Could you save thousands of dollars when you next purchase a property?
The new temporary off-the-plan stamp duty concession, launched on 21 October 2024, delivers an impressive amount of savings for buyers purchasing unbuilt properties and has the potential to revolutionise Melbourne’s property market.
With this scheme running until October 2025, understanding the differences between the concession and normal stamp duty may enable you to enjoy some significant savings.
What Is Stamp Duty?
In Victoria, stamp duty, officially known as land transfer duty, is a tax that you pay when you purchase a property. Stamp duty is calculated on the property value, also known as the dutiable value, and can be a large upfront cost.
If you don’t have any concessions, it can increase your purchase costs substantially.
In addition to using a stamp duty calculator to help you estimate the cost of stamp duty, you will also want to consider any concessions you can take advantage of like the off-the-plan stamp duty concession, which will lower your bill.
What Does “Off the Plan” Mean?
Buying “off the plan” means purchasing a property before it’s built or while it’s under construction. You rely on plans, designs, and developer promises rather than inspecting a finished home.
These purchases often qualify for stamp duty relief, especially with the new temporary off-the-plan concession, which targets properties in strata subdivisions with shared spaces, such as apartments or townhouses with communal areas.
Off-the-plan conveyancing ensures contracts and tax calculations are handled correctly.
Key Details Of The Temporary Off-the-Plan Concession
The Victorian Government introduced a new off-the-plan home concession under the Duties Amendment (More Homes) Act 2024.
The intent is to promote financial affordability to exercise an off-the-plan purchase and to support the building industry in the context of a shortage of housing.
Here are the major facts:
| Criteria | Temporary Off-the-Plan Concession |
|---|---|
| Start Date | 21 October 2024 |
| End Date | 21 October 2025 |
| Eligibility Based On | Date of contract signing (not settlement) |
| Applies To | Off-the-plan dwellings in strata subdivisions with common property |
| Includes | Apartments, townhouses, units in strata subdivisions |
| Excludes | House and land packages with no common property |
| Income/Occupancy Restrictions | None – applies to all buyers, including investors |
| Price Limit | No upper limit |
| Other Concessions Affected? | No, existing concessions continue |
Who Can Benefit From This Temporary Concession?
One of the most significant shifts under the temporary off-the-plan concession is the broadening of eligibility.
Previously, concessions were limited and required the purchaser to occupy the property as their principal place of residence or qualify for first-home buyer status.
Now, eligibility includes:
- First home buyers
- Owner-occupiers
- Investors (individuals and organisations)
- Foreign purchasers (note: FPAD still applies)
- Companies and trusts
This makes the concession more widely accessible and eliminates the need for meeting additional occupancy or income tests.
Comparison: Temporary Concession vs. Standard Stamp Duty
The table below outlines the major differences between the temporary concession and standard stamp duty rules:
| Aspect | Standard Stamp Duty | Temporary Off-the-Plan Concession |
|---|---|---|
| Dutiable Value | Full contract price | Deduct construction costs after contract date |
| Eligibility | All buyers (but no automatic reduction) | All buyers (automatic eligibility if criteria met) |
| Common Property Requirement | Not required | Required (must be part of strata with shared areas) |
| Income/Owner-Occupancy Conditions | None | None |
| Applicable Property Types | All residential and commercial properties | Off-the-plan apartments, townhouses, strata units only |
| Duration | Ongoing | 12-month window (21 Oct 2024 – 21 Oct 2025) |
| Use of Stamp Duty Calculator | Straightforward | Requires knowledge of adjusted construction costs |
Eligibility Requirements And Property Types
The temporary off-the-plan concession applies specifically to dwellings in strata subdivisions with common property. Understanding these requirements is crucial for determining eligibility.
Eligible Property Types:
- Apartments in high-rise buildings with shared facilities
- Units with communal gardens or recreational areas
- Townhouses sharing driveways or common spaces
- Any dwelling in strata subdivision arrangements
Ineligible Property Types:
- Standalone houses without shared facilities
- House-and-land packages lacking common property
- Properties outside strata subdivision structures
- Commercial or industrial developments
Contract timing determines eligibility, not settlement dates. Contracts signed between 21 October 2024 and 21 October 2025 qualify, regardless of when settlement occurs.
How To Claim The Off-the-Plan Stamp Duty Concession?
Claiming the concession is straightforward. The vendor submits details via the State Revenue Office’s Digital Duties Form, including construction costs and the chosen calculation method (fixed percentage or alternative).
About six months before settlement, the vendor informs your conveyancer of the adjusted dutiable value.
Your off-the-plan conveyancing team verifies this figure, calculates the final stamp duty, and ensures compliance with Victorian regulations.
Beneficiaries And Expanded Access
The temporary concession dramatically expands access compared to previous off-the-plan benefits.
Traditional concessions were limited to first-home buyers and owner-occupiers, but this scheme removes such restrictions.
New Beneficiary Categories:
- First-home buyers: Additional savings beyond existing concessions
- Owner-occupiers: Upgrading or downsizing opportunities
- Property investors: Investment portfolio expansion benefits
- Companies and trusts: Business entity participation
- Foreign purchasers: Access to general duty reductions
This expansion represents a significant policy shift. Previously, investors and business entities were excluded from off-the-plan benefits.
Now, all purchaser types can access these substantial savings.
Foreign Purchaser Considerations
Foreign buyers should understand that whilst they benefit from the temporary concession for general stamp duty, the Foreign Purchaser Additional Duty (FPAD) remains calculated on the original purchase price. The concession only reduces standard land transfer duty obligations.
Make The Most Of Your Off-the-Plan Purchase—With Expert Help!
Understanding stamp duty concessions can save you thousands, but only if your paperwork is done right. At Eagle Peak Conveyancing, our conveyancers in Melbourne take the confusion out of off-the-plan purchases, from contract review to stamp duty concession checks.
Our fixed-price services, strong ties in the industry and dedicated team will help you claim everything you are entitled to— without the headache. If you already want to take the next step, let us make your off-the-plan experience stress-free!
