The Victorian Government of Australia has announced a significant stamp duty concession for off-the-plan property purchases, with an aim to construct more houses in the state of Victoria.
The new change will reduce upfront costs, accelerate building projects, and enhance affordability across the board.
Victoria Premier Jacinta Allan unveiled the one-year stimulus at a new apartment complex in North Fitzroy.
Under the current system, first-home buyers and owner-occupiers are entitled to a stamp duty concession for off-the-plan purchases, with construction costs deductible from the sale price for tax calculations.
However, the benefit is capped at a post-deduction value of A$750,000 ($501,157) for first-home buyers and A$550,000 for owner-occupiers.
The new policy, designed to spur housing construction, extends the concession to all buyers of apartments, units, or townhouses off-the-plan, eliminating the previous value thresholds.
Effective yesterday (21 October) for a duration of 12 months, it permits a full deduction of remaining construction and refurbishment costs when assessing stamp duty liabilities.
The savings potential varies with the construction stage, but typically, an off-the-plan apartment buyer could pay roughly one-fourth of the stamp duty compared to without the latest concession.
Meanwhile, a Victorian purchasing a A$620,000 apartment before construction could see stamp duty costs plummet from approximately A$32,000 to roughly A$4,000, saving nearly A$28,000.
Allan said: “More apartments and townhouses getting built means more homes for young people and families to rent or buy."
Victoria's treasurer Tim Pallas added: “This will significantly reduce upfront costs - it’s a huge win for all buyers and builders.”
To qualify, the property must be part of a strata subdivision, which includes shared areas such as driveways or hallways.
Non-strata properties such as house and land packages remain ineligible for the new concession, though existing concessions for first-home buyers and owner-occupiers still apply.
This initiative responds to industry concerns regarding the impact of current interest rates on sales and project launches.
By reducing upfront costs for a broader buyer demographic, developers can anticipate increased presale activity, fulfilling financing prerequisites more swiftly and kick-starting construction sooner.
The concession complements other government efforts, including the construction of new social and affordable homes and the Suburban Rail Loop with its housing precincts.
