Victoria must cover an additional 395 million Australian dollars to rebuild the Formula 1 pit facilities at Albert Park after asbestos was found in the existing building, more than doubling the original 350 million dollar budget.

Critics, including the Save Albert Park group, call the extra costs wasteful, arguing most event revenue benefits Liberty Media rather than Victoria and that the project disrupts Albert Park during setup and teardown.

The redevelopment has involved removing large trees near the pit facilities to make way for construction, highlighting environmental and visual impacts alongside the budget overrun.

The extra funding follows Victoria’s 2023 agreement with Liberty Media to keep the Grand Prix in Melbourne through 2037 and to cover shortfalls in event revenue, with 100 million dollars provided in both 2023 and 2024.

Demolition of the current pit building is slated to begin after this year’s race, with about two years allocated for constructing new garages, administration facilities, a media centre, and related sporting facilities.

The AGVO notes that the asbestos discovery creates significant budget and program challenges and may force Victoria to reconsider the project’s total cost or potentially breach the AGPC contract with F1 or alter the announced scope.

In June 2025, the Victorian Auditor-General’s Office reported widespread asbestos across the site, prompting a revised and more expensive waste management plan in August 2024 that cost 395 million dollars, 115 million more than originally targeted for cleanup.