Victoria Extends Off-the-Plan Stamp Duty Discount
The Victorian government has announced an extension to the off-the-plan stamp duty concession, aiming to fast-track housing projects and make homeownership more accessible for first home buyers and owner-occupiers.
What’s Changing?
Currently, first home buyers and owner-occupiers can deduct construction costs from the sale price to reduce stamp duty, but only if the property value is under $750,000 for first home buyers and $550,000 for owner-occupiers. These thresholds will be removed under the new plan.
From October 21, 2024, for 12 months, eligible buyers will be able to deduct 100% of outstanding construction and refurbishment costs, significantly lowering their upfront expenses.
For example, under this scheme, a $620,000 apartment would attract just $4,000 in stamp duty, compared to $32,000 if purchased before construction begins.
This concession applies to strata-titled apartments and townhouses, but not house and land packages. However, first home buyers and owner-occupiers can still access existing stamp duty concessions beyond October 2025.
Why Is This Happening?
The state government has cited industry feedback indicating that high interest rates have slowed sales and stalled developments. By reducing upfront costs for buyers, developers are expected to secure pre-sales faster, meet finance requirements sooner, and bring more housing projects to market.
This initiative is intended to:
- Improve housing affordability for first home buyers and owner-occupiers.
- Stimulate new construction and boost housing supply.
- Support the property development and construction industries.
- Increase rental availability by accelerating new builds.
Victorian Premier Jacinta Allan emphasized that this measure directly responds to industry concerns. “We asked industry what they need to build more homes sooner—and this is what they said,” she stated.
