Hundreds of residents and block owners affected by audit overlay applied to properties as part of Wonthaggi Northeast Structure Plan

Thousands of Wonthaggi residents and block owners could be forced to pay $80,000 or more to deal with an overlay that’s been slapped on their properties over fears of contaminated soil.

Hundreds of Bass Coast residents and landowners have fallen victim to an overlay that identifies possible contaminated land, which could cost them each up to $80,000 or more to have the overlay satisfied.

The environmental audit overlay (EAO) was applied to parts of the Wonthaggi Northeast Precinct Structure Plan by the Victorian Planning Authority (VPA) on January 18 this year, after 444ha of new subdivided residential land was gazetted.

The overlay was put in place after it was discovered parts of the area could have contaminated soil due to a history of farming and grazing on the land.

The VPA, as part of the planning authority for amendment C152, determined that some of the land within the precinct carried a medium or high potential for contamination, therefore an overlay was applied.

It’s understood that Bass Coast Shire councillors were not unaware of the overlay and were scheduled to receive a briefing on the implications of the planning change in April.

But local developers, builders, conveyancers and planning consultants were also not made aware of the implications of amendment C152 and the introduction of the overlay.

Another issue that rose was residents have been living in homes on the land for a number of years, and contamination reports did not appear in section 32 upon their purchase.

The layout of the Wonthaggi Northeast Precinct Structure Plan.

Many anxious residents were also not informed until the end of April that an overlay would be applied to their property, three months after it was announced.

The overlay could affect up to 5000 properties and blocks of land — including existing homes, titled blocks and dwellings already in construction in the precinct.

The estates affected include Parklands, Powlett Ridge, Summerfields and Northern Views.

Resident Amy Wagenaar told the Herald Sun thousands of people could be affected.

“You’ve got the titled land where half are building and half can’t build and then other stages where the land hasn’t been titled but they’re nearly finished the subdivision works,” Ms Wagenaar said.

Ms Wagenaar and her husband Brett purchased their vacant land in May 2020 and moved into their home in September that year.

She said she was only informed of the overlay through social media and was given no chance to lodge a submission.

Wonthaggi north residents Brett and Amy Wagenaar have been living in their home since September 2020, and were not informed on the EAO applied to their property until April this year. Picture: Jack Colantuono

“At the start I didn’t think much of it, but as you look into it more and the structure plan, and there was a contamination report completed (in 2016) that raised the issue,” Ms Wagenaar said.

“Then you just wonder how it got this far — how were we able to build on this land without any environmental audit or risk assessment reports completed and how was that not done at the subdivision stage? Or at least the rezoning?

“We shouldn’t be in this situation where we don’t know if the land is contaminated or not.”

Ms Wagenaar said the land had already been “disturbed”.

In the event where a homeowner decides to sell up, the overlay will show up on their section 32.

“That’s just going to bring up questions with anyone wanting to buy — they’re going to read that and say, ‘well what does this mean? is your land contaminated?’ and we don’t have an answer for them,” Ms Wagenaar said.

She said in order to prove her land wasn’t contaminated, she’s required to get a risk assessment completed.

But that’s another whole process for owners to go through.

A preliminary risk screen assessment (PRSA) can cost more than $15,000 per property, and the price will vary based on individual circumstances and the organisation undertaking the assessment.

If the PRSA states that an environmental audit is required, the costs are usually higher, and if any levels of contamination are detected, residents and block owners would have to fork out a lot of money.

To meet the requirements of the overlay, owners must go through a certified consultant from the Environmental Protection Authority (EPA), which the audit then needs to be approved by them.

“It doesn’t actually remove the overlay from your land, it means you have satisfied the requirements of the overlay, that it’s been approved by the EPA and council and you have proven your land is not contaminated,” Ms Wagenaar said.

“Anyone you speak to now, the first thing that comes up is the overlay.

“It would be a stressful time for people that have got titled lots.

“They haven’t budgeted to be able to build their house and do this environmental audit report.”

