does not include a council.

4 Application of Act to the Crown and public authorities

This Act—

(a) binds the Crown in right of the State of Victoria and, so far as the legislative power of Parliament permits, the Crown in all its other capacities; and

(b) applies to public authorities and to councils.

Part 2—Cladding Safety Victoria

Division 1—Establishment, functions and powers

5 Establishment of Cladding Safety Victoria

(1) Cladding Safety Victoria is established.

(2) Cladding Safety Victoria—

(a) is a body corporate with perpetual succession; and

(b) has an official seal; and

(d) is capable of acquiring, holding and disposing of real and personal property; and

(e) is capable of doing or suffering anything which by law a body corporate may do or suffer.

(3) The official seal must be kept as directed by Cladding Safety Victoria and must not be used except as authorised by Cladding Safety Victoria.

(4) All courts must take judicial notice of the official seal on a document and, until the contrary is proved, must presume that the document was properly sealed.

6 Object of Cladding Safety Victoria

The object of Cladding Safety Victoria is to support Victorians to rectify non-compliant or non-conforming external wall cladding products on buildings to improve the safety of those buildings.

7 Functions of Cladding Safety Victoria

(1) Cladding Safety Victoria has the following functions—

(a) to administer a cladding rectification program, including—

(i) prioritising buildings for potential financial assistance for cladding rectification work and registering owners and owners corporations of those buildings; and

(ii) deciding whether to grant or refuse to grant financial assistance to owners and owners corporations of buildings; and

(iii) determining the amounts of financial assistance for cladding rectification work and making payment for those amounts under funding agreements; and

(iv) monitoring cladding rectification work where financial assistance has been given; and

(v) supporting owners and owners corporations of buildings by procuring building practitioners to undertake cladding rectification work; and

(vi) supporting owners and owners corporations of buildings by engaging technical design and project management services for cladding rectification work and providing other services directed by the Minister relating to cladding rectification work before and after funding agreements are entered into; and

(vii) facilitating cladding rectification work for government buildings;

(b) to provide information, advice and support to owners and owners corporations of buildings and other persons and bodies in relation to cladding rectification work;

(c) to notify the appropriate regulators, municipal building surveyors, persons and bodies about matters relating to compliance and enforcement under this Act, the Building Act 1993 or any other Act;

(d) to advise the Minister on the performance of its functions under this Act or any other Act, including a right of subrogation conferred on the Crown under section 137F of the Building Act 1993, and on any other matters referred to it by the Minister;

(e) to perform any other function conferred on Cladding Safety Victoria by or under this or any other Act, including under any agreement to which the State is a party.

(2) In performing its functions, Cladding Safety Victoria must—

(a) engage with owners and owners corporations of buildings and other affected persons and bodies; and

(b) efficiently deal with any complaints relating to the performance of its functions.

(3) Cladding Safety Victoria may cease to perform any of its functions with the approval of, or at the direction of, the Minister.

(4) Cladding Safety Victoria has all powers necessary to achieve its object and perform its functions.

8 Delegation by Cladding Safety Victoria

(1) Subject to subsection (2), Cladding Safety Victoria may by instrument delegate to any person any of its functions, duties or powers except—

(a) this power to delegate; and

(b) the power to appoint the chief executive officer.

(2) A person to whom a function, duty or power has been delegated under subsection (1) may sub-delegate the function, duty or power to another person if the instrument of delegation authorises its sub-delegation.

9 Cladding Safety Victoria represents the Crown

In performing its functions and duties and exercising its powers, Cladding Safety Victoria represents the Crown.

Division 2—CSV board

10 CSV board

(1) Cladding Safety Victoria has a governing body known as the Cladding Safety Victoria board.

(2) The CSV board consists of not less than 3 but no more than 7 members appointed by the Minister under section 11.

11 Appointment of CSV board members

(1) The Minister must appoint each member of the CSV board, including—

(a) a member who is to be the chairperson; and

(b) a member who is to be the deputy chairperson.

(2) In appointing members of the CSV board under this section and acting members under section 18, the Minister must ensure that—

(a) at least one member has qualifications or experience in building or construction; and

(b) each member has skills, knowledge or experience in relation to at least one of the following—

(i) regulation of the building industry;

(ii) public engagement and communications;

(iii) risk management;

(iv) public administration or governance;

(v) financial or program management;

(vi) strategic planning;

(vii) legal practice; and

(c) collectively, the members have skills, knowledge or experience in relation to the matters listed in paragraph (b)(i) to (vii).

(3) A member of the CSV board holds office—

(a) for the period, not exceeding 3 years, specified in the instrument of appointment; and

(b) on the terms and conditions, including remuneration, allowances and payment of expenses, specified in the instrument of appointment.

(4) If a person ceases to be a member of the CSV board under section 13 before the end of the member's period of appointment, the Minister may appoint a new member to hold office for the remainder of the member's period of appointment.

(5) A member of the CSV board may be re-appointed once.

12 When chairperson or deputy chairperson ceases to hold office

A person appointed to be the chairperson or the deputy chairperson of the CSV board ceases to hold that office upon ceasing to be a member of the CSV board under section 13.

13 When CSV board member ceases to be a member

A person ceases to be a member of the CSV board if the person—

(a) becomes an insolvent under administration; or

(b) is convicted or found guilty of—

(i) an indictable offence; or

(ii) an offence that, if committed in Victoria, would be an indictable offence; or

(d) retires or resigns under section 15; or

(e) dies.

14 Minister may remove CSV board members

The Minister may remove a member of the CSV board from office at any time if the member—

(a) becomes incapable of performing the duties of a member; or

(b) is negligent in performing those duties; or

(d) contravenes section 21(1); or

(e) is convicted or found guilty of an offence under this Act or any offence involving dishonesty, fraud, drug trafficking or violence; or

(f) is no longer suitable to hold office as a member for any other reason.

15 Resignation of CSV board member

A member of the CSV board may resign by delivering a signed letter of resignation to the Minister.

16 When deputy chairperson is required to act as chairperson

(1) The deputy chairperson must act as chairperson—

(a) during any period when the office of the chairperson is vacant; or

(b) during any period when the chairperson is absent; or

(i) to attend meetings of the CSV board; or

(ii) to perform the duties of the chairperson.

(2) If the deputy chairperson is acting as chairperson under subsection (1), the deputy chairperson—

(a) may exercise all the powers of the chairperson; and

(b) must perform all the functions and duties of the chairperson; and

(c) is entitled to receive the remuneration, allowances and payment of expenses to which the chairperson would have been entitled.

17 Minister may appoint CSV board member to act as deputy chairperson

(1) The Minister may appoint a member of the CSV board to act as deputy chairperson—

(a) during any period when the office of the deputy chairperson is vacant; or

(b) during any period when the deputy chairperson is absent; or

(d) if the deputy chairperson is unable, for any other reason—

(i) to attend meetings of the CSV board; or

(ii) to perform the duties of the deputy chairperson.

(2) If a member of the CSV board is acting as deputy chairperson under subsection (1), the member—

(a) may exercise all the powers of the deputy chairperson; and

(b) must perform all the functions and duties of the deputy chairperson; and

(c) is entitled to receive the remuneration, allowances and payment of expenses to which the deputy chairperson would have been entitled.

18 Minister may appoint person to act as CSV board member

(1) The Minister may appoint a person to act as a member of the CSV board, for a period not exceeding 6 months—

(a) during any period when there are fewer than the maximum number of members permitted under section 10; or

(b) during any period when a member is absent; or

(d) if a member is unable, for any other reason—

(i) to attend meetings of the CSV board; or

(ii) to perform the duties of a member.

(2) If a person is acting as a member of the CSV board under subsection (1), the person—

(a) may exercise all the powers of a member of the CSV board; and

(b) must perform all the functions and duties of a member of the CSV board; and

(c) is entitled to receive the remuneration, allowances and payment of expenses to which a member would have been entitled.

19 Validity of acts and decisions of the CSV board

An act or a decision of the CSV board is not invalid merely because—

(a) there are fewer than the maximum number of members permitted under section 10; or

(b) there is a defect or irregularity in the appointment of a member; or

20 Proceedings of the CSV board

(1) Meetings of the CSV board must be held at the times and places determined by the CSV board.

(2) A majority of the members of the CSV board, of whom one member must be the chairperson or deputy chairperson, constitutes a quorum of the CSV board.

(3) For the purposes of subsection (2), if both the chairperson and the deputy chairperson are unable to attend a meeting of the CSV board, the members present at the meeting may elect a member, by a majority of votes, to act as the chairperson for that meeting.

(4) A question arising at a meeting of the CSV board must be resolved by—

(a) a majority of votes of all members present and voting on the question, including the member chairing the meeting; or

(b) if there is no majority under paragraph (a) due to an equal number of votes for and against a resolution, a casting vote of the member chairing the meeting.

(5) A meeting of the CSV board may be held with the use of telephone, video conference or other means of communication that do not require the physical presence of each member at the same location.

(6) The member chairing a meeting must ensure that minutes of the meeting are kept.

(7) Subject to this Act, the CSV board may regulate its own proceedings.

21 Pecuniary interests and conflicts of interest of CSV board members

(1) A member of the CSV board who has a direct or indirect pecuniary interest or a conflict of interest in a matter being considered or to be considered by the CSV board must disclose the nature of that interest at a meeting of the CSV board as soon as practicable after the member has knowledge of the relevant facts.

