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When Sarah and Nick Wilms found out they were expecting a second child, they decided they would sell the parcel of land they had planned to build their dream home on.
They had been living in North Wonthaggi since 2020 and purchased a separate block of land within the same housing estate the following year.
But the couple has been left in limbo after both blocks were put under an Environmental Audit Overlay (EAO) by the Victorian government, which has brought down the value of sites in the area.
"We're about to go down to a single income … but who will want to buy our block of land?" Ms Wilms said.
"We're really unsure what the value of our block is and how we go about trying to sell it."
The EAO affects about 250 properties in the Wonthaggi North East Precinct and has been applied to land that may be at "high or medium risk of potential contamination".
The EAO requires landowners to conduct an environmental audit or a Preliminary Risk Screen Assessment (PRSA) before any building permits can be obtained, or works commence on the site.
About 100 people attended a rally in North East Wonthaggi on Sunday, joined by Victorian Opposition leader John Pessuto and other Liberal Party members.
Notified by builder
One of the event organisers, Liam Martin, was one of the first residents in the area to find out about the overlay when his builder notified him of the need to conduct an environmental assessment, which could cost up to $80,000, prior to building on his land.
"I was devastated. I'd put all my life savings into this land. It couldn't have come at a worse time," he said.
"I had plans approved, I had soil tests done, I'd had a contract signed.
"I've got things overshadowing in my head such as building price rises, which are making it even harder for young people to get a start in the market."
The Victorian Planning Authority (VPA) applied the EAO in an amendment report published in mid-January, despite an earlier report for the Bass Coast Shire Council by consulting group GHD identifying potential contaminants in 2016.
The GHD report identified introduced fill or stockpiled soil, potential mine waste and general storage of waste material or scrap on some of the lots in the area.
The VPA sought advice from the Environment Protection Authority as to whether the EAO was correctly applied to the properties and whether it could be reduced or removed.
"Based on the information available to it, EPA was not able to draw definitive conclusions about the level of contamination at the developed land, and therefore unable to make recommendations about the sustainability of the EAO," an EPA spokesperson said.
For the overlay to be altered, the EPA has stated further investigation using a PRSA conducted by an environmental auditor needed to be completed.
"The focus for the VPA is to continue to assist Bass Coast Shire Council address the concerns of the Wonthaggi community," said VPA regional Victoria executive director Dean Rochfort.
"By working with the EPA and the Department of Transport and Planning to identify potential solutions to this issue and to give impacted landowners greater certainty as quickly as possible."
Assessments to begin this week
The Bass Coast Shire Council said it had appointed an independent environmental auditor to conduct a PRSA, which would take about six weeks and was scheduled to begin early next week.
Chief executive Greg Box said there was no evidence of contamination in the soil.
"Council's ultimate goal is to have the overlays removed from the properties and the fastest way to hopefully get to that point is to carry out a Preliminary Risk Screen Assessment," Mr Box said.
Minister for Planning Sonya Kilkenny wrote in a letter to an affected resident that the VPA had offered to co-fund a PRSA being led by the council.
Opposition promises to scrap overlay
Mr Pesutto said if the Liberal Party was to win the next state election, they would scrap the overlay.
"We will remove it but the immediate challenge we have is there's no state election until 2026," he said.
"But we are going to put pressure on the government and in the parliament.
"To every problem there is a solution. We will work with you to get you the outcome you deserve and need."
Opposition spokesperson for planning James Newbury urged residents to make complaints to their local member of parliament.
"They've literally stolen $150,000 out of your pocket," he said.
"We need your pressure to go to the government today."