Up to 1400 non-government Victorian buildings could have potentially dangerous panelling like that found in London's fatal Grenfell Tower.
Eight Victorian hospitals definitely need to have the flammable cladding replaced.
The Victorian Cladding Taskforce, chaired by former premier Ted Baillieu and former deputy premier John Thwaites and created in July after the Grenfell fire, on Friday released an interim report into the extent of non-compliant cladding across Victoria.
"Cladding is much more complicated and more widespread than we first thought," Planning Minister Richard Wynne told reporters.
"And we're going to get on top of it because there is nothing more important than public safety."
Mr Wynne said the report painted a picture of a culture of non-compliance in the building industry spanning decades.
The taskforce found 1369 buildings are likely to have aluminium composite panels with a polyethylene core or expanded polystyrene panels, but need inspecting to confirm the materials are present.
The buildings have not been named.
"I want to make it clear though, these buildings have been declared safe to occupy," Mr Wynne said.
A Department of Health and Human Services audit of its 1100 hospitals and housing commission towers found eight hospitals had non-compliant cladding that needed replacing, while the towers were given an all-clear.
Twelve other hospitals remain under assessment.
All of the affected hospital sites will be rectified within three years.
The state opposition criticised the government for taking too long to fix the risky cladding in the state's hospitals.
"The fire risks are clear and yet Daniel Andrews has been dragging his feet on removing flammable materials," opposition health spokeswoman Mary Wooldridge said.
Mr Wynne said the Victorian Building Authority, which has been criticised for not properly dealing with non-compliance and the danger, would have to "lift their game" and has been allocated $5 million for a statewide audit.
Limits will be put on the materials being used on buildings higher than two storeys.
The Metropolitan Fire Brigade wants the non-compliant cladding completely prohibited by law, but otherwise welcomed the report.
"This is a strong first step in what we expect will be a long process," acting Chief Officer Greg Leach said.
A pilot audit of buildings in six council areas - Greater Dandenong, Monash, Moreland, Melbourne, Port Phillip and Whittlesea - is also under way and the taskforce recommends it continues while it further examines the issue.
HOSPITALS BEING REMEDIED:
* The Royal Women's Hospital
* Werribee Mercy Hospital's Catherine McAuley Centre
* Two buildings at Casey Hospital
* Monash Medical Centre Block A at Clayton
* Acute Services building at Sunshine Hospital
* Block F at Frankston Hospital
* North Wing Expansion at Royal Melbourne Hospital
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