Penalty: 60 penalty units.

(2) For the purposes of subsection (1), a member of the CSV board does not have a pecuniary interest or a conflict of interest in a matter merely because the member is engaged in—

(a) the building industry; or

(b) any matter connected with the building industry.

(3) Without limiting the circumstances where a member has a pecuniary interest or a conflict of interest, for the purposes of subsection (1) a member is taken to have a pecuniary interest or a conflict of interest in a matter relating to a building or building work if the member—

(a) is or was involved in designing that building; or

(b) assisted in preparing or making an application for a building permit or an occupancy permit under the Building Act 1993 for that building or building work; or

(c) is or was the relevant building surveyor within the meaning of the Building Act 1993 in respect of an application for a permit for that building or building work.

(4) A member of the CSV board who has made a disclosure under subsection (1) must not be present during, or otherwise take part in, any deliberation of or vote on that matter.

Penalty: 60 penalty units.

(5) If a member of the CSV board has made a disclosure under subsection (1), the member chairing the meeting must ensure that the disclosure is recorded in the minutes of the meeting.

22 Personal liability

(1) A member of the CSV board is not personally liable for anything done or omitted to be done in good faith—

(a) in the exercise of a power or the discharge of a duty under this Act or the regulations; or

(b) in the reasonable belief that the act or omission was in the exercise of a power or the discharge of a duty under this Act or the regulations.

(2) Any liability resulting from an act or omission that would but for subsection (1) attach to a member of the CSV board attaches instead to Cladding Safety Victoria.

Division 3—Chief executive officer and staff

23 Chief executive officer

(1) The CSV board may appoint a person to be the chief executive officer of Cladding Safety Victoria.

(2) The chief executive officer of Cladding Safety Victoria is to be employed under Part 3 of the Public Administration Act 2004.

(3) The CSV board must not appoint a person to be the chief executive officer if, under the Building Act 1993, the person is—

(a) a Commissioner of the Victorian Building Authority Board; or

(b) a member of the Building Appeals Board; or

(d) a member of the Plumbing Advisory Council.

(4) The chief executive officer appointed under subsection (1)—

(a) is responsible to the CSV board for the day‑to-day management of Cladding Safety Victoria; and

(b) may attend a meeting of the CSV board if invited by the CSV board, but must not vote at the meeting.

(5) The CSV board may direct the chief executive officer not to attend a meeting of the CSV board.

24 Staff

(1) There may be employed under Part 3 of the Public Administration Act 2004 any employees that are necessary to enable Cladding Safety Victoria to perform its functions.

(2) For the purposes of performing its functions, Cladding Safety Victoria may—

(a) enter into agreements or arrangements for the use of the services of any staff of a Department, statutory authority or other public body; and

(b) engage any persons as contractors or consultants.

Division 4—Ministerial direction

25 Direction and control of the Minister

(1) Cladding Safety Victoria is subject to the general direction and control of the Minister.

(2) Cladding Safety Victoria must comply with any direction of the Minister, including a direction to give any information or assistance the Minister requires.

Division 5—Complaints

26 Complaints to Cladding Safety Victoria

(1) Any person may complain in writing to Cladding Safety Victoria about the performance of its functions or duties or the exercise of its powers under this Act or any other Act.

(2) If Cladding Safety Victoria receives a complaint under this section it must—

(a) consider the complaint; and

(b) give a written report to the complainant of its consideration of the complaint.

(3) Cladding Safety Victoria must consider any complaints in accordance with the prescribed process.

Part 3—Financial assistance for cladding rectification work

27 Notification of buildings requiring cladding rectification work

(1) A municipal building surveyor may notify Cladding Safety Victoria of a building (other than a government building) that the municipal building surveyor considers requires cladding rectification work.

(2) A municipal building surveyor must include in a notification under subsection (1) any information supporting the municipal building surveyor's opinion that a building requires cladding rectification work.

(3) Cladding Safety Victoria may request the municipal building surveyor to provide any further information that is reasonably necessary.

(4) A notification under subsection (1) must be in the prescribed form.

28 Prioritisation of buildings for potential financial assistance

(1) Cladding Safety Victoria must prioritise for potential financial assistance any buildings in respect of which it has been notified by a municipal building surveyor under section 27 as requiring cladding rectification work.

(2) Cladding Safety Victoria must have regard to the prescribed criteria when prioritising a building for potential financial assistance for cladding rectification work.

(3) Cladding Safety Victoria must prioritise a building for potential financial assistance for cladding rectification work in accordance with any other prescribed requirements.

29 Applications to register owners and owners corporations of buildings for potential financial assistance

(1) Cladding Safety Victoria may invite in writing the owner or owners corporation of a building that has been prioritised under section 28 to apply to register for potential financial assistance for cladding rectification work.

(2) After considering an application to register an owner or owners corporation of a building for potential financial assistance, Cladding Safety Victoria may accept or refuse to accept the application.

(3) Cladding Safety Victoria must consider the prescribed matters when deciding whether to accept or refuse to accept the application.

(4) Cladding Safety Victoria may request an applicant to provide any information that it considers necessary to assist in deciding whether to accept an application to register.

(5) An applicant must take reasonable steps to provide any information requested under subsection (4).

(6) Cladding Safety Victoria may refuse to accept an application if the applicant does not provide any further information required under subsection (4).

(7) Cladding Safety Victoria must notify an applicant whether the application is accepted or refused within 14 days of making the decision.

(8) If Cladding Safety Victoria refuses to accept an application, a notice under subsection (7) must include reasons for the decision.

(9) An application to register an owner or owners corporation of a building for potential financial assistance must be made—

(a) in the prescribed form and include the prescribed information; and

(b) in accordance with any other prescribed requirements.

30 Grants of financial assistance

(1) On accepting an application to register the owner or owners corporation of a building for potential financial assistance for cladding rectification work, Cladding Safety Victoria must decide whether to grant or refuse to grant financial assistance to the owner or owners corporation of the building.

(2) Subject to this section, a decision of Cladding Safety Victoria to grant or refuse to grant financial assistance must be made in accordance with any prescribed process.

(3) In deciding whether to grant or refuse to grant financial assistance, Cladding Safety Victoria may assess the building to determine the extent of the cladding rectification work that is required to mitigate the risks associated with any non‑compliant or non-conforming external wall cladding product.

(4) Cladding Safety Victoria may request the applicant to provide any information that it considers necessary to assist in deciding whether to grant financial assistance.

(5) Cladding Safety Victoria must notify an applicant whether financial assistance is granted or refused within 14 days of making the decision.

(6) If Cladding Safety Victoria refuses to grant financial assistance, a notice under subsection (5) must include reasons for the decision.

(7) After Cladding Safety Victoria makes a decision to grant financial assistance under this section, it must enter into a funding agreement with the owner or owners corporation of the building.

(8) A funding agreement must be in the prescribed form and contain the prescribed terms and conditions.

31 Notice of completion of cladding rectification work

Cladding Safety Victoria must notify the following of the completion of any cladding rectification work in respect of a building under a funding agreement—

(a) the Minister;

(b) the Authority;

(d) any prescribed agency.

Part 4—Reporting and financial provisions

Division 1—Reporting obligations

32 Strategic plan

(1) Within three months of the commencement of this Act, the CSV board must—

(a) prepare a four-year strategic plan; and

(b) submit the plan to the Minister for approval.

(2) The strategic plan prepared under subsection (1) must contain the following—

(a) a vision statement;

(b) a mission statement;

(d) objectives to be met during the course of the plan;

(e) details of the strategic initiatives which will enable Cladding Safety Victoria to meet those objectives.

(3) If the strategic plan prepared under subsection (1) has been approved by the Minister—

(a) the CSV board must adopt and implement the plan; and

(b) the Minister must provide a copy of the plan to the Treasurer.

33 Annual work program

(1) Subject to subsection (4), no later than 30 June each year, the CSV board must—

(a) prepare a work program for the next financial year; and

(b) submit the program to the Minister for approval.

(2) The work program prepared under subsection (1) must include—

(a) objectives to be met during the next financial year; and

(b) details of the actions which Cladding Safety Victoria will take during the next financial year to meet those objectives.

(3) If the work program prepared under subsection (1) has been approved by the Minister, the CSV board must—

(a) adopt and implement the program; and

(b) ensure that a copy of the program is published on a website maintained by Cladding Safety Victoria.

(4) For the financial year commencing 1 July 2020, the CSV board must carry out the duties specified in subsection (1) within three months of the commencement of this Act.

34 Compliance with strategic plan and annual work program

If the CSV board fails to act consistently with the strategic plan or an annual work program approved by the Minister, the Minister may—

(a) direct the CSV board to take steps to act consistently with the strategic plan or the work program, as the case requires; or

(b) direct the CSV board to amend the strategic plan or the work program, as the case requires; or

35 Information to be included in report of operations

(1) Cladding Safety Victoria must include in its report of its operations under Part 7 of the Financial Management Act 1994 the following information in respect of a financial year—

(a) details of funding agreements entered into during the financial year;

(b) details of cladding rectification work funded during the financial year;

(d) any other information that is required by the Minister in writing at least 30 days before the end of the financial year.

(2) The information provided under subsection (1) must not include any information that would identify the location of any building that is subject to cladding rectification work.

