The Victorian Government has introduced a temporary land transfer duty (stamp duty) concession for off-the-plan property purchases. This measure applies to contracts signed between 21 October 2024 and 21 October 2025 and aims to broaden accessibility for a wider range of buyers, including investors, companies, and trusts.
If you’re considering purchasing an off-the-plan property, here’s an overview of the key details to help you understand this concession and how it applies.
Who benefits?
This concession is designed for buyers of off-the-plan dwellings, such as apartments and townhouses, within a strata subdivision that includes shared spaces like driveways or courtyards.
It extends to buyers who were previously ineligible, such as investors and companies. It also continues to support owner-occupiers and first home buyers who benefit from the existing off-the-plan concession.
How does it work?
The new concession allows buyers to deduct construction costs incurred on or after the contract date from the dutiable value of the property, reducing the stamp duty payable. For example: a buyer purchasing an off-the-plan property for $1 million, with $400,000 in construction costs, could deduct those costs and have their dutiable value reduced to $600,000. If construction is partially completed when you sign the contract, only the remaining costs after the contract date are deductible.
Who is eligible?
To qualify, the purchase must meet these criteria:
• The property is part of a strata subdivision with common property (e.g. shared driveways)
• The contract is signed between 21 October 2024 and 21 October 2025
• Foreign purchasers must pay the Foreign Purchaser Additional Duty (FPAD) on the full property value
Note: This concession does not apply to house-and-land packages outside a strata subdivision
Timing and contract rules
• Eligibility is based on the contract signing date, not the settlement date
• Contracts signed before 21 October 2024 are not eligible, even if settlement occurs later
• Contracts signed within the eligibility period qualify, even if settlement occurs after 21 October 2025
Example: How it works
Michelle signs a contract to buy an apartment off the plan for $1 million on 1 December 2024, before any construction work has begun. The vendor advises Michelle that $400,000 of the contract price will be spent on constructing her apartment. Michelle intends to rent out her apartment upon construction.
Michelle is able to deduct the construction costs when calculating the dutiable value of the property, which results in the dutiable value coming down to $600,000 ($1 million − $400,000).
If at the time of signing the contract construction was 50% complete, then the construction costs which can be deducted are $200,000 ($400,000 × 50%) and the dutiable value would be $800,000 ($1 million − $200,000).
Michelle is also a foreign purchaser, and therefore has to pay FPAD on this transaction. FPAD will be calculated on the $1 million purchase price.
What this means for buyers
This temporary concession provides an opportunity for buyers considering off-the-plan properties to benefit from reduced dutiable values. Understanding how this concession applies to your situation can help you make informed decisions about your next purchase.
Take the next step
For more information about your eligibility, contact our SEIVA Finance team or visit the State Revenue Office Victoria website.
This article is intended to provide general information only and does not constitute financial, legal, or tax advice. Readers should seek independent professional advice to ensure the information is appropriate to their individual circumstances.
