On 21 October 2024, the Victorian Government introduced a new initiative under the Duties Amendment (More Homes) Act 2024 (enacted on 19 November 2024), offering a temporary off-the-plan land transfer (stamp) duty concession. This measure provides significant financial relief to a broader range of property purchasers entering into off-the-plan contracts.
Who Can Benefit?
Unlike the existing off-the-plan concessions—which are limited to first home buyers and owner-occupiers—this temporary concession is available to all purchasers, including:
- Investors
- Companies
- Trusts
There is no requirement to meet first home buyer exemption criteria or to occupy the property as a principal place of residence.
Eligibility Criteria
To qualify, purchasers must:
- Sign an off-the-plan contract for a dwelling within a strata subdivision that includes common property (such as shared driveways, gardens, or amenities); and
- Sign the contract between 21 October 2024 and 21 October 2025.
Important:
Eligibility is based on the contract date, not the settlement date.
Exclusion:
House and land packages that do not involve strata common property are not eligible for this concession.
How Does the Concession Work?
Eligible purchasers can deduct construction costs incurred after the contract date from the total contract price when calculating stamp duty. This reduces the dutiable value and can result in significant savings.
Example:
- Contract Price: $1,000,000
- Construction Costs Incurred After Contract Date: $400,000
- Dutiable Value: $600,000
If construction was already partially completed at the time of signing, only a proportion of the future construction costs is deductible. For instance, if the property was 50% built at the time of the contract, then only 50% of future construction costs can be deducted.
No Value Threshold
There is no cap on the property value. Whether purchasing a $500,000 apartment or a $2 million townhouse, the concession applies provided the eligibility conditions are met.
How to Apply
Applications are processed through the State Revenue Office’s digital duties platform as follows:
- The purchaser’s solicitor or conveyancer prepares the Digital Duties Form via Duties Online.
- The vendor or their agent provides construction progress information.
- The solicitor or conveyancer completes the application and applies the concession.
Key Reminders
- Contracts signed before 21 October 2024 are not eligible, even if settlement occurs during the concession period.
- Contracts signed between 21 October 2024 and 21 October 2025 remain eligible, even if settlement occurs after the concession period ends.
Conclusion
This temporary off-the-plan concession makes it easier for a wider range of purchasers—including investors and companies—to access the property market with reduced upfront costs. It presents a valuable opportunity, particularly for off-the-plan dwellings within strata developments.
Purchasers are encouraged to seek professional legal and financial advice to determine how best to take advantage of this limited-time offer.
For further details, visit the State Revenue Office Victoria website.
