Federal government says no to $300 million Victorian combustible cladding compensation

The Federal government has refused to give $300 million to help Victoria's efforts to replace combustable cladding on 500 at risk apartment blocks.

"It's a bit rich now for them or any state to say someone else has to fund a problem that they created," Industry Minister Karen Andrews told The Australian Financial Review.

Yesterday it was reported the Andrews government asked to get the Morrison government to match the $300 million that they have put aside for the remediation works.

It is understood that if the Morrison government said no, there would be an increase to the building permit levy over the next five years.

The new body, Cladding Safety Victoria, will oversee the fund and will be getting to work within the next few weeks on the 15 highest risk buildings.

The move is among 35 recommendations made to the Victorian Government after 2,227 buildings had been inspected as of July 5.

Of those, seven percent were rated as an extreme risk, 40 percent a high risk and 38 per cent moderate risk.

The data, presented at an industry conference, showed one evacuation order had been issued for a private building.

Emergency orders for urgent works were made on 51 properties with building notices issued on a further 387. 

The 35 recommendations were made by the Victorian Cladding Taskforce, headed up by former Liberal premier Ted Baillieu and former Labor deputy premier John Thwaites.