Cladding and Fire Safety — What Apartment Buyers Must Know (Australia 2026)
The 2017 Grenfell Tower fire in London and subsequent investigations in Australia revealed that many high-rise buildings had been clad with combustible aluminium composite panels (ACP) or expanded polystyrene (EPS) in ways that significantly increased fire risk. Cladding issues remain a serious financial and safety concern for apartment buyers.
What Is the Cladding Problem?
Aluminium composite panels (ACP): A sandwich panel with an aluminium outer skin and a core that, in the problematic variants, contained polyethylene — highly combustible when exposed to flame. These were widely used in Australian construction from the 1990s through to approximately 2018.
Expanded polystyrene (EPS) cladding: Also known as foam cladding — used in external insulation and finishing systems. EPS is combustible and poses fire risk if not protected by an appropriate render.
Following Grenfell, Australian state governments undertook audits of high-rise buildings. Many were found to have combustible cladding — requiring remediation ranging from replacement of panels to the installation of additional fire suppression systems.
Buildings Most Likely Affected
- High-rise apartments (typically Class 2 buildings under the NCC) built or refurbished between approximately 1995 and 2018
- Mixed-use buildings with residential upper floors
- Hotels and serviced apartments converted to residential use
- Buildings with distinctive “rainscreen” cladding finishes visible on the exterior
Lower-risk buildings:
- Low-rise apartments (2–3 storeys) — cladding still used, but fire spread risk is lower
- Buildings constructed of brick, concrete, or masonry with no ACP or EPS cladding
- Buildings post-2018 construction (built under revised standards)
How to Check If a Building Has Cladding Issues
State government cladding registers:
- VIC: Cladding Safety Victoria maintains a register of affected buildings; has a funded remediation program for some
- NSW: NSW Cladding Taskforce; Building Commissioner oversight
- QLD: Queensland government audits
- Other states: Various programs in place
Building management:
- Ask the strata manager or body corporate whether the building has been audited for cladding
- Review strata meeting minutes for any cladding mentions
- A strata inspection report will note if cladding is a known issue
Visual inspection: Visible aluminium composite panels on the exterior are not confirmation of a problem (some ACP products are non-combustible) — only a fire engineer’s assessment can confirm risk level.
Remediation — Costs and Who Pays
Cladding remediation is expensive:
| Building type | Estimated remediation cost |
|---|---|
| Small high-rise (10–20 lots) | $500,000–$2,000,000 |
| Medium high-rise (30–60 lots) | $2,000,000–$8,000,000 |
| Large high-rise (100+ lots) | $8,000,000–$30,000,000+ |
Per lot impact: $30,000–$200,000+ per lot, depending on building and whether government assistance is available.
Who pays?
- In some cases: the original developer or builder may have warranty liability
- VIC: Cladding Safety Victoria has government funding for some buildings (not all qualify)
- NSW: Building Commissioner and legal action against developers/builders
- Most cases: the owners corporation funds remediation through special levies to owners
Insurance and Cladding
Buildings with known combustible cladding have faced:
- Higher insurance premiums (some insurers have refused to renew building insurance)
- Reduced cover (exclusions for fire events related to the cladding)
- Requirements from insurers to install interim measures (sprinklers, fire watches) as a condition of cover
If a building cannot obtain insurance, most lenders will not lend on units within it — creating significant problems for buyers and sellers.
What Buyers Should Do
Before buying any apartment in a high-rise built 1995–2018:
- Obtain a strata inspection report — check for any cladding mentions
- Review AGM and committee minutes for the past 3–5 years
- Ask the strata manager directly: “Has this building been audited for combustible cladding? What were the results?”
- Check the relevant state cladding register
- Obtain a copy of the building’s fire safety compliance certificate (if available)
- Confirm the building has current, comprehensive insurance — and at what premium
Frequently Asked Questions
The building I want to buy has non-combustible ACP. Is it safe?
“Non-combustible” ACP (typically with a mineral-core filling rather than polyethylene) does not present the same fire-spread risk. A fire engineer’s report or the building’s cladding audit result should specify the core material and risk classification.
I own in a building that needs cladding remediation. What are my options?
Owners in affected buildings typically face a special levy for remediation. Options for managing the cost: pay the levy, arrange a personal loan if the levy is large, or (in VIC) apply for assistance through Cladding Safety Victoria if the building qualifies. Selling before remediation is complete may be difficult — buyers and their lenders may be wary.
New apartments marketed as cladding-free — is this reliable?
Buildings completed under post-2018 building codes should not have non-compliant combustible cladding — the NCC was amended to prohibit it for high-rise residential. However, confirm this with the building’s occupancy certificate and documentation rather than relying solely on marketing claims.
Related Strata Guides
- Building Defects in New Apartments — Your Rights
- Special Levies — What Happens When Strata Raises a Special Levy
- Strata Inspection Report — What to Look For
- Strata Title Australia Hub
This article provides general information about combustible cladding and fire safety in Australian apartments. The cladding situation is complex and varies by building. Always obtain a strata inspection report and review building records before buying an apartment. Find a solicitor through MoneySmart.