When a purchaser buys off the plan, the contract is entered into before construction or refurbishment is complete. Duty is usually calculated on the property's dutiable value, generally the higher of the price paid and market value. If an off-the-plan concession applies, qualifying construction or refurbishment costs incurred after the contract date may be excluded from the dutiable value, reducing the duty payable.
Victoria has both an existing off-the-plan concession and a temporary concession for qualifying residential apartments and townhouses in strata subdivisions with common property. The temporary concession applies to eligible contracts entered into on or after 21 October 2024 and before 21 April 2027. It is not limited to first home buyers or owner-occupiers, and may be available to investors, companies and trusts, subject to the detailed rules. It does not apply to every house-and-land package, and it does not reduce foreign purchaser additional duty.
For benefits that require the purchaser to live in the property, the required occupation conditions must be met. The temporary concession has different criteria from the existing concession, so the contract date and property type are important. The State Revenue Office generally assesses the claim through the Digital Duties Form using information supplied by the parties.
This is the kind of matter CMK Legal's property and conveyancing team handles.
Do not assume that every off-the-plan contract receives the same concession. Confirm the contract date, whether the property is within a qualifying subdivision, the construction-cost calculation and whether any separate first home buyer or principal residence requirements apply.
Law referenced: *Duties Act 2000* (Vic). Current official guidance: https://www.sro.vic.gov.au/buying-property/land-transfer-stamp-duty/concessions-exemptions-and-waivers/plan-duty-concession-0/strata-apartments-and-townhouses-temporary-concession