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How Off-the-Plan Concessions Help Families Buy Homes in Melbourne

By Coposit
21/04/2025

In Melbourne, the Victorian Government has introduced significant stamp duty concessions for off-the-plan apartments, townhouses, and units. These measures aim to make homeownership more accessible, especially for families seeking affordable housing options in a competitive market.

What Are Off-the-Plan Concessions?

Off-the-plan concessions allow buyers to pay reduced stamp duty by deducting construction costs incurred after the contract date from the property's purchase price. This results in a lower "dutiable value," upon which stamp duty is calculated. For instance, purchasing a $620,000 apartment with $465,000 allocated for construction could reduce the dutiable value to $155,000, significantly lowering the stamp duty owed.

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Benefits for Families

  1. Reduced Upfront Costs: The concessions can lead to substantial savings. For example, a family buying a $620,000 off-the-plan apartment could save approximately $28,000 in stamp duty, paying only around $4,000 instead of $32,000.
  2. State Revenue Office

Increased Housing Supply: By making off-the-plan properties more affordable, these concessions encourage developers to build more homes, increasing the availability of housing options for families.

  1. Access to Newer, Energy-Efficient Homes: Off-the-plan properties often feature modern designs and energy-efficient technologies, offering families comfortable and sustainable living environments.
Coposit | Buy with $10K | Off the plan Melbourne

Temporary Concession Period

The expanded off-the-plan stamp duty concession is available for contracts signed between 21 October 2024 and 21 October 2025. During this period, there are no price caps, and the concession applies to all buyers, including first home buyers, owner-occupiers, investors, and foreign purchasers, provided the property is part of a strata subdivision .

Coposit | Buy with $10K | Off the plan Melbourne

Considerations for Families

  • Eligibility Requirements: To qualify for the concession, at least one buyer must use the property as their principal place of residence for a continuous period of 12 months, starting within 12 months of possession.
  • Property Type: The concession applies only to apartments, units, or townhouses in a strata subdivision. House and land packages or other dwellings not part of a strata subdivision are not eligible for the extended concession .
  • Financial Planning: Families should consider their long-term financial commitments, including mortgage repayments and potential changes in interest rates, when purchasing off-the-plan properties.
Coposit | Buy with $10K | Off the plan Melbourne

Final Thoughts

The Victorian Government's off-the-plan stamp duty concessions provide a valuable opportunity for families to enter the housing market with reduced upfront costs. By understanding the eligibility criteria and benefits, families can make informed decisions that align with their financial goals and housing needs.

Coposit | Buy with $10K | Off the plan Melbourne

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