36 Record keeping

(1) Cladding Safety Victoria must keep up-to-date records of the following—

(a) notifications by municipal building surveyors under section 27 of buildings requiring cladding rectification work, including any supporting information;

(b) decisions under section 28 to prioritise buildings for potential financial assistance for cladding rectification work;

(c) decisions under section 29 to accept or refuse to accept applications to register owners and owners corporations of buildings for potential financial assistance;

(d) the owners, owners corporations and buildings in respect of which applications to register for potential assistance have been accepted;

(e) the activities undertaken by Cladding Safety Victoria in considering decisions to prioritise buildings for potential financial assistance and applications to register owners and owners corporations of buildings for potential financial assistance;

(f) decisions under section 30 to grant financial assistance for cladding rectification work and their corresponding funding agreements;

(g) complaints under section 26 and their corresponding written reports.

(2) The records under subsection (1) must be kept in accordance with the prescribed requirements.

37 Information sharing

(1) Cladding Safety Victoria may enter into information sharing agreements with any of the following persons or bodies for the purposes of performing the functions of Cladding Safety Victoria or the person or body under this or any other Act—

(a) a Department or public entity within the meaning of the Public Administration Act 2004;

(b) the Authority;

(d) the Environment Protection Authority;

(e) the Country Fire Authority;

(f) Fire Rescue Victoria;

(g) a municipal building surveyor;

(h) any other person or body that exercises functions in the public interest that involve protecting the interests of the public.

(2) An information sharing agreement may extend to information that would be reasonably required by either party to the agreement to assist in the exercise of functions under this Act or the functions of the other party.

38 Improper use of information

A person must not improperly use any information to obtain, directly or indirectly, any pecuniary or other advantage for that person or another person, if the information was acquired in the course of that person's duties or former duties as—

(a) a member of the CSV board; or

(b) the chief executive officer; or

Penalty: 60 penalty units.

39 Prohibition on disclosure of certain information

(1) A person who, in the course of performing functions or duties or exercising powers under this Act, receives information that would identify the location of any buildings affected by non‑compliant or non-conforming external wall cladding products must not disclose the information.

Penalty: 60 penalty units.

(2) Subsection (1) does not apply to the following disclosures of information—

(a) information shared in accordance with an information sharing agreement under section 37;

(b) a record or disclosure made with the written authorisation of Cladding Safety Victoria or the Minister;

(d) any other disclosure of information to the extent necessary in the performance of Cladding Safety Victoria's functions under this Act;

(e) a disclosure required or permitted under another Act.

Division 2—Financial powers

40 Cladding Safety Victoria may invest funds

Cladding Safety Victoria may invest any monies not immediately required for the purposes of performing its functions in any manner approved by the Treasurer.

41 Cladding Safety Victoria may engage agent in carrying out functions

Cladding Safety Victoria may enter into arrangements or agreements with any person or body to act as its agent in the carrying out of its functions under the Financial Management Act 1994 or otherwise in relation to required accounting activities.

42 Cladding Safety Victoria funding

S. 42(1) amended by No. 11/2023 s. 57.

(1) The Authority must pay out of the Cladding Safety Victoria account under section 205DB(1)(e) of the Building Act 1993 to Cladding Safety Victoria for the purposes of this Act any amount remaining in that account after the payments specified in section 205DB(1)(b), (c), (ca) and (2) of the Building Act 1993 have been made.

(2) If the Treasurer is satisfied that there is at any time an amount in excess of the amount required to meet the anticipated costs to Cladding Safety Victoria in performing its functions, the Treasurer, after consultation with the Minister and Cladding Safety Victoria, may direct the payment of the whole or any part of that excess amount out of the account into the Consolidated Fund.

(3) Cladding Safety Victoria must comply with a direction made by the Treasurer.

Part 5—General

43 Regulations

(1) The Governor in Council may make regulations for or with respect to the following—

(a) the administration of the cladding rectification program;

(b) the prioritisation of buildings for potential financial assistance for cladding rectification work, including—

(i) the criteria to which Cladding Safety Victoria must have regard; and

(ii) other requirements in accordance with which a prioritisation decision must be made;

(c) applications to register owners and owners corporations of buildings for potential financial assistance for cladding rectification work, including—

(i) the requirements in accordance with which applications must be made; and

(ii) the information to be provided by owners and owners corporations of buildings; and

(iii) the inspection of buildings by Cladding Safety Victoria and the testing of materials; and

(iv) the applicable timeframes for applications and their consideration;

(d) grants of financial assistance to owners and owners corporations of buildings, including—

(i) the process in accordance with which grants of financial assistance must be made; and

(ii) the assessment of cladding rectification work; and

(iii) tendering processes for building practitioners to undertake cladding rectification work; and

(iv) the monitoring of cladding rectification work carried out under funding agreements; and

(v) the determination of whether cladding rectification work carried out under a funding agreement has been completed;

(e) standard terms and conditions for agreements and contracts in relation to consultancy, technical design and project management services;

(f) any other matter or thing required or permitted by this Act to be prescribed or necessary to be prescribed to give effect to this Act.

(2) The regulations—

(a) may be of general or limited application; and

(b) may differ according to differences in time, place or circumstance; and

(c) may confer a discretionary authority or impose a duty on or leave any matter to be determined or approved by a specified person or class of persons; and

(d) may provide for the exemption of persons or classes of persons, or buildings or classes of buildings, land or classes of land, or building work or plumbing work or classes of building work or plumbing work, or materials or products or classes of materials or products in relation to building work or plumbing work, from any of the provisions of this Act or the regulations; and

(e) may impose penalties not exceeding 20 penalty units for a contravention of the regulations.

S. 44 expired by force of No. 31/2020 s. 44(6).

45 Review of this Act

(1) Subject to subsection (2), the Minister must ensure that a review is undertaken and a report is prepared to determine whether there is an ongoing need for Cladding Safety Victoria as established by this Act.

(2) The Minister must ensure that the review is undertaken no later than 1 January 2024.

(3) The Minister must ensure that a copy of the report referred to in subsection (1) is laid before each House of Parliament within 7 sitting days of that House after the review is completed.

Part 6—Transitional provisions

46 Definitions

In this Part—

commencement day means the day on which Part 2 of this Act comes into operation;

liabilities means all liabilities, duties and obligations, whether actual, contingent or prospective;

property means any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property of any description;

rights means all rights, powers, privileges and immunities, whether actual, contingent or prospective.

47 Transfer of staff from the Authority to Cladding Safety Victoria

(1) The chief executive officer of the Authority, with the approval of the Minister, must list in writing the executive officers and employees of the Authority who perform functions relating to cladding rectification work and are employed by the Authority immediately before the commencement day who are to be employed under Part 3 of the Public Administration Act 2004.

(2) An officer or employee listed under subsection (1) (a transferred employee) is taken—

(a) to be employed under Part 3 of the Public Administration Act 2004 with effect on the commencement day; and

(b) to be employed in their new position with effect on and after the commencement day; and

(c) to be employed on terms and conditions no less favourable overall than those that applied to the person as an officer or employee of the Authority immediately before the commencement day; and

(d) to have accrued an entitlement to benefits in connection with the employment under Part 3 of the Public Administration Act 2004 that is equivalent to the entitlement that the person had accrued, as an officer or employee of the Authority, immediately before the commencement day.

(3) The service of a transferred employee under Part 3 of the Public Administration Act 2004 is to be regarded for all purposes as having been continuous with the service of the transferred employee, immediately before the commencement day, as an officer or employee of the Authority.

(4) A transferred employee is not entitled to receive any payment or other benefit by reason only of having ceased to be an employee of the Authority because of the operation of this Part.

(5) A certificate purporting to be signed by the chief executive officer of the Authority certifying that a person named in the certificate was, with effect on and after the commencement day, employed, by virtue of this section, under Part 3 of the Public Administration Act 2004, is admissible in evidence in any proceedings and is conclusive proof of the matters stated in it.

(6) The superannuation entitlements of any person who is a transferred employee are taken not to be affected by that person becoming a transferred employee.

(7) Nothing in this section prevents—

(a) any of the terms and conditions of employment of a transferred employee from being altered by or under any law, award or agreement with effect any time on or after the commencement day; or

(b) a transferred employee from resigning or being dismissed at any time after the commencement day in accordance with the then-existing terms and conditions of their employment under Part 3 of the Public Administration Act 2004.

(8) The chief executive officer of the Authority may make an amendment to the list prepared under subsection (1) for the purposes of correcting any technical or other minor error.

48 Chief executive officer

On the commencement day, the person appointed as the chief executive officer of the Cladding Safety Victoria business unit in the Authority immediately before that day, and who is listed under section 47(1) as the chief executive officer, is taken to be chief executive officer of Cladding Safety Victoria appointed under section 23 of this Act.

49 Transfer of property, rights and liabilities of the Authority to Cladding Safety Victoria

(1) The chief executive officer of the Authority, with the approval of the Minister, must list in writing the property, rights and liabilities of the Authority immediately before the commencement day which are to be transferred to Cladding Safety Victoria.

(2) On the commencement of this section—

(a) all property and rights listed under subsection (1) are vested in Cladding Safety Victoria; and

(b) all liabilities listed under subsection (1) become the liabilities of Cladding Safety Victoria.

(3) Documentary or other evidence that would have been admissible for or against the interests of the Authority in relation to property, rights or liabilities listed under subsection (1) if this Part had not been enacted is admissible for or against the interests of Cladding Safety Victoria.

