A $260 million renovation of the Reserve Bank of Australia’s headquarters is on track to cost taxpayers almost $500 million, as the discovery of asbestos forces the central bank to embark on the highest-risk and most expensive option for the redevelopment of its Martin Place building.

The RBA received approval from federal parliament in 2020 for a much-needed renovation of its head office at 65 Martin Place in the Sydney CBD. The office was purpose-built in 1964 but now falls short of modern building standards.