In short: Victoria's temporary off-the-plan land transfer duty concession for apartments and townhouses ends on 20 October 2026. It is open to all buyers, including investors and second-home buyers, and it works by taking construction costs incurred after the contract date out of the dutiable value. To use it you need to sign an eligible contract before the deadline, not merely settle by then.
Off-the-plan buying in Melbourne has been unusually attractive over the past couple of years because of this concession. With the end date now weeks away, we are seeing a rush of enquiries from buyers who want to know whether they qualify, how much it is really worth, and whether rushing into a contract makes sense. Here is a plain-language answer to all three.
What the concession actually does
Normally, land transfer duty in Victoria is calculated on the full contract price. The temporary off-the-plan concession lets you deduct the cost of construction that happens after you sign, so duty is charged on the land plus whatever building work already exists at the contract date.
The earlier in the build you sign, the bigger the deduction. Sign on a vacant site and most of the price is deductible. Sign when the building is nearly finished and there is little left to deduct.
Who can use it
| Buyer type | Eligible? |
|---|---|
| First home buyer living in the property | Yes |
| Owner-occupier who has owned before | Yes |
| Investor | Yes |
| Buying a house-and-land package with a separate build contract | No, different rules apply |
| Buying a completed apartment | No, nothing left to deduct |
The property must be an apartment or townhouse in a strata subdivision (that is, with an owners corporation). Our buying off the plan guide explains the wider process, and the owners corporation page covers what strata living involves.
A worked example
For illustration only. You sign a contract for a $700,000 two-bedroom apartment in Preston at a point where the SRO accepts that $450,000 of the price relates to construction occurring after the contract date.
| Calculation | Without the concession | With the concession |
|---|---|---|
| Dutiable value | $700,000 | $250,000 |
| Duty formula | $2,870 + 6% of excess over $130,000 | $2,870 + 6% of excess over $130,000 |
| Duty payable | $37,070 | $10,070 |
| Saving | $27,000 |
The actual construction deduction depends on the developer's figures and the stage of the build, so treat this as a shape rather than a promise. Run your own scenario in the stamp duty calculator and confirm the deduction with the developer's conveyancer.
First home buyers may not need it
If you are a first home buyer purchasing at $600,000 or less to live in, you already pay no duty under the standard exemption, and between $600,001 and $750,000 you get a sliding concession. Where both apply, the SRO calculates which treatment gives the better result. For a $580,000 apartment, the deadline is irrelevant to you. Read our stamp duty exemptions and concessions page for the full picture.
The deadline is about the contract date
Based on the rules as we understand them, what matters is that you enter into an eligible contract of sale on or before 20 October 2026. Settlement can happen after that date, which is normal for off-the-plan purchases that may not complete for a year or more. Two practical implications:
- A contract signed on 25 October 2026 gets no concession, even if the building is at the same stage.
- A contract exchanged in September 2026 for an apartment settling in 2028 keeps the concession.
Check the current rules with the State Revenue Office before you rely on this, as the government can change the mechanics at any time.
Should you rush to sign before 20 October?
A stamp duty saving of $20,000 to $30,000 is real money, but it is not a reason to buy the wrong property. Ask yourself:
- Would I buy this apartment at this price if the concession did not exist?
- Have I had the contract and Section 32 reviewed by a conveyancer? Off-the-plan contracts often contain sunset clauses and variation clauses that favour the developer.
- Will I be able to get finance when the building completes, possibly two years from now?
That last point is the one buyers underestimate. Lenders will not give a formal approval today for a settlement in 2028, so you are exposed to changes in your income, interest rates and the valuation. If the completed apartment values below the contract price, you need to cover the difference in cash. Our contract of sale page and subject to finance clause page explain why off-the-plan contracts are rarely conditional on finance.
Investors: run the whole-of-life numbers
Investors are eligible for the concession, which makes off-the-plan apartments look cheaper up front. Remember that Victoria's land tax now starts at $50,000 in site value for investment property, that the absentee owner surcharge is 4% if you live overseas, and that vacant residential land tax applies state-wide. Model the full holding cost in the investment property cashflow calculator and talk to us about investment property loans before you commit.
Preparing your finance now
- Get a current pre-approval so you know your ceiling and can move on a contract quickly.
- Keep a deposit buffer beyond the 10% the developer asks for, because valuations at completion can come in short.
- If settlement is more than a year away, plan to renew your pre-approval and keep your finances tidy in the meantime.
Frequently asked questions
When does the off-the-plan stamp duty concession end in Victoria?
The temporary off-the-plan concession for apartments and townhouses ends on 20 October 2026. Contracts entered into on or before that date can use it, subject to meeting the eligibility rules. Contracts signed after that date fall back to the ordinary duty rules or, for eligible first home buyers, the standard exemption and concession thresholds.
Do investors get the off-the-plan concession?
Yes. Unlike the earlier version of the concession, the temporary scheme is open to all buyers including investors and people who already own a home. The property still needs to be an apartment or townhouse in a strata subdivision, and the contract needs to be signed on or before 20 October 2026.
How is the concession calculated?
Duty is assessed on the contract price minus the construction costs incurred after the contract date, as calculated by the developer. Signing early in the build, when little construction has happened, gives the largest reduction. The developer's conveyancer provides the figures and the State Revenue Office assesses the final duty.
Can I still get a home loan for an apartment that settles in 2028?
Yes, but the formal loan approval happens closer to settlement, usually within three months of completion. You can get a pre-approval now to understand your capacity, and you should keep your deposit, income and credit position stable throughout the build so the final approval is straightforward.
Talk to GNT Finance
If you are weighing up an off-the-plan contract before 20 October, GNT Finance can pre-approve you quickly and stress-test the numbers for settlement in a year or two. Book a free consultation or call Gorakh Timilsina on 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.