Victoria Off-the-Plan Stamp Duty Concession 2026-27: Who Qualifies and What You Could Save

Why this concession matters now

Victoria's off-the-plan stamp duty concession is back in the spotlight because the Victorian Government announced in the 2026-27 State Budget that the temporary concession would be extended to 21 April 2027, pending legislation.

For some apartment and townhouse buyers, the saving can be meaningful. It can reduce the dutiable value of the purchase by excluding eligible construction or refurbishment costs that occur after the contract date. Lower dutiable value means lower land transfer duty.

That is the appeal. The catch is that the saving depends on the property, the timing of the contract, how much construction remains and the calculation method used. It is not a flat discount and it is not the same for every buyer.

This guide explains the concession in buyer language, with examples and the checks to make before you rely on it.

What is an off-the-plan purchase?

Buying off the plan means signing a contract before construction or refurbishment is finished. You might be buying:

• A new apartment.
• A townhouse in a low-rise development.
• A house and land package.
• A refurbished lot, such as a warehouse or office conversion.
• A lot in a new subdivision.

The key point is that the contract is signed before the property is complete. The duty concession recognises that part of the contract price relates to building work still to be done after you sign.

How the Victorian duty concession works

In Victoria, land transfer duty is usually calculated on the dutiable value of the property. With an off-the-plan concession, eligible construction or refurbishment costs after the contract date can reduce the dutiable value.

Simple version:

1. Start with the contract price.
2. Identify the eligible post-contract construction or refurbishment cost.
3. Deduct that eligible amount from the contract price.
4. Calculate duty on the reduced dutiable value.

The vendor is heavily involved because they provide the construction cost information through the Digital Duties Form. The State Revenue Office says there are two methods of calculating the concession: the fixed percentage method and the alternative method. The vendor chooses the method and provides the required information.

That means buyers should ask for the expected concession amount early. Do not assume the marketing brochure's saving is final.

What changed in the 2026-27 Victorian Budget

The State Revenue Office says that, as part of the 2026-27 Victorian State Budget announced on 5 May 2026, the Victorian Government extended the temporary off-the-plan duty concession to 21 April 2027, pending legislation.

This matters because earlier guidance referred to the temporary concession ending on 20 October 2026. Buyers considering contracts in late 2026 or early 2027 should check whether the extension has passed into law before relying on it.

The words "pending legislation" are important. Budget announcements can be clear policy, but the legal detail comes through legislation. If you are signing a contract close to the old or new end date, get written advice from your conveyancer or solicitor.

Who may qualify

Based on SRO Victoria guidance, the concession can apply to eligible off-the-plan purchases such as:

• Land and building packages.
• Lots in high-rise or low-rise developments, including apartments and townhouses.
• Refurbished lots where the contract is signed before the refurbishment is complete.

Temporary concession settings can change, and eligibility can depend on contract date, property type and how the transaction is structured. Foreign purchaser additional duty, absentee owner rules and other surcharges are separate issues and should be checked independently.

If you are a first home buyer, you may also have separate first home buyer duty concessions or grants to consider. These are not the same as the off-the-plan concession, but they can affect your total upfront cost.

Use the VIC Stamp Duty Calculator as a starting point, then confirm the off-the-plan treatment with your conveyancer.

Worked examples

These examples are simplified. They show the idea, not a substitute for a formal duty assessment.

Example 1: $700,000 apartment, early construction stage

Contract price: $700,000

Eligible post-contract construction cost: $280,000

Estimated dutiable value after concession: $420,000

The buyer does not pay duty as if the full $700,000 were dutiable. Duty is calculated on the lower dutiable value, subject to the final SRO rules and vendor information.

This is where off-the-plan purchases can produce large savings. The earlier the project stage, the larger the remaining construction component may be.

Example 2: $850,000 townhouse, later construction stage

Contract price: $850,000

Eligible post-contract construction cost: $120,000

Estimated dutiable value after concession: $730,000

The concession still helps, but the saving is smaller because less construction remains after contract signing.

Example 3: $1,050,000 apartment, near completion

Contract price: $1,050,000

Eligible post-contract construction cost: $50,000

Estimated dutiable value after concession: $1,000,000

The buyer may still get a reduction, but it may not be enough to make the deal attractive if the apartment is priced at a premium or if valuation risk is high.

Why two buyers can get different savings

Two buyers can purchase similar apartments in the same building and get different duty outcomes because:

• One signs earlier, when more construction remains.
• One signs after the building is almost complete.
• The vendor uses different calculation inputs.
• The properties have different lot values or construction allocations.
• One buyer also qualifies for first home buyer concessions.
• One buyer is affected by a surcharge or different buyer category.

This is why "save up to" claims need care. Ask for the actual estimated dutiable value and duty calculation for your contract, not just the headline saving.

Questions to ask before signing

Ask the agent, vendor and your conveyancer:

1. Is the property eligible for the off-the-plan concession?
2. What contract date rules apply?
3. Has the 2026-27 extension been legislated for this contract date?
4. Which calculation method will the vendor use?
5. What is the estimated dutiable value after the concession?
6. What documents will be provided through the Digital Duties Form?
7. Does the estimate include or exclude any first home buyer concession?
8. Are any foreign purchaser or absentee owner surcharges relevant?
9. What happens if settlement is delayed?
10. What happens if the bank valuation comes in below the contract price?

If the answer is vague, slow down. Duty is often one of the largest cash costs in a Victorian purchase.

The risks with off-the-plan purchases

The duty saving is only one part of the deal.

Valuation shortfall. If the bank values the completed property below the contract price, you may need extra cash at settlement.

Settlement delay. Construction can take longer than expected. Your finance approval, income and personal circumstances may change before settlement.

Market risk. If prices fall between signing and settlement, you are still contracted at the original price.

Defect and quality risk. New does not always mean problem-free. Review the developer, builder, plans, inclusions and warranty position.

Sunset clause risk. Understand when either party can end the contract if the project is delayed.

Strata cost risk. New apartment and townhouse buyers should check owners corporation budgets, proposed levies, embedded networks and maintenance assumptions.

The concession can improve the numbers, but it should not be the only reason to buy.

First home buyers in Victoria

First home buyers should check three separate buckets:

• First home buyer duty exemption or concession.
• First Home Owner Grant for eligible new homes.
• Off-the-plan duty concession.

These rules interact, but they are not the same thing. A first home buyer looking at a new apartment or townhouse should model all three before deciding whether an off-the-plan property is better than an established property.

For some buyers, the off-the-plan duty concession plus first home support can make a new townhouse competitive. For others, an established unit at a lower price may still be the better buy.

Bottom line

Victoria's off-the-plan stamp duty concession can be valuable, especially for buyers signing while a substantial amount of construction remains. The 2026-27 Budget extension to 21 April 2027 gives the concession a longer runway, subject to legislation.

But the saving is deal-specific. It depends on timing, construction cost allocation, contract structure and buyer eligibility. Treat it as a number to verify, not a slogan.

Before you sign, run a base duty estimate through the VIC Stamp Duty Calculator, estimate total cash with the Property Purchase Cost Calculator, then ask your conveyancer to confirm the concession treatment against the actual contract.

Sources: State Revenue Office Victoria guidance on the off-the-plan duty concession; SRO Victoria Digital Duties Form guidance; Victorian 2026-27 State Budget announcement as referenced by SRO Victoria. This article is general information, not legal or tax advice.