Know Your Off-the-Plan Duty Concession

Explore how an eligible off-the-plan purchase may reduce the dutiable value used to calculate Victorian land transfer duty.

OFF-THE-PLAN DUTY SAVINGS

How Construction Progress Can Reduce Dutiable Value

The stage of construction when you sign can make an important difference to the property’s dutiable value.

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FAQs

Off-the-Plan Concession FAQs

Buying before construction is complete involves different duty considerations. These answers cover the main concession rules buyers encounter.

What is the Victorian off-the-plan concession?

The concession can reduce the dutiable value of an eligible off-the-plan property by excluding certain construction costs incurred after the contract date. Duty is then calculated using the reduced dutiable value where the requirements are satisfied.

It generally means entering into a contract to purchase property before construction or eligible refurbishment has been completed. The current temporary concession applies specifically to apartments and townhouses within a strata subdivision with common property (such as a shared driveway) — standalone house-and-land packages generally aren’t eligible for this particular concession, though other duty concessions may apply to them. 

Yes. Victoria’s temporary concession currently applies to eligible contracts for qualifying strata apartments and townhouses entered into on or after 21 October 2024 and before 21 April 2027, with no dutiable value threshold, meaning it applies regardless of purchase price, to investors as well as owner-occupiers.

Generally, the greater the eligible construction work remaining after the contract date, the larger the potential reduction in dutiable value. The actual calculation requires construction information supplied for the transaction.

Not necessarily. The concession changes the dutiable value used in the calculation. Whether any duty remains depends on the resulting value and any other exemption or concession for which you qualify.

Applications are generally handled as part of the duty transaction, with information supplied by the vendor and the relevant forms commonly completed and lodged through the purchaser’s conveyancer or solicitor.

Buying a Property Off the Plan?

Get conveyancing guidance on your contract, duty considerations and settlement requirements before your off-the-plan purchase moves ahead.