In a move aimed at boosting housing supply and affordability, the Victorian Government has extended its temporary off-the-plan stamp duty concession for another 12 months, now available until 20 October 2026. This reform is part of a broader strategy to encourage investment in medium-density housing such as apartments, units, and townhouses.
What is the Off-the-Plan Concession?
The off-the-plan concession allows buyers to reduce the dutiable value of a property by deducting construction costs incurred after the contract date. This can significantly lower the amount of land transfer duty (commonly known as stamp duty) payable at settlement. Previously, this concession was limited to owner-occupiers and first home buyers, but the 2024 expansion opened it up to all purchasers, including investors, companies, and trusts.
Key Features of the 2025 Reform
Eligibility Period
Contracts must be signed between 21 October 2024 and 20 October 2025.
Property Type
Applies to dwellings in strata subdivisions with common property (e.g. shared driveways); does not apply to house-and-land packages with no common property.
No Price Cap
The concession is available for properties of any value.
No Residency Requirement
Buyers do not need to live in the property or be first home buyers.
Foreign Purchasers
The concession does not apply to the Foreign Purchaser Additional Duty (FPAD).
Why This Is Good News for Property Developers?
The reform isn’t just a win for buyers—it’s a strategic advantage for developers too. Here’s how:
Increased Buyer Demand
Lower stamp duty makes off-the-plan properties more attractive, especially to investors. This drives faster pre-sales, which are critical for project viability and helps developers meet financing thresholds earlier.
Improved Access to Capital
With more buyers committing early developers can secure construction loans sooner and projects can commence or progress faster, reducing holding costs.
Broader Market Appeal
The removal of owner-occupier restrictions means developers can market to a wider audience, including investors and SMSFs and this diversifies the buyer pool, reducing reliance on a single segment.
Support for Medium-Density Projects
The concession applies to strata-titled dwellings, encouraging urban infill and higher-density developments and this aligns more broadly with government housing targets and planning priorities.
Reduced Settlement Risk
Lower upfront costs reduce the chance of buyers defaulting before settlement, which minimises legal disputes and financial losses and improves project completion certainty.
Whether you're a first-time buyer, seasoned investor, or property developer, the off-the-plan stamp duty concession offers significant financial and strategic benefits. For developers, it’s a powerful tool to accelerate sales, unlock funding, and deliver projects faster—all while contributing to Victoria’s housing supply goals.
If you're a developer or buyer navigating these changes, we’d be happy to help you understand how they apply to your next project or purchase.
Feel free to contact Kristy Muhlhan, Director on +61 3 9822 8588 or by email at kristy.muhlhan@burkelawyers.com.au
