What is the off-the-plan stamp duty concession and what saving does that provide?

It is a discount on stamp duty that reduces the amount that you need to contribute to the purchase. When you buy off the plan, part of what you pay is for construction that has not happened yet at the contract date. The concession lets you subtract those post-contract construction costs from the price to arrive at a smaller "dutiable value", and duty is then charged only on that reduced figure (State Revenue Office Victoria, 2026).

In practice, that means the earlier in the build you sign, the more construction remains to be excluded — and the bigger the saving. A contract signed on a bare site, before any works have started, can strip a large chunk out of the dutiable value. Sign near completion and there is far less to exclude. The concession applies only to the first sale after the plan of subdivision is registered, so it is about buying a brand-new dwelling, not a resale.

Can investors, companies and trusts use it in 2026?

Yes — and this is the key change most people miss. The temporary concession is available to all purchasers, with no requirement to live in the property, so investors, companies and trusts can all use it (State Revenue Office Victoria, 2026). That is a deliberate widening of the older permanent concession, which was limited to buyers using the home as their principal place of residence.

There is also no price ceiling on the temporary concession — the property can be of any value. In our experience that makes it especially powerful for investors buying inner-Melbourne apartments and for buyers looking at higher-value townhouses that would normally attract a hefty duty bill. If you are weighing up an investment purchase, it is worth modelling the after-tax numbers properly; our team walks through this as part of our property advisory service.

When does the temporary concession end?

It runs until 21 April 2027, applying to contracts signed on or before 20 April 2027.

The trap we see most often is treating that date as a settlement deadline. It is not — it is the contract date that matters. As long as your contract is signed on or before 20 April 2027, settlement can occur later (many off-the-plan builds settle a year or more after signing). If you sign after the window closes, only the older, narrower rules would apply unless the scheme is extended again.

Which properties qualify — and which miss out?

The temporary concession applies to apartments and townhouses in a strata subdivision with common property — think shared driveways, reception, lifts, gardens or a body corporate (owners corporation) arrangement (State Revenue Office Victoria, 2026). What does not qualify is just as important:

Because the line between a qualifying townhouse and a non-qualifying house-and-land package comes down to the plan of subdivision and whether there is common property, we always suggest confirming the structure with the developer's contract and your conveyancer before you rely on the saving.

How much could you actually save?

The saving depends on how much of the price is post-contract construction. As an illustration only: suppose you buy an apartment for $650,000 off the plan, and at the contract date 60% of the value still relates to construction to be completed. The dutiable value drops to roughly $260,000, and duty is charged on that lower figure rather than the full $650,000 — a difference that can run into the tens of thousands. Your actual saving will vary with the developer's construction-cost breakdown and the stage at which you sign, so treat any headline number as indicative until the figures are confirmed.

For first home buyers there is a second layer worth understanding. The off-the-plan concession is applied first to work out the dutiable value. If that reduced value lands at or below $600,000, the first home buyer duty exemption can wipe duty out entirely; between $600,001 and $750,000 a sliding-scale concession applies (State Revenue Office Victoria, 2026). Getting a build to slip under those thresholds via the off-the-plan reduction is where careful timing pays off. Modelling the full purchase — deposit, borrowing capacity and duty together — is exactly what we do when structuring a home or investment loan.

What should you do before you sign?

Get the numbers modelled early. Ask the developer for the construction-cost apportionment, confirm the strata and common-property status with your conveyancer, and line up your finance so your contract can be signed inside the window. Because off-the-plan builds settle well into the future, your borrowing capacity and lender choice matter as much as the duty saving — a valuation or serviceability surprise at settlement can undo the whole plan.

If you are looking at an off-the-plan apartment or townhouse in Melbourne and want to know what it means for your duty, deposit and loan structure, book a 30-minute strategy call with our team below. We will run the numbers with you and flag anything that could catch you out before you commit.

Frequently asked questions

Does the off-the-plan concession apply to house-and-land packages?

Generally no. The temporary concession applies to apartments and townhouses in a strata subdivision that has common property. A standard house-and-land package on its own title, without common property, does not qualify (State Revenue Office Victoria, 2026).

Can I use the concession if I buy an off-the-plan apartment through a company or trust?

Yes. The temporary concession is available to all purchasers, including investors, companies and trusts, and there is no requirement to live in the property (State Revenue Office Victoria, 2026).

When does the temporary off-the-plan concession end?

It has been extended to 21 April 2027 and applies to contracts signed on or before 20 April 2027 (State Revenue Office Victoria, July 2026). Buy after that date and only the older, narrower rules would apply unless the scheme is extended again.

Can first home buyers combine this with the first home buyer duty exemption?

Potentially. The off-the-plan concession is applied first to work out the dutiable value; if the reduced dutiable value falls at or below $600,000 the first home buyer full exemption can apply, with a partial concession between $600,001 and $750,000 (State Revenue Office Victoria, 2026).