A new and temporary off the plan land transfer duty concession is available in Victoria.

The concession applies to the purchase of strata dwellings off the plan.

Contracts for apartments and townhouses purchased off the plan that are entered into from 21 October 2024 attract the concession, which is available for 12 months.

The new transfer duty concession will significantly reduce duty payable by eligible purchasers. For example, the duty payable on a $620,000 apartment will be reduced from $32,000 to $4,000.

Eligible purchasers will be able to deduct the construction costs incurred on or after the contract date from the dutiable value of the property. Land transfer duty will then be calculated on this reduced amount. Other concessions may also apply based on this reduced amount.

Eligibility

The concession is available to all purchasers, whether owner occupiers or investors, individuals, companies, and trusts. The purchaser is not required to also be eligible for either the principal place of residence duty concession, or the first home buyer duty exemption or concession.

Eligibility for the new transfer duty concession is assessed at the date the contract of sale is entered into, irrespective of whether settlement occurs before or after the end of the 12-month window during which the concession applies.

Contracts signed before the concession’s commencement date but settled during the 12-month window are not eligible.

How to apply

Applications are made through Duties Online by completing the Digital Duties Form.

For further information, including some useful examples of how the concession is calculated, see the Temporary off-the-plan duty concession page published by the State Revenue Office Victoria.

By Lawyers – Always up to date

The By Lawyers Purchase of Real Property (VIC) guide, including the Full Commentary and the Retainer Instructions precedent, has been updated.