Victoria’s ban on the use of high-risk cladding products in new multi-storey buildings takes effect today, with the move expected to produce a net economic benefit of $1 million annually from reduced insurance costs.

The Andrews Government decided on the ban after a five-month consultation process last year.

“This ban will ensure new developments are built to the highest standard to keep Victorians safe while we continue to rectify existing buildings through our world first cladding rectification program,” Planning Minister Richard Wynne said in a statement today.

“We’re continuing to act on the most up to date expert advice on cladding products and anyone caught flouting this ban will face significant penalties.”

“These products are a high risk when used inappropriately or installed incorrectly – that’s why we’ve acted to ban them for new multi-storey buildings.”

The Victorian Building Authority will enforce the cladding ban in its role as Victoria’s building regulator, with penalties of up to $400,000 for significant breaches.