The estates affected in the Wonthaggi Northeast Structure Plan by the EAO include Parklands, Powlett Ridge, Summerfields and Northern Views. Picture: Jack Colantuono

The pair added if homeowners wish to have a pool or shed constructed, they would have to get a building permit issued by a building surveyor due to the overlay.

Brandi Rinaldi, who is renting in Wonthaggi, had her Parklands estate land settled in March this year.

Ms Rinaldi was only informed through an email from her developer over a week ago about the overlay and Metricon had to “shelf” her job because of it.

“We can’t even build now, or sell — no building permits are being issued because of the environmental overlay — what makes it really difficult is my husband and I have been trying to buy and build since 2021,” she said.

“We’re just trying to put a roof over our kids — the house that we’re renting, the landlord is waiting for us to leave so they can subdivide.

“No one said anything — but apparently this has been public knowledge since 2016.”

Ms Rinaldi's 12-year-old daughter, Marisa, was upset for her family after hearing about the EAO, where their dream home has been "shelved" by Metricon Homes. Picture: Jack Colantuono

Mr Rinaldi did not understand why she was able to settle on a block that had the overlay applied to it, knowing they wouldn’t be able to build.

“Was is just so they could sell their block?,” she said.

Her husband Rocco has been working tirelessly in Warrnambool to help take their 12-year-old daughter Marisa overseas to compete in sword fighting competitions.

But their expenses are rising, and the couple have already put $6000 towards their mortgage.

A background report from 2016 revealed that a contamination possibility audit was required to be completed by all independent developers.

The report also highlighted a process of contamination from a “low”, “medium” to “high” rating, where particular properties in the report fell under the medium and high ratings for potential contamination between 2016 and 2019.

An EPA spokesperson said the concerns were the highest priority for the authority and were working out if the “blanket ban EAO” was appropriate for where it’s been placed.

The EPA has scientists studying all the data that have been provided to them from the VPA and council.

The spokesperson added the EPA was hoping to achieve an outcome where it can recommend to the VPA the overlay is safe to be lifted on certain parts of the area.

A "low", "medium" and "high" level of contamination results on some of the area in the Wonthaggi Northeast Precinct Structure Plan background report 2016.

When asked about the possible contamination report and the rating of low, medium and high in 2016, the spokesperson confirmed the EPA was working behind that rating and would like to achieve something similar to all the medium level ratings, in order to request the VPA to lift the overlay off titled land.

The EPA said it would set a structure in place of what they determine high risk from a scientific point and their high risk report won’t be what the 2016 report said was high risk at the time.

The council’s chief executive, Greg Box, said the overlay required developers or homeowners to complete a risk screening survey before council can approve planning permits.

“It does not prevent homes being built on the land,” Mr Box said.

“While council is unable to alter the requirements of an EAO, we are in constant discussion with the Victorian Planning Authority to resolve the situation urgently.

“We are also working with developers to keep individual landowners informed.

“We understand this is a stressful time for homeowners in the affected areas, and those who hold titles to build.”

Mr Box added the EPA provided council and the VPA with an update on Thursday.

“They are continuing their work to review the information available, specifically the 2016 GHD background report, to provide advice to VPA about whether the land requires an EAO,” he said.

“The EPA confirmed in this meeting that they will need until May 22 to finish this process.”

A Victorian government spokesperson said they were aware there were a number of affected landholders and it’s a priority on getting a better outcome for them.

“The Victorian Government, Bass Coast Shire Council, the VPA and the EPA are urgently working through this issue and we will have more to say soon,” the spokesperson said.

“We are aware of potential land contamination to existing properties.

“The Department of Transport and Planning (DTP) and VPA are continuing to assist Bass Coast Shire Council on this matter.”

Council has shared a page on its website for affected community members.

Dozens of home and landowners held a public meeting in Wonthaggi on Saturday, where they addressed their concerns of the overlay. Picture: Jack Colantuono

Home and landowners held a public meeting in Wonthaggi on Saturday, where they discussed their concerns and formed a committee of spokespeople.

Member for Eastern Victoria Region Renee Heath, Member for Bass Jordan Crugnale, Member for Narracan Wayne Farnham and former member of the Victorian Legislative Assembly Alan Brown all showed up in support.