(4) The Evidence Act 2008 applies with respect to the books of account of Cladding Safety Victoria and to entries made in those books of account before the commencement day, whether or not they relate to property, rights or liabilities listed under subsection (1), as if those books of account and entries were business records of Cladding Safety Victoria.

(5) A certificate purporting to be signed by the chief executive officer of the Authority certifying that property, rights or liabilities of the Authority specified in the certificate have been transferred to Cladding Safety Victoria is admissible in evidence in any proceedings and is conclusive proof that the property, rights or liabilities so specified are the property, rights and liabilities to which a list under subsection (1) applies.

(6) The chief executive officer of the Authority may make an amendment to the list prepared under subsection (1) for the purposes of correcting any technical or other minor error.

50 Substitution of parties to agreements

If the rights and liabilities of the Authority under an agreement are rights that vest in or liabilities that become liabilities of Cladding Safety Victoria under this Part—

(a) Cladding Safety Victoria becomes, on the commencement day, a party to the agreement in place of the Authority; and

(b) on and after the commencement day, the agreement has effect as if Cladding Safety Victoria had always been a party to the agreement.

51 Existing matters before the Authority

(1) If a municipal building surveyor has, before the commencement day, notified the Authority of a building that the municipal building surveyor considers requires cladding rectification work, that notification is taken to be a notification to Cladding Safety Victoria under section 27.

(2) If the Authority has, before the commencement day, prioritised for potential financial assistance any buildings in respect of which it has been notified by a municipal building surveyor as requiring cladding rectification work, that prioritisation is taken to be a prioritisation by Cladding Safety Victoria under section 28.

52 Validity of things done under this Part

(1) Nothing effected or to be effected by this Part or done or suffered under this Part—

(a) is to be regarded as placing any person in breach of contract or confidence or as otherwise making any person guilty of a civil wrong; or

(b) is to be regarded as placing any person in breach of, or as constituting a default under, any Act or other law or obligation or any provision in any agreement, arrangement or understanding including, but not limited to, any provision or obligation prohibiting, restricting or regulating the assignment, transfer, sale or disposal of any property or the disclosure of any information; or

(c) is to be regarded as fulfilling any condition that allows a person to exercise a power, right or remedy in respect of or to terminate any agreement or obligation; or

(d) is to be regarded as giving rise to any remedy for a party to a contract or an instrument or as causing or permitting the termination of any contract or instrument because of a change in the beneficial or legal ownership of any property, right or liability; or

(e) is to be regarded as causing any contract or instrument to be void or otherwise unenforceable; or

(f) is to be regarded as frustrating any contract; or

(g) releases any surety or other obligor wholly or in part from any obligation.

(2) In this section Act does not include the Charter of Human Rights and Responsibilities Act 2006.

Part 7—Amendment of Building Act 1993

53 Limitation on time when building action may be brought

At the end of section 134 of the Building Act 1993 insert—

"(2) Despite subsection (1), a building action may be brought more than 10 years but less than 12 years after the date of issue of the occupancy permit in respect of the building work (whether or not the occupancy permit is subsequently cancelled or varied) or, if an occupancy permit is not issued, the date of issue under Part 4 of the certificate of final inspection of the building work if—

(a) the building action is a cladding building action; and

(b) the building action has become or becomes prohibited on or after 16 July 2019, but before 12 months after the commencement of section 53 of the Cladding Safety Victoria Act 2020, by this section as in force immediately before the commencement of that section of that Act.

(3) In this section—

cladding building action means a building action in connection with, or otherwise related to, a product or material that is, or could be, a non-compliant or non‑conforming external wall cladding product.".

54 Subrogation

(1) For section 137F(1) of the Building Act 1993 substitute—

"(1) This section applies if, after the commencement of section 54 of the Cladding Safety Victoria Act 2020, Cladding Safety Victoria pays an amount to an owner of a building (the payee) by way of a grant of financial assistance in relation to cladding rectification work on the building.".

(2) In section 137F(2) of the Building Act 1993, for "At the relevant time" substitute "When the financial assistance is paid to the payee".

(3) After section 137F(9) of the Building Act 1993 insert—

"(9A) Despite the amendment of this section by section 54 of the Cladding Safety Victoria Act 2020, any right of subrogation conferred on the Crown under this section as in force immediately before its amendment continues to have effect.".

(4) In section 137F(10) of the Building Act 1993—

(a) in the definition of officer, in paragraph (b), for "Act;" substitute "Act.";

(b) the definition of relevant time is repealed.

55 Functions of the Authority

(1) In section 197(f)(iii) of the Building Act 1993, for "plumbers; and" substitute "plumbers;".

(2) Section 197(f)(iv) of the Building Act 1993 is repealed.

(3) Section 197(fa) of the Building Act 1993 is repealed.

56 Payments into the Cladding Safety Victoria account

(1) Section 205DA(d) of the Building Act 1993 is repealed.

(2) Section 205DA(e) of the Building Act 1993 is repealed.

57 Payments out of the Cladding Safety Victoria account

Section 205DB(1)(a) of the Building Act 1993 is repealed.

57A Building permit levy must be paid

After section 205G(2C) of the Building Act 1993 insert—

"(2D) In the case of a building permit for which the building work relates to more than one class of building, and those classes of building include one or more class of building referred to in section 205G(2A) and a class 1, 9 or 10 building, the levy paid under subsection (2A) and calculated under subsection (2B) or (2C) must not include an amount that relates to the class 1, 9 or 10 building.".

57B Building permit application must contain information about cost of building work

(1) After section 205H(1) of the Building Act 1993 insert—

"(1AA) An application for a building permit must also specify the following—

(a) whether the building work relates to more than one class of building;

(b) if the building work relates to more than one class of building—each class of building;

(c) if the building work relates to more than one class of building, and those classes of building include one or more class of building referred to in section 205G(2A) and a class 1, 9 or 10 building—

(i) the cost of the building work that relates to the class or classes of building referred to in section 205G(2A); and

(ii) the cost of the building work that relates to the class 1, 9 or 10 building.".

(2) In section 205H(2) of the Building Act 1993, for "subsections (1) and (1A)" substitute "this section".

57C Relevant building surveyor must refuse a permit in certain circumstances

In section 205HA(b)(i) of the Building Act 1993, after "205H(1)(b)" insert ", (1AA)(c)".

57D Calculation and notification of levy

After section 205I(3) of the Building Act 1993 insert—

"(4) In addition to subsections (1) and (2), for the purposes of the building permit levy payable under section 205G(2A), if an application is for a building permit in respect of which the building work relates to more than one class of building, and those classes of building include one or more class of building referred to in section 205G(2A) and a class 1, 9 or 10 building—

(a) the relevant building surveyor must—

(i) estimate the cost of the building work (including the cost of labour and material) that relates to the class or classes of building referred to in section 205G(2A) and for which the building permit is sought, having regard to the information given under section 205H(1AA); and

(ii) estimate the cost of the building work (including the cost of labour and material) that relates to the class 1, 9 or 10 building and for which the building permit is sought, having regard to the information given under section 205H(1AA); and

(b) the Authority must—

(i) calculate the amount of building permit levy payable under section 205G(2A) in respect of building work that relates to the class or classes of building referred to in section 205G(2A); and

(ii) give the applicant written notice of the amount calculated under subparagraph (i).".

57E Authority may reassess levy after building permit issued

(1) In section 205L(1)(b) of the Building Act 1993, after "205I(1)" insert "or (4)".

(2) In section 205L(1)(c) of the Building Act 1993, after "205H(1)" insert "or (1AA)".

57F Authority to give notice of refund

In section 205LBA(1) of the Building Act 1993, for "205L(1A)(b) or (c)" substitute "205L(1)(b) or (c) or (1A)(b) or (c)".

58 Information sharing

(1) After section 259AB(2)(b) of the Building Act 1993 insert—

"(ba) information in relation to cladding rectification work;".

(2) In section 259AB(7) of the Building Act 1993, in the definition of relevant agency, after paragraph (j) insert—

"(ja) Cladding Safety Victoria; or

(jb) the Department of Treasury and Finance; or".

58A New section 277A inserted

After section 277 of the Building Act 1993 insert—

"277A Transitional provision relating to the building permit levy

(1) The amendments made to this Act by sections 57A, 57B, 57C, 57D, 57E and 57F of the Cladding Safety Victoria Act 2020 apply to the calculation of the building permit levy as if those sections had been in operation on and after 1 January 2020 and for that purpose those sections are taken to have been in operation on and after 1 January 2020.

(2) The Authority may request an applicant for a building permit or a relevant building surveyor to provide any information that it considers necessary to assist in the reassessment and refund of any building permit levy.".

Part 8—Amendment of Public Administration Act 2004

59 Persons with functions of public service body Head

After section 16(1)(ja) of the Public Administration Act 2004 insert—

"(k) the chairperson within the meaning of the Cladding Safety Victoria Act 2020 in relation to Cladding Safety Victoria;".

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Endnotes

1 General information

See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 4 September 2020

Legislative Council: 16 October 2020

The long title for the Bill for this Act was "A Bill for an Act to establish a body corporate called Cladding Safety Victoria for the purposes of administering a cladding rectification program and to make related amendments to the Building Act 1993 and the Public Administration Act 2004 and for other purposes."

The Cladding Safety Victoria Act 2020 was assented to on 4 November 2020 and came into operation as follows:

Sections 1–57, 58, 59 on 1 December 2020: Special Gazette (No. 624) 1 December 2020 page 1; sections 57A–57F, 58A on 1 February 2021: Special Gazette (No. 624) 1 December 2020 page 1.

