Temporary off the plan stamp duty concession

On 21 October 2024, the Victorian Government announced a new temporary off-the-plan land transfer stamp duty concession.

The existing off-the-plan duty concession is only available to first home buyers and owner-occupiers where the off-the-plan dutiable value is under $750,000 for first home buyers and $550,000 for other buyers. It means that many purchasers where the value exceeds those thresholds or where they are investors, companies or trusts may not be entitled to the concession. The proposed change will temporarily expand the availability of the concession to any purchasers of a property in a strata subdivision and remove value caps.

The new concession will be available from 21 October 2024 for 12 months for off-the-plan purchases of dwellings within strata subdivisions (which means there must be common property in the subdivision such as a shared driveway). Eligibility is based on the date the contract of sale is entered into irrespective of whether settlement occurs before or after the end of the 12 month window.

When the off-the-plan concession applies, stamp duty will be assessed on the contract price minus the construction or refurbishment costs incurred on or after the contract date.

The concession will be available to all purchasers with no requirement for either the principal place of residence duty concession or the first home buyer duty exemption or concession to apply.

Please get in touch with our Property & Development Team if you’d like any pre-contractual advice on your off-the-plan purchase and eligibility for the temporary off-the-plan stamp duty concession.