SKY UPDATE | VICTORIA’S NEW OFF-THE-PLAN DUTY CONCESSION

05 December 2024

The Victorian Government has introduced a new Off-the-Plan Concession aimed at boosting investment in the construction of apartments and townhouses.

With the enabling legislation (Duties Amendment (More Homes) Bill 2024) having received Royal Assent on 19 November 2024, the concession is now available.

The concession is available for:

Off-the-plan dwellings, including apartments and townhouses, located within strata subdivisions that include common property.
Both owner-occupiers and investors are eligible.
Unlike many property-related incentives, there is no price threshold, making it accessible to a broad range of buyers.
Contracts entered on or after 21 October 2024 and before 21 October 2025.

Under the concession, the cost of construction completed after the contract date is excluded from the calculation of transfer duty (stamp duty). This can significantly reduce the duty payable and therefore the upfront costs associated with purchasing off-the-plan.

The Off-the-Plan Concession is a compelling incentive for anyone considering investing in an off-the-plan development.

Whilst the duty savings can be significant, it is still important to do due diligence on the developer and also to consider the longer-term prospects of the property and the Victorian property market more generally.

If you’re considering taking advantage of this concession, make sure to act within the eligibility period and consult with a lawyer/conveyancer to ensure you meet all the requirements.

In the meantime, reach out if you would like to learn more about the new concession.