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original section or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

• Headings

All headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).

• Examples, diagrams or notes

All examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).

• Punctuation

All punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).

• Provision numbers

All provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).

• Location of "legislative items"

A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.

• Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.
See section 36(3)(3D)(3E).

2 Table of Amendments

This publication incorporates amendments made to the Cladding Safety Victoria Act 2020 by Acts and subordinate instruments.

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Cladding Safety Victoria Act 2020, No. 31/2020

Assent Date:	4.11.20
Commencement Date:	S. 44(6) on 1.2.21: Special Gazette (No. 624) 1.12.20 p. 1
Note:	S. 44(6) provided that s. 44 expired on 1.12.24
Current State:	This information relates only to the provision/s amending the Cladding Safety Victoria Act 2020

Building Legislation Amendment Act 2023, No. 11/2023

Assent Date:	6.6.23
Commencement Date:	S. 57 on 1.2.24: s. 2(2)
Current State:	This information relates only to the provision/s amending the Cladding Safety Victoria Act 2020

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

3 Explanatory details

No entries at date of publication.

1 Cladding Safety Victoria Act 2020

Version No. 004

Cladding Safety Victoria Act 2020

No. 31 of 2020

Version incorporating amendments as at
2 December 2024

TABLE OF PROVISIONS

Section Page

Part 1—Preliminary 1

1 Purposes 1

2 Commencement 2

3 Definitions 3

4 Application of Act to the Crown and public authorities 5

Part 2—Cladding Safety Victoria 6

Division 1—Establishment, functions and powers 6

5 Establishment of Cladding Safety Victoria 6

6 Object of Cladding Safety Victoria 6

7 Functions of Cladding Safety Victoria 7

8 Delegation by Cladding Safety Victoria 8

9 Cladding Safety Victoria represents the Crown 9

Division 2—CSV board 9

10 CSV board 9

11 Appointment of CSV board members 9

12 When chairperson or deputy chairperson ceases to hold office 11

13 When CSV board member ceases to be a member 11

14 Minister may remove CSV board members 11

15 Resignation of CSV board member 12

16 When deputy chairperson is required to act as chairperson 12

17 Minister may appoint CSV board member to act as deputy chairperson 13

18 Minister may appoint person to act as CSV board member 13

19 Validity of acts and decisions of the CSV board 14

20 Proceedings of the CSV board 14

21 Pecuniary interests and conflicts of interest of CSV board members 15

22 Personal liability 17

Division 3—Chief executive officer and staff 17

23 Chief executive officer 17

24 Staff 18

Division 4—Ministerial direction 18

25 Direction and control of the Minister 18

Division 5—Complaints 19

26 Complaints to Cladding Safety Victoria 19

Part 3—Financial assistance for cladding rectification work 20

27 Notification of buildings requiring cladding rectification work 20

28 Prioritisation of buildings for potential financial assistance 20

29 Applications to register owners and owners corporations of buildings for potential financial assistance 21

Object and scope: The object of CSV is safety‑focused: to support rectification of non‑compliant or non‑conforming external wall cladding products to improve building safety (s 6). "Cladding rectification work" and "non‑compliant or non‑conforming external wall cladding product" are taken from the Building Act 1993, which CSV is required to work with and which the Act amends in Part 7 (s 3 definitions; Pt 7). The Act binds the Crown and applies to public authorities and councils (s 4).

Corporate form and Crown representation: CSV is a body corporate with perpetual succession, an official seal, the ability to sue and be sued, and to hold property (s 5). CSV represents the Crown when performing its functions and duties (s 9). This legal form underpins CSV’s ability to enter funding agreements, procure services and be a party to contracts transferred from the Authority in the transitional arrangements (ss 5, 49-51).

Governance and executive functions: Governance is via a board of 3-7 members appointed by the Minister (ss 10-11). Appointment criteria require at least one member with building or construction experience and collective skills across regulation, engagement, risk management, governance, finance, strategy and legal practice (s 11(2)). The CSV board appoints the chief executive officer, who is employed under the Public Administration Act 2004 and is responsible for day‑to‑day management (s 23). The Act limits who may be CEO by excluding certain Authority office‑holders (s 23(3)). The Minister has general direction and control and may direct CSV to cease performing functions or to take particular actions (ss 7(3), 25, 34).

Program mechanics: The Act sets out a three‑stage operational pathway for public intervention.

Detection and referral: municipal building surveyors may notify CSV of buildings they consider require cladding rectification work, supplying supporting information in a prescribed form; CSV may request further information (s 27).
Prioritisation and registration: CSV must prioritise notified buildings using prescribed criteria and may invite those owners or owners corporations to apply to register for potential financial assistance (ss 28-29). Acceptance procedures must consider prescribed matters; CSV may refuse where applicants fail to supply requested information, and must give decisions with reasons within 14 days (s 29).
Granting and delivery: CSV decides to grant or refuse financial assistance for registered applicants following prescribed processes. It may assess buildings, request further information, enter funding agreements in prescribed form and monitor rectification work, and must notify completion to specified authorities (s 30-31). Funding agreements contain prescribed terms and conditions (s 30(8)).

Information governance and confidentiality: CSV must keep up‑to‑date records of notifications, priorities, applications, decisions, funding agreements and complaints (s 36). CSV may enter information sharing agreements with specified public bodies for the purpose of performing functions, and may share information reasonably required by the parties (s 37). The Act prohibits improper use of information acquired in official duties and prohibits disclosure of information identifying the location of affected buildings, subject to enumerated exceptions (ss 38-39). Penalties of up to 60 penalty units apply to breaches of certain confidentiality and conflict rules (ss 21(1), (4); 38-39).

Financial architecture: CSV’s funding is supplied from a Cladding Safety Victoria account within the Building Act fund structure; the Victorian Building Authority must pay amounts remaining in that account to CSV after specified payments are made (s 42; see Pt 7 amendments to the Building Act, ss 56-57). CSV may invest funds as approved by the Treasurer and may engage agents for financial management (ss 40-41). The Treasurer may direct the payment of excess funds into the Consolidated Fund after consultation with the Minister and CSV (s 42(2)-(3)). Regulations may prescribe standard contract terms, tendering processes and monitoring arrangements for procurement of rectification services (s 43).

Amendments to the Building Act 1993: The Act extends time limits for cladding actions from the default 10 years to up to 12 years in certain circumstances (s 53). It confers subrogation rights to the Crown when CSV pays financial assistance, thereby enabling the Crown to pursue the rights and remedies of payees (s 54, which amends Building Act s 137F). The Act also reforms how building permit levies are calculated and reported where proposed building work spans multiple classes of building so that levies do not include class 1, 9 or 10 building elements where those are incidental (ss 57A-57F). Transitional provisions apply those levy amendments retrospectively to 1 January 2020 and enable levy reassessment and refunds (s 58A).

Delegation, discretion and regulation: CSV has broad powers to delegate its functions except for the power to delegate itself and the power to appoint the CEO (s 8). The regulations may prescribe substantial operational details, give discretionary powers, impose duties on specified persons, and provide for exemptions and penalties not exceeding 20 penalty units (s 43(1)-(2)). This means many practical decisions will be set out in subordinate instruments and prescribed forms referenced throughout the Act.

Owners and owners corporations of affected buildings: The primary beneficiaries and regulated parties are owners and owners corporations of buildings with non‑compliant or non‑conforming external wall cladding products. CSV’s scheme is designed to identify buildings, invite owners to register for potential financial assistance, and, where assistance is granted, to enter funding agreements that specify terms and conditions for rectification (ss 27-31). Owners will face application and information obligations, including reasonable steps to supply requested information (s 29(4)-(6)), and will enter funding agreements which may include conditions, monitoring and likely subrogation by the Crown (s 30(7)-(8); s 54 amending Building Act s 137F).

Municipal building surveyors and the Victorian Building Authority (the Authority): Municipal building surveyors are empowered to notify CSV of buildings they consider require rectification, and must include supporting information in a prescribed form (s 27). The Authority is implicated in funding flows, data exchange and the transitional arrangements that transfer property, staff and functions to CSV (ss 27; 42; Pt 6). The Building Act is amended to change the Authority’s role in levy administration and information sharing (Pt 7, ss 56-58A).

Building practitioners, contractors and consultants: CSV may procure building practitioners, engage technical design and project management services, and perform tendering processes for rectification work as prescribed by regulation (s 7(1)(a)(v)-(vi); s 43(1)(d)(iii)). Practitioners and firms will be able to obtain contracts from CSV and will be subject to any procurement and monitoring conditions the regulations prescribe.

Public sector agencies and emergency services: CSV may enter information sharing agreements with Departments and public entities, the Authority, Consumer Affairs Victoria, Environment Protection Authority, Country Fire Authority, Fire Rescue Victoria, municipal building surveyors and other public interest bodies (s 37). These agencies may receive notification of completed rectification work and be participants in regulatory enforcement where relevant (s 31; s 37).

Minister and Treasurer: The Minister appoints and may remove board members, approves strategic plans and annual work programs and can give directions to CSV (ss 11, 14, 32-34, 25). The Treasurer has a fiscal role in approving investments and directing payment of excess funds from the Cladding Safety Victoria account to the Consolidated Fund, after consultation (s 40; s 42(2)-(3)).

