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Asset protection levy and securities (bonds)

If you want to do building work worth more than $10,000 on your property, you must pay a levy. This is called the asset protection levy.

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Your building surveyor will notify us when you’ve been issued a building permit. When notified, we will contact you about paying the levy. You must pay the levy before you start building works.

Depending on your works, you may also be asked for a security payment. This is made as a bank guarantee or financial deposit, also called a bond.

If your works could affect a public tree, you might be asked to pay a tree protection security.

These measures help us make sure public assets are not damaged by building work. 

Levy amount

What you must pay for the asset protection levy depends on the value of your building work. 

You must include labour and materials in your calculations for the value of work. 

Levy amounts are reviewed annually. 

Value of building work                  Levy amount              
$10,001 to $100,000$351.60
$100,001 to $500,00$461.30
$500,001 to $1m$681.00
More than $1m$1317.90

Pay the levy

Your building surveyor will notify us when you’ve been issued a building permit. When notified, we will send you a letter about paying the levy.

You must pay the levy before you start building works. 

To pay the asset protection levy fill in the form:

Submit the form by email to building@melbourne.vic.gov.au 

You can also submit the form in person or by mail.

Submit the form in person

You can submit the form in person at:

Melbourne Town Hall Administration Building
120 Swanston Street, Melbourne

By the form by mail 

To submit the form by mail, post it to:

Planning and Building City of Melbourne 
GPO Box 1603
Melbourne VIC 3001

If you don’t pay the levy

If building works start without payment of the levy, you can be fined. 

We will assume there was no existing damage to public assets before the building works. 

Find out how to respond to a building infringement

Security payments

If your works could impact our assets, you may be asked for a security payment. 

This is at our discretion, or if your project requires: 

  • a Construction Management Plan (CMP) 
  • public precautions over the street alignment such as hoardings, gantries or scaffolds. 

Security payments are made as a bank guarantee or financial deposit, also called a bond. 

We will tell you what to do if you need to make a security payment. You must make this payment before you start works. 

Security amount 

The amount is based on the repair or replacement value of assets impacted by your project. It applies to all works associated with the project. 

This includes work by the principal contractor, subcontractors, service providers and utilities. 

Bank guarantee requirements

The bank guarantee is to be issued to City of Melbourne ABN 55 370 219 287.

The bank guarantee must be:

  • an original, from a recognised Australian bank, operating under the Banking Act issued by APRA
  • unconditional, with no end date
  • executed (i.e. signed and dated with the bank stamp).

Insurance bonds are not accepted.

An acceptable bank guarantee is to be supplied to a representative from either City of Melbourne's Urban Forest and Ecology branch or Site Services, located at Council House 2.

Reports and inspections 

Before you start works, we will record the condition of assets that could be impacted. This is the dilapidation report. 

We may visit your site at any time to inspect assets for damage. 

We may use video to check if damage was caused by your works. This is a CCTV survey. 

We will inspect our assets after you request the release of your security. 

The security will not be released until assets are reinstated to our satisfaction. 

Continuing projects 

If the project will continue after your works, another entity must make a security payment. 

Your security will be released after payment is received from the other entity. 

Security release

When your works are complete, your project arborist must complete a final inspection and you must submit their project completion report. We’ll also ask you for an occupancy permit or certificate of final inspection. 

We must be satisfied that trees have been inspected and confirmed not to have been impacted by works before we release your security. 

To get your security payment released, log in to City of Melbourne ServicesOpens in new tab

For applications submitted before May 2022, please complete the security release form:

Submit the form by email to siteservices@melbourne.vic.gov.au

You can also submit the form in person, by mail or by fax.

In person or by mail:
Construction Management Group (Site Services)
City of Melbourne
Level 3, Council House 2
240 Little Collins Street
Melbourne VIC 3000 

Tree protection

You will need to pay a tree protection security if: 

  • your works encroach on a tree protection zone 
  • we think your works might impact a public tree. 

In these cases, you will also need to complete a tree protection management plan. 

To find out more about tree protection zones, read the tree protection fact sheet (DOC 878 KB)

For more information on tree protection management plans, read the tree protection information for developers and builders (PDF 43 KB).

If you damage public assets

If public assets are damaged during works on your property, you or your builder may be fined. 

We may direct you to repair the assets within a specified timeframe. 

We reserve the right to undertake rectification works. We will seek to recover costs. 

We can draw from your security to ensure fees or costs are recovered. 

If the cost of repair or replacement exceeds the security, we can invoice you for the extra cost. 

We may take legal action if invoices remain unpaid. 


Code of Practice for Building, Construction and Works

The Code of Practice for Building, Construction and Works in the City of Melbourne sets out all safety and amenity requirements when using or impacting public space for any kind of building, construction or general works.

These requirements are intended to protect the public and our property around sites where works are occurring.

More information

To find out more about the asset protection levy, email building@melbourne.vic.gov.au.

For information about security payments, call 03 9658 9658 or email siteservices@melbourne.vic.gov.au.

our acknowledgement

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The City of Melbourne respectfully acknowledges the Traditional Owners of the land we govern, the Wurundjeri Woi-wurrung and Bunurong / Boon Wurrung peoples of the Kulin and pays respect to their Elders past and present. 

 

We acknowledge and honour the unbroken spiritual, cultural and political connection they have maintained to this unique place for more than 2000 generations.

We accept the invitation in the Uluru Statement from the Heart and are committed to walking together to build a better future.