Dangerous cladding banned on multi-storey buildings in Victoria

High-risk cladding has been banned by the Victorian Government in a bid to reduce fire danger for multi-story developments.

Flammable aluminium composite panels and rendered expanded polystyrene are now banned for use as external wall cladding.

Planning minister Richard Wynne said the move would keep more Victorians safe and see the state's building standards lift to some of the best in the world.

"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," Mr Wynne said.

"This ban will ensure new developments are built to the highest standard to keep Victorians safe."

Building companies that use the prohibited materials will face fines up to $400,000 while individuals could be fined up to $80,000.

"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," Mr Wynne said.

The newly instated ban will apply to apartment buildings, aged care facilities, hotels and other residential buildings two or more storeys high.

The materials are also prohibited on office buildings, shopping centres, warehouses, factories and car parks with three or more storeys.

Flammable cladding was the cause of a 2014 fire at Docklands' Lacrosse building and a 2019 blaze at the Neo200 building in Melbourne's CBD.

The hazardous materials are also blamed for the Grenfell Tower blaze in London which killed 72 people.