Victoria’s Off-the-Plan Duty Concession reduces stamp duty for eligible buyers by excluding post-contract construction costs from the property’s dutiable value. Recent updates extend eligibility to all buyers until October 2025.
Understanding the Off-the-Plan Duty Concession in Victoria
The Victorian Government offers a unique opportunity for buyers of off-the-plan properties to reduce their land transfer duty (commonly known as stamp duty). This concession applies to certain eligible contracts and can provide significant savings for homebuyers and investors alike.
What is an Off-the-Plan Purchase?
An off-the-plan purchase refers to buying a property, such as a house, apartment, or townhouse, before construction is complete or has even started
Eligible property types include:
- Land and building packages.
- Units in residential towers.
- Low-rise apartments and unit complexes.
- Refurbished lots.
How Does the Concession Work?
The concession reduces the dutiable value of the property, which is the base used to calculate the stamp duty. Typically, the dutiable value is the greater of the purchase price or market value. However, under this concession, the dutiable value is reduced by the cost of construction or refurbishment incurred after signing the contract.
Eligibility Criteria
Eligibility depends on:
- Date of Contract: The date of signing affects whether you qualify and which rules apply.
- Type of Property: Must meet thresholds based on property value after applying the concession.
- Purpose of Purchase: Some contracts require the property to be your principal place of residence.
- Recent Updates: Temporary Concession
Key Points by Contract Date
- Contracts Before July 1, 2017: Broad eligibility for all purchasers and property types, including investments.
- Contracts Between July 1, 2017, and July 1, 2023: Thresholds and residency requirements apply.
- Contracts After July 1, 2023: Eligibility ties to first home buyer or principal place of residence concessions.
- Temporary Concession (Oct 21, 2024 – Oct 20, 2025): Expanded eligibility to all buyers.
