For anyone considering buying an off-the-plan apartment, townhouse or unit in Victoria this year, the clock is ticking on one of the most generous stamp duty concessions the state has ever offered.
Between now and October 20, 2025, the Victorian Government is offering a temporary concession that could save buyers tens of thousands of dollars in stamp duty. Whether you’re a first home buyer, a seasoned investor or simply looking to upgrade, it’s a limited-time opportunity worth understanding.
At Tick Box Conveyancing, we help buyers navigate the fine print with confidence. Here’s what you need to know about the current off-the-plan stamp duty concession and how we can help you make the most of it.
What is the Off-the-Plan Stamp Duty Concession?
Stamp duty, officially known as land transfer duty in Victoria, is a tax levied on property purchases. For off-the-plan properties, the duty is typically calculated on the full contract price. However, a unique concession available until 20 October 2025 allows eligible buyers to deduct the construction costs not yet incurred at the time of signing the contract.
This concession was introduced under the Duties Amendment (More Homes) Act 2024 and applies to all buyers—not just first home buyers or owner-occupiers—regardless of the property’s value. It means apartments, townhouses and units within strata subdivisions are now more accessible to a broader range of buyers.
How Does It Work?
The key benefit of this concession lies in how the dutiable value is calculated. Buyers can deduct post-contract construction costs from the total contract price, significantly reducing the duty payable.
For example:
- Contract price: $1,000,000
- Construction cost still to be incurred after signing: $400,000
- Dutiable value: $600,000
- Stamp duty (based on current rates): approx. $31,070
- Without concession: approx. $55,000
That’s a potential saving of nearly $24,000.
Even if the property is partially built, the remaining construction costs can be deducted. For instance, if the project is 50% complete, half of the total construction cost can still be excluded from the dutiable value.
Who Can Access the Concession?
This concession is available to:
- First home buyers
- Owner-occupiers
- Investors
There are no price caps, no restrictions on intended use, and no residency requirements. The key eligibility criteria are:
- The contract must be signed between 21 October 2024 and 20 October 2025
- The property must be an off-the-plan apartment, townhouse or unit within a strata subdivision that includes common property (such as hallways or driveways)
House and land packages or stand-alone dwellings that are not part of a strata plan are not eligible.
Additional Considerations for Foreign Buyers
While the concession significantly reduces general stamp duty, it does not apply to the Foreign Purchaser Additional Duty (FPAD), which remains at 8% of the full contract value. This can result in significantly higher costs for international buyers.
How Does This Differ from Other Concessions?
The pre-existing off-the-plan concession is still available but is far more restrictive:
- Only available to owner-occupiers and first home buyers
- Subject to property value caps ($550,000 or $750,000 depending on the buyer category)
- Requires the buyer to live in the property for 12 months post-settlement
In contrast, the temporary concession is broader, simpler, and potentially more financially beneficial.
How Tick Box Conveyancing Supports You
Navigating stamp duty rules can be complex, particularly when construction timelines and contract terms are involved. At Tick Box Conveyancing, we work closely with buyers and developers to:
- Confirm eligibility for the concession
- Accurately assess construction completion percentages
- Ensure all documentation and declarations are completed and submitted through the State Revenue Office (SRO)
- Liaise with your bank or mortgage broker to make sure funds are available for duty payments at settlement
We use the SRO’s Digital Duties Form and calculator to determine the appropriate concession and confirm your expected duty obligations. We also advise on how the timing of your contract signing may impact your eligibility or potential savings.
Timing Is Everything
The concession is only available for contracts signed on or after 21 October 2024 and before 20 October 2025. Buyers hoping to maximise the benefit need to act before this deadline.
We encourage all buyers, especially those looking at new developments or apartments nearing completion, to move quickly. The later you purchase in the construction cycle, the less of the build remains to be deducted—and the smaller your potential savings.
Budgeting and Finance Implications
While stamp duty is usually paid at settlement (often electronically via PEXA), it’s important to have these funds available in advance. We help clients ensure duty payments are factored into their financial planning to avoid last-minute surprises.
If you’re a foreign buyer, be aware that the FPAD applies on the full contract price, not the reduced dutiable value—a key detail that can affect your borrowing needs.
Make Informed Decisions with Tick Box Conveyancing
With over eight decades of combined conveyancing experience, Tick Box Conveyancing provides expert, plain-English advice to guide you through every step of your property transaction. We make complex calculations feel simple, and ensure you understand the benefits you’re entitled to under current laws.
Our experienced team is here to help you:
- Understand if your property qualifies
- Navigate eligibility and compliance
- Maximise your savings and avoid delays
Thinking of buying off-the-plan? Contact Tick Box Conveyancing today to make the most of this rare opportunity.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal or financial advice. Please consult Tick Box Conveyancing or other qualified professionals to determine your eligibility and the stamp duty payable on your property purchase.
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