Victoria Opens Off-the-Plan Stamp Duty Concession to All Buyers

The Victorian Government moved to revive the state's struggling apartment and townhouse pipeline on 21 October 2024, announcing a 12-month expansion of its off-the-plan stamp duty concession to every buyer, at any price.

Premier Jacinta Allan made the announcement at a new apartment building in North Fitzroy. The concession took effect the same day.

How the concession works

Under an off-the-plan concession, construction and refurbishment costs still to be completed can be deducted from the purchase price when calculating land transfer duty. The earlier the purchase in the build, the larger the deduction.

Before the change, the concession was limited to first home buyers and owner-occupiers, and only where the reduced dutiable value fell under $750,000 for first home buyers or $550,000 for owner-occupiers. For the 12 months from 21 October 2024, those thresholds were removed and the concession was opened to all buyers, including investors, with a 100 per cent deduction of outstanding construction costs.

The government's worked example was striking: a buyer purchasing a $620,000 apartment off the plan before construction started could pay about $4,000 in stamp duty rather than about $32,000, a saving of roughly $28,000. In general, it said, an off-the-plan buyer would pay about a quarter of the duty they would otherwise owe.

What qualified

Eligibility was limited to apartments, units and townhouses in a strata subdivision, meaning those with common property such as a shared driveway or hallway. House and land packages and other dwellings outside a strata scheme were not covered by the extension, although first home buyers and owner-occupiers could continue to use the existing concession on them.

Why now

The government said the move responded to industry feedback that the interest rate burden had slowed off-the-plan sales and stopped developments from proceeding. By lifting pre-sales, it hoped developers would meet finance requirements sooner and start construction earlier, adding to both the sales and rental supply.

Ms Allan told reporters that builders had asked for a stimulus, citing tough conditions after successive interest rate rises. Treasurer Tim Pallas argued the measure would not necessarily push prices up, suggesting it could stabilise prices by increasing the volume of stock.

The opposition was sceptical. Shadow planning minister James Newbury told ABC Radio Melbourne that supply was too low for a tax cut to make a difference, citing an estimate of 45,000 homes built that year against the government's target of 80,000. The Premier countered with ABS data showing about 60,000 homes completed in Victoria over the previous year.

Part of a wider housing push

The concession was announced a day after the government named 50 new higher-density activity centres around Melbourne's train and tram stations, as part of a week of housing announcements under its More Homes, More Opportunity banner.

It proved durable. In its May 2025 Budget, the government committed $61 million to extend the concession for a further 12 months beyond its original October 2025 expiry, saying buyers who had used it were saving an average of $25,000.