Members of the CSV board and CSV staff: Board members must meet skills and experience requirements, declare and manage pecuniary and conflict interests, and are protected from personal liability for acts or omissions done in good faith (ss 11(2); 21; 22). Staff transferred from the Authority are given continuity of service and equivalent terms and conditions under the Public Administration Act (s 47). The CEO is subject to specific eligibility constraints and is employed under the Public Administration Act (s 23).

Regulated third parties: The Act’s confidentiality and improper use rules create criminal penalties for CSV board members, the CEO and staff who misuse information acquired in their duties (ss 38-39). Regulators who receive information under prescribed sharing arrangements will be affected by the statutory non‑disclosure rules and the prescribed exceptions (s 39(2)).

Indirectly affected groups: Insurers, financiers and party defendants to subrogated claims. Where CSV pays financial assistance, the Crown obtains subrogated rights under the Building Act amendments (s 54 amending s 137F); this creates a channel for the State to pursue recovery from liable parties. The Act also adjusts building permit levy calculation mechanics which affects applicants and liable parties for permit‑related levies where multiple building classes are involved (ss 57A-57F, 58A).

General public and data privacy interests: The Act restricts public disclosure of the locations of affected buildings and requires that CSV’s report of operations exclude information identifying building locations (s 35(2); s 39). This affects journalists, researchers and local communities seeking granular public data about cladding risk. Access to location information is permitted in specified circumstances including information sharing agreements and to regulators (s 39(2)).

Duties of Cladding Safety Victoria

Perform the cladding rectification program and associated functions: prioritisation, registration, grant decision‑making, funding agreement management, procurement and monitoring of rectification works, supporting owners and owners corporations, and facilitating rectification for government buildings (s 7(1)(a)-(g)).
Engage with affected parties and efficiently deal with complaints (s 7(2)). CSV must consider complaints under a prescribed process and give a written report to the complainant (s 26).
Prepare a four‑year strategic plan within three months of commencement and submit it to the Minister for approval; prepare annual work programs by 30 June each year for Ministerial approval and publish approved work programs (ss 32-33). CSV must implement approved strategic plans and work programs; the Minister may direct amendment or compliance actions if CSV fails to act consistently with them (s 34).
Keep specified records of notifications, prioritisation decisions, applications, accepted registrations, activities undertaken in consideration, grant decisions and funding agreements, and complaints and responses, in accordance with prescribed requirements (s 36).
Notify the Minister, the Authority, municipal building surveyor and prescribed agencies of the completion of funded cladding rectification work (s 31).
Comply with directions from the Minister including the provision of any information or assistance required (s 25).
Enter funding agreements in the prescribed form and with prescribed terms and conditions where financial assistance is granted (s 30(7)-(8)).

Rights and powers of Cladding Safety Victoria

CSV is a body corporate that may sue and be sued, may hold property and enter contracts (s 5(2)(a)-(d)).
CSV represents the Crown in performing its functions (s 9).
CSV has all powers necessary to achieve its object and perform its functions (s 7(4)); it may delegate functions under prescribed limits (s 8).
CSV may invest monies not immediately required in manners approved by the Treasurer and may engage agents for financial management (ss 40-41).

Duties on municipal building surveyors and applicants

Municipal building surveyors may notify CSV of buildings considered to require cladding rectification work and must include supporting information in the prescribed form; CSV may request further information (s 27).
Relevant building surveyors are subject to amended Building Act permit accounting and reporting obligations when work spans multiple building classes; they must estimate and provide cost breakdowns to permit applicants and the Authority for levy calculation (ss 57B-57D).

Duties and constraints on CSV board members and staff

Board members must meet composition and skill criteria at appointment (s 11(2)).
Board members must disclose any direct or indirect pecuniary interest or conflict of interest at a meeting as soon as practicable (s 21(1)). A member who makes a disclosure must not be present during, or otherwise take part in, deliberation or voting on that matter and the disclosure must be recorded in the minutes; contraventions attract a penalty of 60 penalty units (s 21(4)-(5)).
Board members are protected from personal liability for good faith performance of duties; any liability attaches to CSV instead (s 22).

Rights of applicants and recipients

Applicants invited to register must be notified whether their application is accepted or refused within 14 days of the decision; refusals must include reasons (s 29(7)-(8)). When CSV decides whether to grant financial assistance, it must notify the applicant within 14 days of the decision and provide reasons if assistance is refused (s 30(5)-(6)).
Owners who receive financial assistance are subject to funding agreements containing prescribed terms and conditions (s 30(7)-(8)). The Building Act amendments provide for Crown subrogation to the payee’s rights when CSV pays assistance (s 54 amending Building Act s 137F).

Information handling duties and prohibitions

CSV and persons performing duties under this Act must not improperly use information to obtain a pecuniary or other advantage if that information was acquired in the course of their duties (s 38). Penalty 60 penalty units.
Persons receiving location‑identifying information must not disclose it, subject to specific exceptions such as information sharing agreements, written authorisation, disclosure to a regulator, or disclosures necessary to perform CSV’s functions (s 39(1)-(2)). Penalty 60 penalty units.

Regulatory powers and delegated matters

The Governor in Council may make regulations to prescribe the administration of the rectification program, prioritisation criteria, application requirements, inspection and testing rules, grants processes, tendering, monitoring and determination of completion, standard terms and conditions and other matters required to give effect to the Act (s 43(1)). Regulations may include penalties up to 20 penalty units and may confer discretionary authorities or exemptions (s 43(2)).

Financial duties and constraints

The Authority must pay CSV amounts remaining in the Cladding Safety Victoria account under the Building Act after other specified payments have been made (s 42(1)). The Treasurer may direct payment of excess amounts to the Consolidated Fund after consultation, and CSV must comply with Treasurer directions (s 42(2)-(3)).

Statutory penalties and enforcement mechanisms in the Act are concentrated in three principal areas: conflicts of interest and governance, misuse and disclosure of information, and subordinate instrument offences.

Conflicts of interest and governance penalties

Board members who fail to disclose a direct or indirect pecuniary interest or conflict of interest in a matter being considered must disclose the nature of the interest at a meeting as soon as practicable. Failure to disclose attracts a penalty of 60 penalty units (s 21(1) and the penalty notation). Moreover, a member who has disclosed the interest must not be present for deliberations or voting on that matter and contravention of that prohibition also attracts a 60 penalty unit penalty (s 21(4)). The Act defines circumstances that create a presumption of interest for a building matter, including former involvement in the building’s design or permitting (s 21(3)).

Information misuse and disclosure offences

Section 38 prohibits a person from improperly using any information acquired in the course of duties as a CSV board member, CEO or staff member to obtain any pecuniary or other advantage for themselves or another person. The penalty specified is 60 penalty units.
Section 39 prohibits disclosing information that would identify the location of affected buildings when the information was received in the course of performing functions or duties under the Act. The penalty is 60 penalty units. Subsection 39(2) lists exceptions including disclosures under information sharing agreements, written authorisation by CSV or the Minister, disclosure to regulators, disclosures necessary to perform CSV’s functions and disclosures required or permitted under another Act.

Regulatory penalties

The regulations may impose penalties for contravening prescribed regulations, not exceeding 20 penalty units (s 43(2)(e)). The regulations may be of general or limited application and may confer discretionary authorities, impose duties, or provide exemptions (s 43(2)(a)-(d)). Thus, enforcement approaches for application forms, prescribed timeframes, testing, tendering and monitoring obligations will often sit in the subordinate instruments.

Other enforcement mechanisms

CSV has function‑based powers to notify appropriate regulators, municipal building surveyors, persons and bodies about matters relating to compliance and enforcement under this Act, the Building Act or any other Act (s 7(1)(c)). This enables referral to regulators with statutory enforcement powers external to CSV.
The Act confers rights of subrogation to the Crown where CSV pays financial assistance (s 54 amending Building Act s 137F). Subrogation creates a civil enforcement pathway for recovery of sums paid by CSV from third parties who may be liable.

Personal liability protection and civil liability allocation

Members of the CSV board are not personally liable for acts or omissions done in good faith in the exercise of a power or the discharge of a duty under the Act or regulations. Any liability that would have attached to a member instead attaches to CSV (s 22). That shifts civil risk from individuals to the corporate entity.

Practical enforcement timing and notice obligations

The Act imposes procedural timing requirements for decisions: CSV must notify applicants whether registration is accepted or refused within 14 days of the decision and must include reasons if refused (s 29(7)-(8)). Similarly, CSV must notify applicants whether financial assistance is granted or refused within 14 days and include reasons for refusals (s 30(5)-(6)). Those explicit timeframes create obligations that can be enforced by applicants through administrative review or judicial review mechanisms, though the Act does not set out a statutory internal merits review right.

Limits on sanctions

The maximum penalties in the Act for breaches of conflicts and information misuse are set at 60 penalty units; regulatory offences may attract lower penalties of up to 20 penalty units under regulations (ss 21, 38-39, 43). The Act does not specify criminal imprisonment but creates pecuniary penalties and statutory prohibitions. The monetary value of a penalty unit is determined elsewhere and may change over time; the Act cites penalty units without asserting their value.

