Victorian Government significantly expands off-the-plan duty concession for limited time

Victorian Government significantly expands off-the-plan duty concession for limited time

A new off-the-plan concession will be available for contracts entered into from 21 October 2024, running for 12 months. This concession applies to all off-the-plan strata purchases, allowing buyers to deduct construction costs incurred after the contract date from the property’s dutiable value, reducing the stamp duty payable.

Concessions available to all buyers – including investors and foreign purchasers

The concession is open to all buyers, including investors, foreign purchasers, companies, and trusts, without the need to meet eligibility for the principal place of residence or first home buyer concessions.

Existing concessions for owner-occupiers and first home buyers will continue alongside this new scheme.

The concession does not apply to house-and-land packages or to foreign purchaser additional duty (FPAD), which is calculated based on the full dutiable value before any deduction.

The new concession is expected to be legislated shortly and will be applied to contracts that were entered into on or after 21 October 2024. We will keep you updated in this regard.