Off the Plan Stamp Duty Concession Extended to 2027

You're scrolling townhouses in Point Cook and Truganina and you keep seeing the same line in the ads. "Off the plan. Huge stamp duty savings."

Then someone tells you the deal ends in October. Someone else says it's been extended. You're not sure who to believe, or whether it even applies to you.

Here's what's actually happening.

The short version

Victoria has a temporary off the plan stamp duty concession for apartments, units and townhouses. It started on 21 October 2024 and was due to end on 20 October 2026.

In the May 2026 State Budget, the government extended it by six months. The law making that official received Royal Assent on 23 June 2026. It now covers contracts signed on or before 20 April 2027.

So if you've heard "it ends next month", that's out of date.

How the concession works

Normally, stamp duty is worked out on the full price you pay.

Under this concession, the construction and refurbishment costs still to be done when you sign can be deducted from the price before duty is calculated. The earlier in the build you buy, the bigger the deduction.

The Victorian Government's own example is a $620,000 apartment bought before construction starts. Duty drops from around $32,000 to around $4,000.

For now, it isn't limited to first home buyers. There are no price caps, and you don't have to live in it.

What qualifies, and what doesn't

This is where people trip up.

• It must be in a strata subdivision with common property. Think a shared driveway, shared hallway or common garden. Most apartments and many townhouse developments fit.
• House and land packages don't qualify for this temporary version. Neither does a standalone home on its own title.
• The contract date matters. It has to be signed on or before 20 April 2027.

If you're looking at a townhouse block in the west and you're not sure how it's subdivided, your conveyancer can check the plan of subdivision before you sign.

Not sure whether a place you're eyeing qualifies, or what duty you'd pay? Book a chat and we'll run it through with you.

How it fits with first home buyer duty

First home buyers already pay no duty up to $600,000, with a sliding concession up to $750,000.

The two can work together. The off the plan concession reduces the dutiable value first. Then the first home buyer thresholds apply to that lower number.

So a townhouse priced above $600,000 could end up with a dutiable value under it, if enough of the build is still to be done. Your conveyancer or the State Revenue Office works out the final figure.

The $10,000 First Home Owner Grant is separate. It's for new homes valued at $750,000 or less, and an off the plan townhouse can count as new.

The trade-offs with buying off the plan

A stamp duty saving is real money. It's not the only thing to think about.

• You're buying something that doesn't exist yet. You're relying on plans, finishes schedules and the developer.
• Settlement can be a long way off. A pre-approval lasts around three months, so your loan is assessed closer to completion.
• The valuation happens at the end. If the bank values the finished townhouse below your contract price, you may need to cover the gap.
• The 5% deposit scheme price cap still applies. Under the First Home Guarantee it's $950,000 in Melbourne, based on the purchase price.
• Sunset clauses and delays. Read what happens if the build runs late.

None of that means off the plan is a bad idea. It means the duty saving is one line in a bigger decision.

What happens after April 2027

Unless it's extended again, the concession goes back to its older rules. That version is limited to first home buyers, owner occupiers and eligible pensioners, with value thresholds.

This is general information, not advice about your situation. Duty depends on the exact contract.

We've helped over 100 first home buyers into the market, and we're rated 10/10 on Reviewr by over 100 customers. Book a chat and we'll show you what the duty, grant and loan look like on a real townhouse.

Let's get you into a home.

Figures verified 28 September 2026 against the State Revenue Office Victoria, vic.gov.au and Housing Australia.