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Victorians are on the hook for an extra $395 million to rebuild the Formula 1 pit facilities at Albert Park after asbestos was discovered in the existing building – more than doubling the project’s original cost.
The state government agreed to the $350 million pit redevelopment in 2023 as part of negotiations with Formula 1 owners Liberty Media to ensure the Grand Prix stays in Melbourne until 2037.
Victorian taxpayers also paid $100 million in both 2023 and 2024 to cover the shortfall in revenue from staging the grand prix, raising questions about the state’s value for money from the event.
Demolition of the existing pit building is set to begin shortly after this year’s event finishes on Sunday, with the construction of new garages, administration facilities, a media centre and sports facilities expected to take two years.
But a report by the Victorian Auditor-General’s Office released on Wednesday revealed that in June 2025 the project discovered “the widespread presence of asbestos-containing material … throughout the project site”.
In August last year the managing contractor proposed a waste management plan costing $395 million. That was $115 million more than targeted just for the cleanup, and is more than the state’s original $350 million commitment to the project.
The report says the asbestos discovery presents “significant budget and program challenges” and will require Victoria to reconsider the cost of the project’s budget.
“The project team is assessing value management options however it is likely that these will result in breaching the AGPC [Australian Grand Prix Corporation] contract with F1 and/or not delivering scope previously announced by government,” it says.
Peter Logan, from the Save Albert Park group, said the additional cost to Victoria was a disgraceful waste of money to host an event that degraded one of Melbourne’s finest assets.
“They just can’t stop, they can never say enough is enough,” he said. “It’s a huge waste of money because the revenue – not even the profits – will be going straight to Liberty Media.”
Logan said the race locked Melburnians out of Albert Park for three weeks, with another four months of heavy trucks and machinery on site to prepare for and then pack down the event.
“Albert Park is key to Melbourne’s identity as a place with beautiful parks. It’s like Central Park to New York. [But] it’s just disappearing,” he said.
Several large trees were cut down near the existing pit facilities last year to prepare for the redevelopment.
The Australian Grand Prix Corporation – which is chaired by former Andrews government major events minister Martin Pakula – referred questions to the state government. The state government has been contacted for comment.
More to come
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