Off-the-plan Stamp Duty Concessions

By Elisa Keith
14 January 2025
The Duties Amendment (More Homes) Act 2024 is an Act which came into operation on 20 November 2024 to amend the Duties Act 2000. The effect of the amendment is the introduction of a temporary stamp duty concession which applies to off-the-plan purchases within strata subdivisions. In order to be eligible for this concession, the below must apply;
1. The property must be within a strata subdivision that has common property;
2. The property is an ‘off-the-plan property’, meaning that it is a new build which has not received an occupancy permit;
3. The contract is signed after 21 October 2024 and before 21 October 2025 (It does not matter if the property does not settle during this period).
Essentially, this new concession means that rather than paying stamp duty on the purchase price of the property, an eligible purchaser will be paying stamp duty on the purchase price of the property minus the construction costs incurred after the day of signing the contract. It is available to all types of purchasers, including companies, trustees of trusts, and investors.
Unfortunately, neither the Duties Act nor the amending Act include a definition of ‘construction costs’.
There have also been important changes which came into effect on 1 January 2025 in respect to Vacant Residential Land Tax (VRLT). As of 1 January, VRLT will apply to vacant residential properties across all of Victoria, and the amount charged will be increase based on the consecutive years that a property remains vacant.
If you think that you may want to take advantage of the off-the-plan temporary stamp duty concession while it is available, or if you would like to discuss your options in respect to Land Tax, please get in touch with our property and development lawyers to discuss your eligibility.
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