Victoria Extends Off-the-Plan Stamp Duty Concession to 2027

TL;DR: The Victorian Government has extended its off-the-plan stamp duty concession until April 21, 2027, providing significant stamp duty savings for eligible buyers of new residential properties, including investors and owner-occupiers. This move aims to boost housing supply and affordability in Victoria.

Key Takeaways

• The Victorian stamp duty concession for off-the-plan purchases is extended to April 21, 2027.
• It applies to new apartments, units, and townhouses with a dutiable value of up to $1 million.
• Both owner-occupiers and investors are eligible, regardless of whether it’s their first home, as long as other criteria are met.
• Savings can be substantial, calculated on the dutiable value after construction, not the purchase price, potentially reducing stamp duty by tens of thousands of dollars.
• The extension helps reduce upfront costs, potentially improving your Loan to Value Ratio (LVR) and borrowing capacity for a construction loan.
• You can easily calculate your potential stamp duty savings using RooLoans’ dedicated Stamp Duty Calculator.

The Victorian Government has extended its off-the-plan stamp duty concession, moving the expiry date from July 1, 2023, to April 21, 2027. This important policy change offers financial relief for people and investors buying a new apartment, unit, or townhouse in Victoria. It aims to boost construction and improve housing affordability, according to a May 2026 update from the Victorian State Revenue Office.

This extension gives prospective buyers a chance to reduce upfront costs when purchasing newly built or soon-to-be-built residential property. If you’re considering a construction loan or buying a brand-new home, understanding this concession is important for your budgeting and financial planning.

What is the Victorian Off-the-Plan Stamp Duty Concession?

The Victorian off-the-plan stamp duty concession means eligible buyers of new residential properties pay stamp duty only on the “dutiable value” of the property at the contract date, rather than the final completed value. Off-the-plan refers to buying a property, such as an apartment or townhouse, before it has been built or before construction is complete. Stamp duty, also known as land transfer duty, is a tax imposed by state governments on the transfer of land and other dutiable property.

The concession reduces the stamp duty you pay by deducting the value of construction work carried out after the contract date from the final purchase price. This means you’re taxed on the lower value of the land and any existing improvements when you sign the contract, which means significant savings.

How Does the Concession Save You Money?

The Victorian off-the-plan stamp duty concession reduces your taxable value by excluding the cost of construction after your contract date. This saves you money compared to paying duty on the property’s full market value once completed. How much you save depends on the purchase price, the construction stage when you sign, and the overall dutiable value, which must be $1 million or less.

For example, if you buy an off-the-plan apartment for $750,000, and $150,000 worth of construction is yet to be completed when you sign the contract, your stamp duty will be calculated on $600,000 instead of the full $750,000. That can save you tens of thousands of dollars. To illustrate:

Note: These are estimates based on standard Victorian stamp duty rates for 2026 and do not include other potential exemptions or surcharges. Always verify with the State Revenue Office Victoria or a conveyancer.

You can quickly determine your potential stamp duty obligations and savings with RooLoans’ Stamp Duty Calculator. It calculates instantly for all Australian states and territories, factoring in available concessions.

Who is Eligible for the Extended Concession?

The Victorian off-the-plan stamp duty extension has broad eligibility criteria. The concession is available to buyers of new residential properties – apartments, units, and townhouses – with a dutiable value of up to $1 million. It’s open to both owner-occupiers and investors, and doesn’t necessarily have to be your first home.

To be eligible, the contract must be for a new residential property. This includes properties still under construction, as long as the contract is signed before construction finishes and before the April 21, 2027 deadline. For full details on specific conditions, always consult the State Revenue Office Victoria.

What Are the Financial Benefits for Homebuilders and Investors?

The extended Victorian stamp duty concession offers financial advantages for both owner-occupiers and investors. For owner-occupiers, this means lower upfront costs, making property ownership more accessible and easing the initial financial burden. This can free up capital for other expenses like moving or furnishing a new home.

Investors also benefit from reduced entry costs, making new property developments more attractive. A lower stamp duty bill means a better return on investment over time. For both groups, a lower upfront stamp duty payment can also improve their Loan to Value Ratio (LVR), which is the ratio of your loan amount to the property’s valuation. A lower LVR can reduce Lenders Mortgage Insurance (LMI) costs.

You can estimate potential LMI costs using RooLoans’ LMI Calculator to factor this into your budget. This saving is important when managing overall project costs, including interest during the construction phase. Use RooLoans’ Interest During Build Calculator to estimate your real borrowing cost during the construction phase with progress drawdown modelling.

How Does This Impact Your Construction Loan?

The extension of the off-the-plan stamp duty extension Victoria can impact your construction loan application and overall financing strategy. By reducing the total amount you need for upfront costs, the concession can improve your borrowing capacity and lower the loan amount required. This might mean a better chance of loan approval or access to more competitive interest rates from lenders.

A lower upfront stamp duty requirement can also affect your deposit strategy. If you save money on stamp duty, you might put a larger cash deposit towards your property, improving your LVR even more and reducing your LMI. Construction loans typically involve a progress drawdown system, where funds are released in stages as construction progresses.

A healthier initial financial position, boosted by stamp duty savings, gives you a stronger foundation for managing these payments. With RooLoans, you can compare construction loan rates and features from 30+ Australian lenders side-by-side. This helps you find a loan that aligns with these savings. We can also connect you with construction loan specialist brokers in your area at no cost, offering expert guidance for your situation.

Frequently Asked Questions

What does “off-the-plan” mean for stamp duty?

“Off-the-plan” means buying a residential property, such as an apartment or townhouse, before construction is complete. The concession allows stamp duty to be calculated on the value of the property at the contract date, rather than its higher value upon completion.

Is the Victorian off-the-plan stamp duty concession only for first home buyers?

No, the Victorian off-the-plan stamp duty concession is available to both owner-occupiers and investors, regardless of whether it’s their first home. The key criteria are that it’s a new residential property and meets the $1 million dutiable value cap.

How long has the off-the-plan stamp duty concession been extended for?

The Victorian off-the-plan stamp duty concession has been extended until April 21, 2027. So, contracts signed for eligible properties up to this date can take advantage of the savings.

Can I combine this concession with other grants, like the First Home Owner Grant (FHOG)?

Yes, if you are a first home buyer and meet the eligibility criteria for both, you may be able to combine the off-the-plan stamp duty concession with other grants like the Victorian First Home Owner Grant (FHOG). Always check specific conditions for each grant with the State Revenue Office Victoria.

What types of properties are eligible for this concession?

The concession applies to new residential properties, specifically new apartments, units, and townhouses. It aims to encourage the purchase of newly built homes and stimulate the construction sector.

Take Advantage of Victorian Stamp Duty Savings

The extension of the Victorian off-the-plan stamp duty concession to April 21, 2027, is a big opportunity for anyone considering buying a new residential property in Victoria. By reducing upfront costs, this measure makes new homes more accessible for owner-occupiers and more attractive for investors.

Understanding these concessions is just one part of the complex world of property finance. RooLoans simplifies the process for Australian homebuilders. You can compare construction loan rates, fees, and features from 30+ Australian lenders side-by-side, calculate your total costs including interest during build, stamp duty, and LMI, and connect with specialist brokers who understand construction finance.

Don’t miss out on potential savings.

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