G'day Norm,
Vic has two levels of vehicle write-offs [some States, NSW for one, only have Level 2];
1. 'repairable write-off', where it is possible to repair and re-register the vehicle, but there are quite a few VicRoads hoops to jump through to do it. These become 'inspected repairable write-offs' after re-registration, but they are still listed on the register [aka WOVR].
2. 'statutory write-off' - vehicle can only be parted-out; the VIN is cancelled, so the vehicle can never be re-registered in Oz.
Personally, I wouldn't touch it, as my bike mech tells me that even Level 1 write-off repairs can be a real minefield, particularly as far as paperwork costs go. And that one sounds like it's Level 2.
VicRoads say that they don't permit motorcycles to be re-framed, which would rule out swapping the usable bits to a new OEM frame; but AFAIK it is still legal [with the right paperwork] to fit an engine from a wrecked bike into a custom-made frame, so that might be a loophole.
Would still cost plenty though, as it will need to undergo VASS certification [the old 'Engineer's Certificate' for modified/custom builds].
VicRoads has an index page to their write-off info;
https://www.vicroads.vic.gov.au/registration/vehicle-modifications-and-defects/written-off-vehicles
