Stamp duty on off-the-plan townhouses in Victoria
Victoria has the most generous off-the-plan stamp duty rules in the country right now, and townhouses in strata projects qualify. If you sign before construction starts, the saving can run to tens of thousands of dollars. Here’s how it works, in plain language.
The temporary off-the-plan concession
Normally, stamp duty is charged on the full contract price. Under the temporary concession, the construction costs incurred on or after the day you sign are deducted first, and duty is charged on what’s left. Sign before any work starts and the whole build cost comes off; sign halfway through and half of it does.
The rules, as published by the State Revenue Office:
- Who: any purchaser, including investors, companies and trusts. You don’t need to be a first home buyer or live in the home.
- What: off-the-plan dwellings, including townhouses, that are lots in a strata subdivision with common property. House-and-land packages outside a strata subdivision are excluded.
- When: contracts entered into on or after 21 October 2024 and before 21 April 2027. Settlement can be later.
- Price cap: none.
Foreign purchaser additional duty isn’t reduced by the concession. It’s worked out on the price before the deduction.
A worked example
The State Revenue Office’s own example: a buyer signs a contract for a $1.2 million off-the-plan townhouse when construction is 50% complete, and the vendor advises that construction costs are $500,000. Half of those costs — $250,000 — can be deducted, so duty is calculated on $950,000 instead of $1.2 million. Sign the same contract before work starts and the full $500,000 comes off.
The developer provides the construction cost and the percentage complete. Your conveyancer claims the concession through the State Revenue Office’s Digital Duties Form.
If you’re a first home buyer
The off-the-plan deduction is applied first, and the first home buyer exemption or concession is then assessed on the reduced value:
- Dutiable value up to $600,000: no duty.
- $600,001 to $750,000: a reduced amount of duty.
So an off-the-plan townhouse with a contract price above $750,000 can still come in under the threshold once construction costs are deducted. To qualify, at least one buyer must live in the home for 12 continuous months, starting within 12 months of settlement, and nobody on the contract can have owned and lived in a home in Australia before.
First home buyers of a new home valued up to $750,000 may also get the $10,000 First Home Owner Grant.
The ongoing concession
Before the temporary concession, Victoria already had an off-the-plan concession for owner-occupiers (dutiable value up to $550,000 after the deduction) and first home buyers (up to $750,000). That one continues, so if the temporary concession ends and isn’t extended again, eligible owner-occupiers still have something to fall back on.
What to check before you sign
- Confirm the project is a strata subdivision with common property. Ask the developer and have your conveyancer check the plan of subdivision.
- Ask what percentage of construction is complete on the day you sign. Earlier is better for the concession.
- Get the deposit, sunset date and inclusions checked. Our guide to buying off the plan covers the rest.
- Ask for the owners corporation budget. The strata structure that makes the concession possible also means levies. See body corporate fees.
Checked October 2026 against the State Revenue Office Victoria pages on the strata apartments and townhouses temporary concession, the first home buyer duty exemption or concession and the First Home Owner Grant. Rules change; confirm them with the SRO or your conveyancer before you rely on them.
Common questions
- Does the Victorian off-the-plan concession apply to townhouses?
- Yes, as long as the townhouse is a lot in a strata subdivision with common property, such as a shared driveway. A house-and-land package that isn’t in a strata subdivision doesn’t qualify.
- Do I have to be a first home buyer or live in the home?
- No. The temporary concession is open to any buyer, including investors, companies and trusts. First home buyers and owner-occupiers can also use the separate ongoing concession, which has value thresholds.
- When does the temporary concession end?
- It applies to contracts signed on or after 21 October 2024 and before 21 April 2027. The settlement date doesn’t matter, only the contract date.
- Is there a price cap?
- No. The temporary concession has no value threshold, so it applies to townhouses of any price.
This is general information, not financial or legal advice. Get advice that suits your situation before you buy.