Victoria's off-the-plan stamp duty concession: who qualifies until April 2027
How Victoria's temporary off-the-plan duty concession works for apartments, units and townhouses, its extension to 20 April 2027, eligibility and a worked saving.
Victoria's temporary off-the-plan duty concession lets any buyer of an off-the-plan apartment, unit or townhouse in a strata subdivision deduct 100% of the construction and refurbishment costs still to be done from the price when land transfer duty is calculated. There is no value cap, and investors and owner-occupiers qualify as well as first home buyers. It applies to contracts entered into from 21 October 2024. It was first set to end on 20 October 2025, then extended to 20 October 2026, and the Building Legislation and Treasury Legislation (Tax Relief) Amendment Act 2026, which received Royal Assent on 23 June 2026, extended it again to contracts entered into on or before 20 April 2027. The earlier, permanent off-the-plan concession for owner-occupiers and first home buyers with value caps continues alongside it.
This guide is part of the cost of selling a house in Australia section. For first home buyer thresholds in Victoria and other states, see first home buyer concessions by state.
The two Victorian off-the-plan concessions
| Temporary concession (extended) | Ongoing off-the-plan concession | |
|---|---|---|
| Who | Any purchaser, including investors and companies | First home buyers, eligible pensioners and owner-occupiers (principal place of residence) |
| Property | Apartments, units and townhouses on a lot in a strata subdivision that creates common property | Also house-and-land packages and other off-the-plan homes |
| Value cap | None | Dutiable value after the deduction must be under $750,000 for first home buyers, or under $550,000 for owner-occupiers and pensioners |
| Deduction | 100% of construction and refurbishment costs incurred on or after the contract date | Construction costs incurred after the contract date |
| Contract dates | 21 October 2024 to 20 April 2027 | Ongoing |
Source: State Revenue Office Victoria and the Victorian Government's off-the-plan concession page, as at October 2026.
How the saving is calculated
Duty is charged on the dutiable value, normally the price. Under the concession, the dutiable value is reduced by the share of the price that pays for construction still to be done after you sign. The developer, usually through the vendor statement and a declaration, sets out the value of the land and any work completed at the contract date.
The earlier you sign, the larger the deduction. Buying before construction starts gives the biggest saving; buying a completed apartment gives none.
Worked example
An illustrative $620,000 apartment bought off the plan before construction starts. The developer's figures put the land and completed works at $70,000 at the contract date; the remaining $550,000 is construction still to be done.
| Step | Amount |
|---|---|
| Contract price | $620,000 |
| Less: construction and refurbishment costs after the contract date | $550,000 |
| Dutiable value | $70,000 |
| Duty: $350 + 2.4% x ($70,000 - $25,000) | $1,430 |
| Duty without the concession: $2,870 + 6% x ($620,000 - $130,000) | $32,270 |
| Saving | $30,840 |
The Victorian Government gives a similar example of a $620,000 apartment where duty falls from about $32,000 to about $4,000. The actual figure depends on how much land value and completed work the developer attributes at the contract date.
Now take the same apartment bought halfway through construction, when the land and completed works are worth $340,000:
- Dutiable value = $340,000
- Duty = $2,870 + 6% x $210,000 = $15,470
- Saving = $32,270 - $15,470 = $16,800
Points to check before relying on the concession
- Strata with common property. The temporary concession applies only to a lot in a subdivision that creates common property, such as a shared driveway, foyer or hallway. A freestanding townhouse on its own title without common property does not qualify.
- Contract date. Contracts signed after 20 April 2027 are outside the extended concession unless it is extended again. A nomination or assignment of the contract can change the relevant date; ask your lawyer.
- Developer documentation. The SRO relies on the developer's declaration of costs. Ask early whether the developer will supply it.
- Foreign purchasers. The foreign purchaser additional duty of 8% is charged separately. Check with the SRO how the concession interacts with it for your purchase, and whether you need FIRB approval: see foreign buyer surcharges.
- First home buyers can combine the deduction with the first home buyer exemption or concession, which then applies to the reduced dutiable value.
Risks that matter more than the duty saving
Off-the-plan purchases carry risks that can outweigh a duty saving:
- The valuation at completion may be below the contract price, leaving a shortfall your lender will not cover.
- Construction delays can push settlement back, and sunset clauses in the contract can let the developer rescind.
- Finishes may differ from the display suite.
- Off-the-plan contracts in Victoria have specific deposit and disclosure rules under the Sale of Land Act 1962; have a lawyer review the contract before signing.
Frequently asked questions
Does the concession apply to house-and-land packages?
Not the temporary concession, which is limited to strata apartments, units and townhouses with common property. House-and-land packages may qualify for the ongoing off-the-plan concession if you are a first home buyer or owner-occupier within the caps.
Is the concession automatic?
No. It is claimed when the transfer is lodged, using the developer's information on construction costs. Your conveyancer handles the claim.
Will it be extended again?
That depends on the Victorian Government. Each extension so far has been announced in advance and legislated. Check the SRO before signing if your contract date is close to 20 April 2027.
Can investors use it?
Yes. Unlike the ongoing concession, the temporary concession is open to investors, with no owner-occupation requirement and no value cap.
Official sources
- State Revenue Office Victoria — off-the-plan duty concession, eligibility and calculator
- Victorian Government — announcements on the off-the-plan concession
- Consumer Affairs Victoria — buying off the plan and Sale of Land Act protections
