Hundreds of millions of taxpayer dollars will be spent to deal with the flammable cladding crisis in Victoria, where about 500 buildings need rectification work to be made safe.
Premier Daniel Andrews has announced a $600 million package to fund the work, and was asking the Commonwealth to cover half of that cost.
But Canberra has resisted the request for cash, with Treasurer Josh Frydenberg saying building regulation was a state issue and that the Federal Government "would not pick up the bill".
To make up for the $300 million shortfall, Victoria will increase a levy on building permits on larger buildings with works worth more than $800,000.
The cost increase for a two-bedroom apartment worth $610,000 would be $2,200
but low-risk buildings, such as townhouses, would be excluded.
The announcement is a win for
owners of buildings that have combustible cladding, who were facing huge rectification costs — but consumer advocates warn the budgeted funds will not go far enough.
The move was among 35 recommendations made by the Victorian Cladding Taskforce, headed up by former Liberal premier Ted Baillieu and former Labor deputy premier John Thwaites.
Mr Andrews wants the issue on the agenda at the next Council of Australian Governments (COAG) meeting in August, and said he had written to Prime Minister Scott Morrison, saying the issue was "above politics".
"This isn't about playing politics, this is a genuine request,'' Mr Andrews said.
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