Off-the-Plan Stamp Duty Concessions in Australia
State-by-state guide to stamp duty savings when buying apartments, units, and townhouses before construction is complete.
What Is an Off-the-Plan Purchase?
Buying off-the-plan means signing a contract to purchase a property before construction is finished — or before it has even started. You are committing to buy based on architectural plans, floor plans, and artist impressions rather than a completed building. The contract typically cannot settle until construction is complete, the building is certified for occupancy, and the individual lot titles are registered, which can take anywhere from one to three years.
For stamp duty purposes, this timing gap matters. When you sign the contract, much of the building does not yet exist. Several Australian states recognise this by calculating stamp duty on a reduced value — excluding construction that has not yet occurred — rather than the full contract price. The result is a lower duty bill, sometimes dramatically lower, compared to buying the same property after completion.
Not every off-the-plan purchase qualifies for a concession. Eligibility rules vary by state and typically depend on the property type (strata-titled apartments and townhouses usually qualify; standalone houses usually do not), the property value, and in some states, whether you plan to live in the property.
Which States Offer Off-the-Plan Concessions?
Six of Australia's eight states and territories offer some form of stamp duty benefit for off-the-plan purchases, but they vary enormously in how they work and who qualifies. The concessions fall into three categories:
Duty reduction
VIC, WA, TAS, and ACT reduce or eliminate the duty amount. This is a genuine saving — you pay less stamp duty.
Payment deferral
NSW lets you defer payment for up to 15 months. You pay the same amount of duty, just later.
No OTP concession
SA (expired 2018) and NT have no off-the-plan concession. Standard duty applies in full.
Victoria — Construction Cost Deduction
Victoria has the most generous off-the-plan concession in the country. It operates two parallel schemes: a temporary concession available to all buyers (including investors) and a standard concession for owner-occupiers and first home buyers.
Temporary concession (21 October 2024 — 20 October 2026)
Buyers can deduct 100% of construction costs incurred after the contract date from the dutiable value. Duty is then calculated on the reduced amount — typically the land value plus any construction already completed when you signed.
Who qualifies: Everyone — owner-occupiers, investors, companies, trusts, and foreign buyers. No residency requirement.
Property types: Lots in a strata subdivision with common property (apartments, units, townhouses with shared elements). Standalone houses on freehold land do not qualify.
Value cap: None. Applies to properties of any value.
Standard concession (ongoing, from 1 July 2023)
Available only to owner-occupiers eligible for the principal place of residence (PPR) concession or first home buyer exemption. Must be a natural person aged 18+. The reduced dutiable value (after deducting construction costs) must fall within threshold limits: $750,000 for first home buyers, $550,000 for other owner-occupiers. At least one purchaser must move in within 12 months and live there for at least 12 continuous months.
What this means in dollars
Apartment purchased off-the-plan in VIC for $620,000 with $465,000 in future construction costs
Duty drops from ~$32,000 to ~$4,000 — saving approximately $28,000
The dutiable value is reduced to $155,000 (contract price minus construction yet to occur). The earlier you sign relative to construction, the greater the deduction.
Try this scenario
Compare stamp duty on a $650,000 apartment in VIC bought off-the-plan vs after completion — see the construction cost deduction in action.
Calculate VIC off-the-plan savingsWestern Australia — Percentage Duty Reduction
Western Australia takes a different approach from Victoria. Instead of deducting construction costs from the dutiable value, WA applies a percentage reduction to the duty amount itself, capped at $50,000. The concession percentage depends on the property value and whether construction has started.
| Property value | Pre-construction | Under construction |
|---|---|---|
| $750,000 or less | 100% waived | 75% waived |
| $750,001 – $850,000 | Sliding 100% → 50% | Sliding 75% → 37.5% |
| $850,000+ | 50% (capped $50K) | 37.5% (capped $50K) |
Who qualifies: All purchasers — investors, owner-occupiers, first home buyers, foreign buyers. No residency or occupancy requirement.
Property types: Multi-tiered strata (apartments, units) from October 2019. Single-tiered strata and community title (townhouses, villas) from March 2025. Freehold house-and-land packages do not qualify.
Expiry: Contracts signed by 30 June 2026. The March 2026 WA budget proposed extending to June 2028 with higher thresholds ($800K full exemption, tapering above $900K) — pending parliamentary approval.
What this means in dollars
Pre-construction apartment in WA purchased for $630,000
100% concession applies — you pay $0 in stamp duty
At $630,000 (under the $750K threshold), the entire duty amount is waived for pre-construction contracts. The same apartment bought after completion would attract approximately $24,000 in duty.
Try this scenario
Compare WA stamp duty on a $700,000 apartment bought pre-construction vs after completion.
Calculate WA off-the-plan savingsACT — Full Duty Exemption
The Australian Capital Territory offers a straightforward full exemption from conveyance duty on eligible off-the-plan unit purchases. If your property is valued at or below the threshold, you pay zero stamp duty.
2025-26 threshold: $1,020,000 or less = nil duty. This threshold is indexed annually to Canberra CPI and has risen steadily — from $500,000 in 2021-22 to over $1 million today.
