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Building Upgrade Finance


Commercial building owners in the City of Salisbury can access private finance for building upgrades through the South Australian Government’s Building Upgrade initiative.

Building Upgrade Finance is an innovative way to finance an environmental upgrade for a building that is at least two years old. It allows building owners to access longer-term fixed-interest finance, as well as share the costs and benefits of the upgrade with their tenants.

The mechanism can help building owners to improve the environmental performance of their property assets without the risks and negative cash flow implications of traditional finance, as well as reduce operating costs, increase yields, help attract and retain tenants, and increase asset value.

As part of this finance, a contract known as a building upgrade agreement (BUA) is entered into by the building owner, the lender and the City of Salisbury. Under this contract, the lender advances funds to the building owner to complete the upgrade works and the loan is repaid through the City’s existing rates collection process, as an environmental upgrade charge (BUC).


You are eligible to enter into an environmental upgrade agreement with the City of Salisbury if:

  • The proposed works are consistent with the relevant provisions of Schedule 1B of the Local Government Act 1999
  • The proposed works are consistent with the relevant objectives of Council’s City Plan.
  • The building is located in the City of Salisbury Local Government Area and was constructed at least 2 years ago. 
  • The building is a prescribed building under the Local Government Act 1999, used primarily for commercial, industrial or other non-residential purposes.
  • There are no outstanding Orders that have been issued in relation to the Building pursuant to any relevant legislation.
  • There are no encumbrances noted or registered on the title for the Building which may impact on the City of Salisbury exercising its enforcement rights.
  • The Building Owner has no overdue debts to City of Salisbury and is not in dispute with City of Salisbury regarding any matter.
  • The Building Owner has consulted City of Salisbury to ensure that all property development compliance requirements have been met or will be met prior to the earlier of the date that the BUA is executed by the Building Owner, City of Salisbury and Finance Provider or the Commencement Date.
  • The Building Owner agrees to be bound by the requirements of the BUA (including any additional conditions as required by City of Salisbury) and Council’s Building_Upgrade_Finance_Policy

Full eligibility criteria are listed in the City’s building upgrade agreement policy.


Once environmental upgrade works have been identified the building owner or manager should first talk to a lender and confirm in-principle finance approval.

  • Check with your existing lender whether they offer building upgrade finance through an environmental upgrade agreement.
  • Contact Council’s Manager Economic Development & Urban Policy on 8260 8205 to discuss whether your building meets the requirements of the City's environmental upgrade agreements policy.
  • If eligibility is confirmed an BUA application form will need to be submitted.
  • If approved, the BUAtemplate agreement will need to be completed.

The City of Salisbury charges an administration and processing fee for all BUAs entered into. The fee amount is determined by the length of the BUA loan.  The application and administration fees are paid as a part of the first loan repayment.  Refer to the Building Upgrade Finance Schedule of Fees  for details of the administration and other fees charged by Council.

Post execution

Once the BUA contract is executed by all three parties (building owner, finance provider and council), the funds are released to the building owner and the upgrade works are undertaken.

Part of Council’s role in facilitating the repayment of the loan through the rates system is recovery of unpaid repayments. Council’s Enforcement Procedure outlines this process, and forms a part of the EUA contract.