Integration with the Building Act 1993

Definitions: Many key terms, including "building practitioner", "building work", "cladding rectification work", "non‑compliant or non‑conforming external wall cladding product" and "owner" are defined by reference to the Building Act 1993 (s 3). CSV’s substantive remit therefore sits interdependently with the Building Act’s regulatory regime.
Transfer of functions and funding: The Act transfers certain cladding rectification responsibilities from the Victorian Building Authority (the Authority) to CSV via transitional provisions that transfer staff, property, rights and liabilities, and by requiring the Authority to pay amounts from the Cladding Safety Victoria account into CSV (ss 47-51; s 42). The Building Act is amended to remove some payments into the account and to reallocate powers and funding flows accordingly (Pt 7, ss 56-57).
Subrogation and recovery: The Act amends Building Act s 137F so that when CSV pays a grant of financial assistance, Crown subrogation to the payee’s rights and remedies applies (s 54). This creates a civil law interaction where the Crown, through CSV or other State legal mechanisms, may pursue third parties under the Building Act or other causes of action to recover sums paid.
Limitation periods: The Building Act is amended to permit cladding building actions to be brought between 10 and 12 years after issuance of an occupancy permit in specified circumstances (s 53). This change interacts with existing limitation law and the Building Act’s notion of "building action" to extend potential liability exposure timelines for parties involved in building works.

Building permit levy and permit administration

The Act amends the Building Act’s building permit levy rules to require that where building work relates to more than one class of building and includes classes subject to the cladding levy and class 1, 9 or 10 buildings, the levy must exclude amounts attributable to the class 1, 9 or 10 components. The Act requires permit applications to specify class breakdowns and cost apportionments and requires relevant building surveyors to estimate costs by class for levy calculation. The Authority must calculate and notify the applicant of the levy amount (ss 57A-57F). These changes adjust administration and financial flows for permit applicants and for the Authority and may lead to post‑permit reassessments and refunds (s 57E-57F; s 58A transitional provision).

Public Administration Act 2004

CSV’s CEO and staff are employed under Part 3 of the Public Administration Act 2004; the Act also amends that Act to confer "persons with functions of a public service body Head" status on the chairperson of CSV (s 59). This ties CSV personnel to public service employment frameworks and responsibilities.

Information sharing and other regulatory regimes

CSV may enter into information sharing agreements with several public interest bodies including Departments and public entities, the Authority, Consumer Affairs Victoria, EPA, CFA, Fire Rescue Victoria, municipal building surveyors and "any other person or body that exercises functions in the public interest" (s 37). The Building Act amendments also expand the list of "relevant agencies" that may be party to information sharing to include CSV and the Department of Treasury and Finance (s 58(2)). CSV’s information sharing powers create operational interfaces with consumer protection, environmental, emergency services and local government regulation.

Financial and budget law

CSV’s funding is disbursed from a Cladding Safety Victoria account as provided in the Building Act; the Treasurer may direct excess funds to the Consolidated Fund after consultation (s 42). CSV must comply with Treasurer directions on investments (s 40) and with general financial management obligations under the Financial Management Act 1994, including reporting requirements (s 35 referencing Part 7 of the Financial Management Act). CSV may also engage agents for accounting tasks (s 41).

Administrative law and review

The Act imposes Ministerial control (s 25), Ministerial approval of strategic plans and annual work programs (ss 32-33) and gives the Minister powers to direct CSV to act consistently with approved plans or to amend them (s 34). These executive oversight mechanisms interact with administrative law principles governing lawful exercise of power, procedural fairness and judicial review. The Act provides no express internal merits review mechanism; external review would proceed under common law or statutory judicial review processes.

Privacy and information access regimes

The Act’s prohibitions on disclosure and improper use of information (ss 38-39) operate alongside other privacy and Freedom of Information frameworks. Section 39(2)(e) expressly permits disclosures required or permitted under another Act, so CSV must reconcile its confidentiality rules with statutory reporting or disclosure obligations in other legislation.

Transitional and contractual law

The transitional Part 6 vests listed property, rights and liabilities and substitutes CSV as the party to agreements in place of the Authority where relevant (ss 49-50). Section 52(1) protects persons from being placed in breach of contract or confidence solely because of the operation of the transitional provisions, and limits the effect of the Part on contract remedies and defaults, save for the Charter of Human Rights and Responsibilities Act 2006 which is excluded from that non‑effect protection (s 52(1)-(2)).

Key legislative timeline and formal amendments are recorded in the Act’s table of provisions and endnotes. Relevant dates and amendments included in the provided text are the following.

Commencement

The Act was assented to on 4 November 2020 and came into operation in stages. Sections 1-57, 58 and 59 commenced on 1 December 2020. Sections 57A-57F and 58A commenced on 1 February 2021 (Endnotes).

Amendments under Building Legislation Amendment Act 2023

The Building Legislation Amendment Act 2023 (No. 11/2023) made amendments that affect the Cladding Safety Victoria Act. The table of amendments records that s 57 of the Cladding Safety Victoria Act (i.e. the Act’s s 42(1) cross‑reference) was amended by No. 11/2023 s 57, with a commencement of s 57 on 1 February 2024 (Endnotes, Table of Amendments). The schedule notes that s 42(1) was amended by No. 11/2023 s 57; the Act text includes the footnote "S. 42(1) amended by No. 11/2023 s. 57."

Expiry and transitional provisions

Section 44 of the Act included a provision that expired by force of s 44(6). The endnote table states that s 44(6) provided that s 44 expired on 1 December 2024. The Act’s transitional Part 6 included detailed transfer mechanics for staff, property, rights and liabilities from the Authority to CSV (ss 46-52) and protections for contracts and confidentiality during those transfers (s 52).

Transitional retrospective operation for levy rules

The Building Act amendments introduced by this Act (ss 57A-57F) were given retrospective effect via the new Building Act s 277A inserted by s 58A of this Act. Section 277A(1) provides that the levy calculation amendments apply "as if those sections had been in operation on and after 1 January 2020" (s 58A).

Review requirement

The Act required a review to determine whether there is an ongoing need for CSV to be undertaken no later than 1 January 2024, with the report to be tabled in Parliament within seven sitting days of completion (s 45). The endnotes show the review requirement was imposed.

Documented legislative instruments

The Act expressly leaves many operational matters to subordinate regulation and prescribed forms and requirements. Section 43 provides the regulation‑making power and sets out the matters that regulations may address, including criteria, processes, inspection, testing, tendering, monitoring and completion determination, and penalties up to 20 penalty units. The absence of detailed prescription within the Act itself means significant operational content will be supplied by regulation and the "prescribed" forms and processes referenced throughout the Act.

No case law recorded in the supplied material

The Endnotes and the Act text do not list any judicial decisions or litigation history. The Act’s litigation history section below is correspondingly limited to the Act’s own amendments, commencement and required review. Any judicial or administrative decisions interpreting the Act are not present in the provided material.

The legislative text and endnotes supplied do not include any decisions, reported litigation, or administrative law determinations concerning the Cladding Safety Victoria Act 2020. There are no cases named in the Act, the Explanatory Details section is empty, and the Endnotes provide commencement and amendment details but no litigation entries.

From the statutory material provided:

The Act itself establishes statutory processes that could give rise to disputes likely to be litigated in the future, including disputes about grant determinations, the content or enforcement of funding agreements, information disclosure obligations and subrogation recovery actions under the Building Act amendments (s 54). The Act does not set out internal review or appeal mechanisms for its grant decisions; affected parties could seek merits review if the regulations or funding agreements provide for it, or judicial review on public law grounds in the absence of internal review mechanisms.
The Building Act amendments (Part 7) extend limitation periods for cladding building actions and create Crown subrogation rights when CSV pays assistance (ss 53-54). Those changes may generate future litigation over the scope of "cladding building action", the applicable limitation periods for particular claims and the exercise of subrogation rights.
The information use and non‑disclosure provisions (ss 38-39) impose criminal pecuniary penalties and could lead to enforcement or criminal proceedings in cases of improper use or disclosure of location‑identifying information. Similarly, board member conflict of interest contraventions (s 21) attract a 60 penalty unit sanction and could be the subject of enforcement action.

Because the provided material does not include any judgments, decisions or enforcement records, practitioners should consult up‑to‑date case law databases and administrative tribunal decisions for any developments after the version date (2 December 2024). Any actual litigation history would need to be sourced externally to the Act text provided.

Reliance on prescribed processes and regulations

The Act delegates many operational details to regulations and "prescribed" forms and processes (see repeated references to "prescribed" in ss 27(4), 28(2), 29(3), 30(2), 30(8), 36(2), and s 43 which lists matters that regulations may cover). This means CSV’s legal obligations and the rights of owners largely depend on subordinate instruments. The practical effect of the statute will therefore track the content of regulations and prescribed forms; until those instruments are inspected, the full operational detail is uncertain. The regulations may confer discretionary authorities and permit exemptions (s 43(2)(c)-(d)), so outcomes may vary by delegated rule‑making.

Ministerial control and board independence

The Minister has broad appointment, removal and direction powers. The Minister appoints board members, appoints acting members, may remove members for a range of subjective reasons (including being "no longer suitable", s 14(f)), approves strategic plans and work programs, and may direct CSV to cease performing functions or to act consistently with approved plans (ss 11, 14, 23, 32-34, 25). CSV must comply with Ministerial directions (s 25). Practitioners should note that while CSV has corporate status, key governance and strategic decisions are subject to Ministerial control, and that may influence procurement, prioritisation and eligibility decisions.

Funding dependencies and potential funding variability

CSV’s funding is sourced from a specific Cladding Safety Victoria account under the Building Act; the Authority must pay amounts remaining in that account to CSV after other specified payments are made (s 42(1)). The Treasurer has the ability, after consultation, to direct payment of excess amounts to the Consolidated Fund (s 42(2)-(3)). This architecture makes CSV funding dependent on prior levy collection, accounting by the Authority and Treasurer directions, which creates potential timing and adequacy risks for program delivery.

