An independent review has found that a staggering $395 million must be paid to rebuild parts of the Albert Park circuit, which is due to host the Australian Grand Prix this weekend.
The 2026 Formula 1 season gets underway in Melbourne, with a series of major regulation changes set to debut for the first time.
F1 has raced at Albert Park since the 1996 season, and the circuit is popular among both drivers and fans.
The second and third sectors were re-profiled ahead of the 2022 season to make the track even faster, with the lap record set by Ferrari's Charles Leclerc in 2024.
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Part of those redevelopments was to widen the pit lane, which was one of the narrowest on the calendar due to Albert Park being a street circuit.
It is not a permanent circuit, with most of the track able to be driven on by members of the public throughout much of the rest of the year.
Weeks prior to the Grand Prix, trackside facilities, grandstands and barriers are rebuilt, before being taken down again once the racing has finished.
This year, there are plans in place to completely demolish the pit building following the 2026 Grand Prix, with a budget of around $280 million set aside for improvement works.
Development Victoria stated that the works will continue 'until the end of the 2028 event', but that the running of the Grand Prix itself will not be affected during that time period.
The work is part of an agreement reached between the circuit's organisers and F1 rights holders Liberty Media back in 2023.
However, it was reported in June that asbestos - exposure to which can cause serious health problems - had been detected in the ground.
And a report by Victoria's Auditor-General office states that costs have risen to a huge $395 million - which is $115 million more than initially budgeted for.
The report adds, however, that the Grand Prix can still fulfil its contractual obligations for 2028, writing: "Adjusting the balance of permanent and temporary scope delivered for the 2027 F1AGP, and acceleration of works, there is a pathway to deliver the AGPC contractual obligations ahead of the 2028 F1AGP and keep timelines within 4-6 months to its current approved schedule."
The $395 million bill is the responsibility of Victoria's state government rather than Grand Prix organisers, with the state's Treasurer, Jaclyn Symes, stating that this is due to a contractual agreement.
"Unfortunately, there's not much you can do apart from deal with asbestos when you find it to ensure that you're providing a safe workplace and a safe building going forward," she told ABC Melbourne Radio.
"I can point to the fact that the Grand Prix is a major economic contributor to the state, and I know that many people are going to get along to that race this weekend.
"It fills beds in hotels, and people going out for dinner, and it keeps everyone busy, and it supports thousands of jobs."
Ryan Smart