Navigating Duty Concessions for Multi-Lot Developments in Melbourne

Melbourne continues to grow as one of Australia’s most active property markets. Developers and buyers are drawn to multi-lot projects, whether they involve townhouses, apartments, or mixed-use estates. A key part of making these projects financially viable is understanding duty concessions. For both investors and first-home buyers, knowing how concessions apply can mean big savings.

What Are Duty Concessions?

Duty concessions reduce the amount of stamp duty a buyer needs to pay. In Victoria, stamp duty can be a significant upfront cost when purchasing property. The government offers concessions in certain cases to encourage affordability and support new housing supply.

Common types of concessions:

• First-home buyer duty concession
• Off the plan duty concession
• Principal place of residence concession

For multi-lot developments, these concessions can apply differently depending on the buyer’s situation and the project’s structure.

How Duty Concessions Work in Multi-Lot Projects

Multi-lot developments often involve multiple contracts of sale. Each contract may qualify separately for concessions. This creates opportunities for savings, but also adds complexity.

Key points for buyers to note:

• Off the plan concession applies to the land and construction value at the contract date, not the final property value
• First-home buyers may qualify for further reductions or exemptions
• Principal place of residence concessions apply if you intend to live in the property

The Role of Off the Plan Concessions

For buyers entering off the plan developments in Melbourne, the off the plan duty concession can significantly reduce costs. The dutiable value is based on the land plus any construction completed at the time of signing. If little construction has started, the dutiable value is lower. This makes early purchases in multi-lot projects more affordable.

Example:

• Contract signed before construction = lower duty
• Contract signed after completion = higher duty

Why Multi-Lot Developments Benefit Buyers

Multi-lot projects usually offer staged releases. Early buyers can take advantage of lower prices, greater choice, and better access to duty concessions. Developers also benefit by selling faster, which helps fund later stages of construction.

Advantages for buyers include:

• Reduced upfront costs through duty concessions
• Potential for capital growth by settlement
• Modern, energy-efficient homes
• Options across different lots and designs

How Coposit Makes It Easier

Saving for stamp duty and deposits can be tough, especially for first-home buyers in Melbourne. Coposit helps by lowering the barrier to entry. With just $10k upfront and the balance paid in weekly instalments during construction, buyers can secure property in multi-lot developments without waiting years to save. This gives buyers access to duty concessions earlier, while locking in today’s prices.

Duty Concessions in Melbourne Multi-Lot Developments

Understanding duty concessions is essential for buyers in Melbourne’s multi-lot developments. Off the plan concessions, first-home buyer discounts, and principal place of residence reductions can save thousands. With Coposit, entering these projects becomes even more achievable. Buyers can secure property, access duty savings, and position themselves for long-term growth in Melbourne’s competitive property market.