The demolition of the Melbourne pit building is set to cost $395 million.

      The current structure does not conform to the required standards.

      The Albert Park pitlane building will be torn down right after this weekend’s Australian Grand Prix, and its replacement has seen a significant increase in costs due to the discovery of asbestos at the site. A report from Victoria’s auditor-general indicates that the overall expense for asbestos removal and constructing a new facility has surged to approximately $395 million, which is $115 million over the initial budget. The building, constructed in 1995, is no longer compliant with the standards set by Formula 1 and the FIA.

      Victorian Treasurer Jaclyn Symes stated that the government has little option but to proceed with the costs. "Unfortunately, there’s not much you can do apart from address the asbestos issue when it arises, to ensure a safe workplace and building moving forward," she commented on ABC Melbourne Radio.

      For the 2027 race, new garages will be built and a temporary Paddock Club facility accommodating 2,500 guests will be established. The complete new building—which will include hospitality space for 5,000 attendees and 14 garages—is scheduled for completion before the 2028 Grand Prix. However, the auditor-general’s report cautioned that the budget overrun may necessitate scaling back the project, which could potentially violate Melbourne’s contract with Formula 1 or result in inadequate facilities compared to what the government had previously announced.

      Despite ticket sales nearly tripling over the last ten years, the Australian Grand Prix still operates at a loss, costing the state government over $102 million to support it in 2024 alone.