If you are thinking about buying an apartment or townhouse off the plan in Victoria, there is welcome news. The Victorian Government has extended the temporary off-the-plan land transfer duty concession, and it now applies to eligible contracts signed before 21 April 2027. For many buyers, this concession can meaningfully reduce the stamp duty payable on an off-the-plan purchase.
Here is a plain-language guide to what the concession is, who can use it, how it is calculated, and the practical points to keep in mind before you sign.
What is the off-the-plan duty concession?
When you buy off the plan, you are buying a property before construction is finished, sometimes before it has even started. You commit based on the plans and the contract rather than a completed building.
The temporary off-the-plan duty concession lets you deduct the construction costs incurred on or after your contract date from the dutiable value of the property. Land transfer duty is then calculated on that reduced amount rather than on the full purchase price. Because a large part of an off-the-plan price is the cost of building the dwelling, the reduction in dutiable value can be significant.
The key date: contracts signed before 21 April 2027
The concession was originally introduced for a limited period, then extended. As part of the 2026 to 27 Victorian State Budget, it has been extended again.
To be eligible, your contract of sale must be entered into on or after 21 October 2024 and before 21 April 2027. In practical terms, the last day to sign an eligible contract is 20 April 2027. Your settlement date does not affect eligibility. What matters is the date you sign.
Who is eligible?
This is where the temporary concession is more generous than the long-standing one.
The temporary concession is available to all off-the-plan purchases of eligible residential property. That includes owner-occupiers, investors, companies and trusts, and there is no property-value threshold. It was designed to benefit buyers who would not qualify for the existing owner-occupier and first-home-buyer off-the-plan concession, which continues to apply in its own right.
If you are a first home buyer, you may be able to benefit from more than one form of duty relief. It is worth having your eligibility checked properly rather than assuming, because the interaction between concessions depends on your circumstances and the property.
What kind of property qualifies?
The concession applies to off-the-plan purchases of dwellings, including apartments, units and townhouses, that are within a strata subdivision with common property. Common property means shared areas such as a driveway or a hallway.
Two points are worth highlighting:
- A house-and-land package that is not part of a strata subdivision with common property does not qualify.
- Vacant land does not qualify.
If you are unsure whether a particular development meets the strata and common property requirement, that is exactly the kind of thing to confirm before you sign.
How the concession is calculated
The mechanism is a deduction from the dutiable value. Only construction or refurbishment costs incurred on or after your contract date are deducted. Work already completed before you sign generally does not attract the same benefit, which is why the timing of your contract matters.
Here is a simple illustration of the principle. The numbers below are for explanation only and are not a duty assessment.
Imagine you sign a contract to buy an off-the-plan apartment for 700,000 dollars, and the vendor advises that 450,000 dollars of construction will be carried out after your contract date. The dutiable value is reduced by that construction amount, so duty is calculated on 250,000 dollars rather than on the full 700,000 dollars. Duty is then worked out on the reduced figure at the general rates. The earlier in the build you sign, the more construction cost typically remains to be deducted.
Foreign purchaser additional duty is treated differently
If foreign purchaser additional duty applies to you, note that the off-the-plan concession does not reduce it. That surcharge is calculated on the dutiable value of the property before the off-the-plan concession is applied. The concession applies to the general land transfer duty only.
How the concession is claimed
You do not usually lodge the concession yourself. It is claimed as part of the duty transaction through Duties Online, generally by your conveyancer, solicitor or their representative. Your vendor supplies the construction cost and progress information that feeds the calculation.
This is one of the practical reasons to have a licensed conveyancer involved early. The construction cost figures and the timing all need to be captured correctly for the concession to be applied as intended.
What this means if you are buying off the plan right now
A few takeaways to carry into your decision:
- The window is open but time-limited. Eligible contracts must be signed before 21 April 2027.
- Signing earlier in a build generally leaves more construction cost to deduct, which can improve the duty outcome. That has to be weighed against the ordinary considerations of buying off the plan, such as a longer wait to settlement and buying before the finished product exists.
- Off-the-plan contracts have features that standard contracts do not, including sunset clauses, deposit arrangements and change-of-plan provisions. A careful contract review before you sign protects you on far more than duty alone.
Talk to us before you sign
At All Hours Conveyancing, we have guided Victorian buyers through more than 10,000 property transactions over more than 20 years in business. Off-the-plan purchases are one of the areas where getting the detail right early makes the biggest difference, both for your duty position and for your protection under the contract.
Our founder, Shakila Maclean, is a licensed conveyancer and President of the Australian Institute of Conveyancers, Victorian Division, so you can be confident the advice you receive reflects current Victorian practice.
If you are considering an off-the-plan apartment or townhouse, contact us for a review of your contract and a clear services and fee guide before you commit.
Frequently Asked Questions
When does the extended off-the-plan concession end? The temporary concession applies to contracts entered into before 21 April 2027. The last day to sign an eligible contract is 20 April 2027. Your settlement date does not affect eligibility.
Who can use the temporary off-the-plan concession? It is available to all off-the-plan purchases of eligible residential property, including owner-occupiers, investors, companies and trusts, with no property-value threshold. The separate owner-occupier and first-home-buyer off-the-plan concession also continues to apply.
Does it apply to house-and-land packages? No. The concession applies to apartments, units and townhouses within a strata subdivision that has common property. A house-and-land package that is not part of such a subdivision does not qualify, and vacant land does not qualify.
Can a first home buyer use this as well as first home buyer duty relief? First home buyers may be able to benefit from more than one form of duty relief, depending on their circumstances and the property. It is best to have your eligibility checked so the concessions are applied correctly.
Does the concession reduce foreign purchaser additional duty? No. Foreign purchaser additional duty is calculated on the dutiable value before the off-the-plan concession is applied. The concession reduces general land transfer duty only.
How do I claim the concession? It is claimed as part of the duty transaction through Duties Online, usually by your conveyancer or solicitor, using construction cost information supplied by the vendor.
