Buying off the plan in Victoria: can you still save stamp duty?

Yes. Victoria’s extended temporary concession can reduce stamp duty on eligible off-the-plan apartments, units and townhouses. It covers contracts entered into on or after 21 October 2024 and before 21 April 2027. Eligibility depends on the contract date, not the settlement date.

Which properties and buyers qualify?

The property must be a lot in a subdivision with common property, such as a shared driveway, managed by an owners corporation once the plan is registered. A house-and-land package without that common-property arrangement does not qualify for this temporary concession.

Investors, companies and trusts can qualify, as well as owner-occupiers. There is no property-value cap, and you do not have to be a first home buyer or live in the property.

How does the saving work?

The concession reduces the property value used to calculate duty by deducting eligible construction costs incurred on or after the contract date.

For example, suppose an eligible apartment costs $900,000 and the allowable construction deduction is $350,000. Duty would be calculated on $550,000, assuming no higher market value applies. The $350,000 is a reduction in the assessment value, not the amount of tax saved.

Buying after construction starts can reduce the deduction because work already completed is not part of the eligible remaining construction. Generally, the further advanced the building, the smaller the potential saving.

The actual saving depends on the eligible costs and any other applicable relief. Ask for a supported estimate rather than relying on an advertised maximum saving.

What should you check before signing?

Confirm the proposed subdivision includes common property and obtain the vendor’s construction information supporting the calculation.

The temporary concession does not reduce foreign purchaser additional duty. Separate first home buyer benefits and the ordinary off-the-plan concession have their own eligibility rules.

Before changing the purchaser or nominating someone else to complete the purchase, check the duty consequences. Additional duty can arise where extra consideration is paid or land development occurs between signing and nomination, subject to applicable exceptions. The replacement buyer’s eligibility also needs checking.

A duty saving also does not remove the risks of delayed completion, changed plans, a lower valuation or difficulty obtaining finance. Review the contract and funding arrangements before committing.

This article provides general information only and is not legal advice. Legal requirements and individual circumstances vary. Obtain advice about your specific situation.