The Allan Labor Government is delivering a brand-new Melbourne Indoor Sports Centre at Albert Park.
The new centre will double as the Formula 1 Pit Building during the Australian Grand Prix each year.
Minister Dimopoulos today announced demolition of the existing building will begin on Friday 27 March.
The current facility was built in 1995 when Melbourne first hosted the Formula 1 Australian Grand Prix.
It will be replaced with a modern facility designed to support both community sport and world-class motorsport.
The centre will feature seven indoor multi-purpose courts with change rooms - two more courts than the current facility.
It will feature higher ceilings to cater for more sports, alongside improved clubrooms for tenant clubs.
The centre will be managed by the State Sport Centres Trust, which operates facilities across Albert Park including the Melbourne Sports and Aquatic Centre and Lakeside Stadium.
During the Australian Grand Prix, the building will transform into the event's pit building with 14 garages, a new race control and upgraded race administration and media spaces.
The world-renowned Paddock Club will also expand to host up to 5,000 patrons each day.
This year's Formula 1 Australian Grand Prix again broke attendance records.
A total of 483,934 fans attended across the four-day event.
Secured in Melbourne until 2037, the Formula 1 Australian Grand Prix is a cornerstone of Victoria's $3.3 billion major events calendar - supporting thousands of jobs and showcasing the state to the world.
Construction will continue throughout 2026 ahead of the 2027 event, supported by a mix of new, existing and temporary facilities.
For further information on the project visit development.vic.gov.au/projects/albert-park.
As stated by Minister for Tourism, Sport and Major Events Steve Dimopoulos
"The new Melbourne Indoor Sports Centre will give the Albert Park community a bigger and better home for local sport, while delivering modern race facilities for the Australian Grand Prix."
"We're investing in the future of the Australian Grand Prix so Melbourne can continue hosting this world-class event and showcasing Victoria to millions around the globe."
As stated by the Member for Albert Park Nina Taylor
"Redeveloping the Albert Park Pit Building will mean important new sporting facilities being delivered that the Albert Park community can enjoy year-round."
