Victoria Stamp-Duty Cut | Save Thousands on Off-the-Plan Homes

Buy an off-the-plan unit before 30 June 2026 and you'll pay virtually zero stamp duty – an average $25,000 saving – thanks to Labor's 12-month extension of the OTP concession.

What the 12-month extension covers

Victorian Budget 2025/26 delivers a substantial $61 million injection to maintain the 100% stamp-duty concession for all off-the-plan apartments, units and townhouses until 30 June 2026. This extension provides crucial certainty for developers and buyers navigating a challenging property market while supporting the state's housing supply objectives.

The concession applies statewide with no construction-progress restrictions and can be combined with existing first-home buyer exemptions for properties under $600,000. The policy is specifically designed to stimulate 8,000 additional presales and revive stalled development projects across Melbourne's CBD and growth corridors.

Eligibility and application process

The extension maintains simplified eligibility criteria with no percentage-of-completion requirements that previously complicated claims. Any off-the-plan purchase contracted before the June 2026 deadline qualifies regardless of construction stage at settlement, removing administrative barriers for buyers and developers.

• All dwelling types: Apartments, units, townhouses, and attached dwellings included
• No progress restrictions: Construction stage irrelevant at settlement time
• Automatic application: Concession applied at settlement through conveyancer or solicitor
• Contract date matters: Purchase agreement must be signed before 30 June 2026

Savings by price and property type

The financial impact of the stamp-duty concession varies significantly by property value and buyer circumstances. For a $620,000 apartment, the duty bill drops from approximately $32,000 to around $4,000 – delivering a substantial $28,000 saving that can fund deposits, moving costs, or furniture purchases.

Median two-bedroom CBD units valued at $565,000 fall completely within the concession threshold, reducing stamp duty from $29,200 to zero, with buyers paying only the mandatory $1,351 transfer fee. Treasury costings indicate the average saving across all eligible sales reaches $25,000, providing meaningful cost-of-living relief for property purchasers.

Key savings examples

The stamp duty extension delivers varying savings levels across different property types and price points, with the most significant benefits for apartments and off-the-plan purchases in the $500,000-$750,000 range.

• $620k apartment: $28,000 saving with duty dropping from ~$32,000 to ~$4,000 for apartments above first-home buyer thresholds
• CBD units: Zero duty paid with median $565k two-bed units paying only $1,351 transfer fee instead of $29,200 stamp duty
• Average $25,000 saving: Treasury costings show typical purchaser benefits from comprehensive duty relief
• Stackable concessions: First-home buyers can combine this with existing exemptions for maximum savings

Criticism from Liberals and Greens

Political opposition to the stamp-duty extension reflects broader disagreements about housing policy effectiveness and targeting. The Liberals characterise the measure as a 'developer-only subsidy' that inflates property prices rather than delivering genuine affordability relief, promising targeted $10,000 first-home grants as a superior alternative.

The Greens argue stamp-duty concessions artificially inflate land values and encourage speculative purchasing, advocating for revenue diversion to public build-to-rent programs that would deliver permanent affordable housing. The Property Council supports the extension but warns of a 'cliff effect' in July 2026 if no long-term stamp duty reform framework is implemented.

Frequently Asked Questions

Victoria's stamp-duty concession extension represents a significant commitment to supporting the off-the-plan market during challenging economic conditions. While delivering substantial savings for eligible purchasers, the policy's ultimate success depends on translating presales into completed dwellings and addressing broader housing supply constraints through complementary planning and zoning reforms.

The debate over stamp duty reform reflects deeper tensions about housing policy priorities: immediate market support versus long-term structural reform, developer incentives versus buyer assistance, and temporary relief versus permanent affordability solutions. As the June 2026 deadline approaches, pressure will mount for comprehensive stamp duty reform addressing both off-the-plan and established property markets.