Confidentiality constraints and reporting limits

CSV must not disclose information that would identify the location of an affected building when received in the course of functions or duties under the Act, with a 60 penalty unit sanction (s 39(1)). The CSV report of operations must exclude information that would identify locations of buildings subject to rectification (s 35(2)). These secrecy rules limit transparency for journalists, researchers and community stakeholders; only specified exceptions permit disclosure, such as information sharing agreements or disclosure to regulators (s 39(2)). Practitioners advising owners or journalists should plan for controlled disclosure channels and check whether any exception applies.

Subrogation and the transfer of recovery rights

Where CSV pays financial assistance, the Crown is subrogated to the rights and remedies of the payee under amended Building Act provisions (s 54). Owners should expect that acceptance of financial assistance will be accompanied by funding agreement terms that give effect to subrogation, enabling the State to pursue recovery from third parties. That affects risk allocation between owners, insurers and potential liable parties and creates practical implications for settlement negotiations.

Conflict of interest traps for board members

The Act defines specific scenarios in which a board member is taken to have a pecuniary interest in matters relating to a building or building work, including prior involvement in designing the building or preparing the permit application, or acting as the relevant building surveyor (s 21(3)). A member engaged in the building industry generally is not automatically taken to have an interest (s 21(2)), but prior involvement with a particular building triggers mandatory disclosure and exclusion requirements, with a 60 penalty unit sanction for non‑compliance (s 21(1), (4)). Board members with industry backgrounds should be vigilant about past engagements and document disclosures carefully.

Prescribed timeframes and notice obligations

CSV must notify applicants of registration and grant decisions within 14 days of making the decision, with refusals requiring reasons (ss 29(7)-(8), 30(5)-(6)). These statutory timing and reasons obligations create potential administrative exposure for CSV if it fails to meet them. For owners, the 14‑day window constrains the timelines for receiving a determination and for planning financing and remediation.

Record keeping and data retention obligations

CSV must keep specific records of notifications, prioritisation, applications, registrations, decisions, funding agreements and complaints in accordance with prescribed requirements (s 36). The Act’s information sharing and confidentiality rules require careful data governance practices; improper use of information is penalised at 60 penalty units (s 38). Practitioners advising CSV or transferred staff should ensure records management and privacy compliance frameworks are in place before operational activity scales up.

Levy‑related administrative complexity

The Building Act amendments require permit applicants to provide a cost breakdown when work relates to multiple building classes, and require the relevant building surveyor to estimate costs by class for levy calculation (ss 57B-57D). These requirements create additional paperwork and potential for post‑permit levy reassessments and refunds (ss 57E-57F; s 58A). Applicants and building surveyors must take care in cost apportionment to avoid overpayment and to support potential reassessment requests.

Transitional protection complexity

The transitional provisions transfer staff, property and liabilities from the Authority to CSV and purport to protect third parties from being placed in breach of contract or confidence by the transfers (s 52). However, the Act excludes the Charter of Human Rights and Responsibilities Act 2006 from the non‑effect provisions in s 52(2). Parties should audit transferred contracts and liabilities carefully; although the Act seeks to preserve continuity, practical contract management issues may arise during the handover.

For owners and owners corporations (prospective applicants)

Respond to CSV invitations and requests promptly. If invited to apply to register for potential financial assistance, prepare an application in the prescribed form containing the prescribed information and complying with any other prescribed requirements (s 29(9)). Take reasonable steps to supply any information CSV requests under s 29(4)-(5); failure to do so allows CSV to refuse to accept the application (s 29(6)).
Expect to provide building documentation and allow inspections. CSV may assess the building to determine extent of rectification required and may request testing or inspections as part of the prescribed process (s 30(3); s 43(1)(c)(iii)). Ensure contracts with consultants and insurers allow for cooperation with CSV assessments.
Read funding agreements carefully before accepting a grant. Funding agreements must be in the prescribed form and contain prescribed terms and conditions (s 30(7)-(8)). They may impose obligations to allow monitoring, meet reporting requirements and accept subrogation arrangements by the Crown as amended by the Building Act (s 54). Liaise with insurers to clarify coverage given subrogation rights.

For municipal building surveyors

Use the prescribed notification form and include supporting information when notifying CSV of a building that requires cladding rectification work (s 27(1)-(4)). Be prepared to provide further information reasonably necessary to support CSV’s prioritisation and assessment (s 27(3)).
Where permit applications involve multiple building classes, follow the amended Building Act permit application requirements and cost breakdown obligations (ss 57B-57D). Provide the required estimates for levy calculation and be ready to assist the Authority on levy reassessments and refund processes (s 57E; s 57F; s 58A).

For CSV board members, CEO and staff

Ensure composition and skills compliance at appointment; document qualifications and skill mapping to meet s 11(2). Observe tenure limits and re‑appointment rules (s 11(3)-(5)).
Make timely and transparent disclosures of any pecuniary interest or conflict of interest at CSV board meetings. If a matter involves a disclosed interest, do not participate in deliberations or votes on that matter and ensure the disclosure is recorded in the minutes (s 21(1), (4)-(5)). Apply the specific s 21(3) “taken to have an interest” scenarios to assess involvement with particular buildings.
Follow records management obligations. Keep up‑to‑date records of notifications, prioritisation decisions, applications, accepted registrations, funding agreements and complaints in accordance with prescribed requirements (s 36). Ensure information security and retention meet prescribed and broader public records standards.
Comply with confidentiality rules and information‑use prohibitions. Do not improperly use information obtained in the course of duties to obtain pecuniary advantage (s 38). Do not disclose information that would identify building locations unless an exception under s 39(2) applies. Put in place procedures for handling requests for disclosure, consistent with s 39(2) exceptions (information sharing agreements, written authorisation, regulator disclosures, or disclosures necessary for CSV functions).
Prepare and submit statutory planning documents. The CSV board must prepare a four‑year strategic plan within three months of commencement and submit it to the Minister for approval; prepare annual work programs by 30 June each year and publish approved programs (ss 32-33). Establish internal processes to ensure Ministerial approvals and implementation timelines are met.

For procurement and project managers

Use prescribed tendering and monitoring rules. The regulations will specify tendering processes, monitoring requirements and criteria to determine when rectification is completed (s 43(1)(d)(iii)-(iv)). Ensure procurement contracts meet the prescribed standard terms and conditions and allow monitoring and completion certification consistent with funding agreement obligations (s 43(1)(e)).
Anticipate the Authority’s involvement in levy flows and ensure OCI and pricing reflect potential delays or reassessments tied to Building Act levy calculations and refunds (ss 42, 57D-57F, 58A).

For legal counsel and compliance officers

Draft funding agreements to reflect subrogation mechanics and Crown recovery rights in line with the Building Act amendments and with prescribed terms when those are finalised. Counsel should review the amended s 137F of the Building Act as inserted by s 54 to ensure funding agreements preserve CSV’s subrogation position.
Develop a compliance checklist for Ministerial approvals, prescribed form requirements and statutory timeframes, particularly the 14‑day notice obligations for registration and grant decisions (ss 29(7), 30(5)). Factor potential judicial review exposure where procedural or notice obligations are not met.
Ensure privacy and FOI interfaces are clear. Because the Act limits disclosure of location‑identifying information, advise on information sharing agreements and on how CSV will comply with FOI or other statutory disclosure obligations while honouring s 39(1) obligations and authorised exceptions (s 39(2)(e)).

For the Treasurer and the Department of Treasury and Finance

Coordinate with the Authority and CSV on the Cladding Safety Victoria account balances and be prepared to direct excess funds into the Consolidated Fund only after consultation with the Minister and CSV (s 42(2)). CSV must comply with Treasurer directions on investments (s 40).

For insurers and financiers

Anticipate that acceptance of CSV funding may trigger Crown subrogation rights. Review insurance policies and security arrangements to determine whether and how claims will be affected by State subrogation to recovery rights after CSV payments (s 54).

Operational checklist for practitioners advising clients:

Confirm whether a building has been notified to CSV or whether a municipal building surveyor has initiated a referral (s 27).
If invited to register, complete the prescribed application form and supply supporting documentation promptly; document all communications with CSV (s 29).
If a grant is offered, obtain and review the funding agreement against prescribed terms and confirm the scope of subrogation rights, monitoring conditions and completion certification clauses (s 30; s 54).
Track statutory timelines for notices and Ministerial approvals; prepare to escalate administrative review or legal remedies if CSV fails to meet procedural obligations (ss 29(7), 30(5), 32-34).
For permit applicants, ensure application cost breakdowns are accurate and complete where multiple building classes are involved and be prepared for levy reassessment processes (ss 57B-57D, 57E, 58A).
For board members and staff, maintain full records of disclosures and minutes and ensure strict adherence to information governance procedures to avoid penalties under ss 21, 38 and 39.

Compliance will depend heavily on the content of the regulations and prescribed forms. Practitioners should obtain and review the current regulations, prescribed forms and CSV operational guidance as soon as they are available and update checklists to reflect their content.

Cladding Safety Victoria Act 2020

Plain English Summary

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Cladding Safety Victoria Act 2020

Source text: opening excerpt

1 Cladding Safety Victoria Act 2020

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

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How to comply