Who qualifies: Owner-occupiers only. At least one buyer must live in the home continuously for at least one year, commencing within 12 months of settlement.
Property types: Unit-titled properties only (apartments, townhouses). Standalone houses are not eligible.
Application: Self-assessed using concession code 405 on the Buyer Verification Declaration before title registration. Records must be kept for 5 years.
What this means in dollars
Off-the-plan unit in Canberra purchased for $800,000
Full exemption — you pay $0 in stamp duty
A standard buyer purchasing the same unit after completion would pay approximately $25,000+ in conveyance duty. The exemption applies because the value is below the $1,020,000 threshold.
Tasmania — 50% Duty Reduction
Tasmania offers a temporary 50% reduction in property transfer duty on eligible off-the-plan purchases. This is a flat halving of the duty amount — simpler to calculate than Victoria's construction cost deduction method.
Eligibility period: Agreements signed between 1 July 2024 and 30 June 2026. Transfer must occur before 30 June 2031.
Value cap: Dutiable value must be $750,000 or less.
Who qualifies: Natural persons aged 18+. At least one buyer must be an Australian citizen or permanent resident. No requirement to live in the property — investors can use this concession.
Property types: Dwellings in a strata scheme or conjoined with other dwellings, with no occupancy permit issued at the contract date (genuinely under construction or not yet started).
What this means in dollars
Off-the-plan apartment in TAS purchased for $600,000
Duty drops from $22,498 to $11,249 — saving $11,249
The 50% reduction applies to the full standard duty amount. For properties under $750,000, this is one of the most straightforward concessions in the country.
NSW — Payment Deferral (Not a Reduction)
NSW does not reduce the amount of stamp duty on off-the-plan purchases. Instead, it offers a deferral of payment — you get extra time to pay the full duty amount. This is a cash flow benefit, not a saving.
How it works: Duty payment can be deferred for up to 15 months from the contract date, or until completion/settlement — whichever comes first. Standard duty is normally due within 3 months of signing, so this provides up to 12 months of extra breathing room.
Who qualifies: Owner-occupiers only. At least one purchaser must be an Australian citizen or a permanent resident who has lived in Australia for 200+ days in the prior 12 months. Must move in within 12 months of settlement and live there for at least 12 continuous months.
Investors: Do not qualify for the deferral. Standard payment timing applies.
QLD, SA & NT — No Dedicated OTP Concession
These three jurisdictions do not have a specific concession that reduces stamp duty based on the off-the-plan nature of the purchase. However, that does not mean off-the-plan buyers pay full duty in every case.
Queensland
No construction cost deduction or OTP percentage reduction exists. However, first home buyers purchasing a new home (including off-the-plan) receive full transfer duty exemption with no value cap for contracts signed from 1 May 2025. This is one of the most generous first home buyer concessions in Australia. Owner-occupiers can also defer duty on off-the-plan purchases for up to 12 months.
South Australia
SA had an off-the-plan concession from 2016 to 30 June 2018, but it expired and has not been reinstated. First home buyers purchasing new apartments still receive full stamp duty relief with no value cap. From 25 March 2026, South Australians aged 60+ downsizing to a new home or off-the-plan apartment under $2 million also pay no stamp duty.
Northern Territory
The NT has no off-the-plan stamp duty concession. All OTP purchases attract standard duty on the full contract price. First home buyers may benefit from the HomeGrown Territory Grant ($50,000 for new homes, contracts before 30 September 2026) and the House and Land Package Exemption (full duty exemption for new house-and-land packages used as a principal residence) — but these apply to detached homes, not apartments.
Off-the-Plan Stamp Duty Calculator
Estimate your stamp duty savings on an off-the-plan purchase — compare the OTP concession amount to standard duty in VIC, WA, TAS, and ACT.
Combining Off-the-Plan with First Home Buyer Concessions
Whether you can "stack" an off-the-plan concession on top of a first home buyer concession depends on the state. Where stacking is allowed, the combined effect can be powerful — potentially reducing your stamp duty to zero even on a relatively expensive property.
VIC — Yes, full stacking
The OTP concession reduces the dutiable value first, then the FHB exemption or concession applies to the reduced amount. If the reduced value is under $600,000, a first home buyer pays zero duty. This means a first home buyer could purchase an off-the-plan apartment for $700,000+ and still pay no stamp duty, provided the construction cost deduction brings the dutiable value below $600,000.
WA — Yes, both apply
The OTP duty reduction and the First Home Owner Rate (FHOR) operate as separate schemes. First home buyers can access concessional duty rates under FHOR and then receive the OTP percentage reduction on top.
TAS — No, choose one
You must choose between the 50% OTP reduction and the first home buyer exemption. You cannot use both. For most properties under $750,000, the FHB exemption (zero duty) is more valuable than the 50% OTP reduction. The OTP concession becomes more relevant for non-FHB buyers.
ACT — Not needed
The OTP exemption already provides nil duty for properties up to $1,020,000. Since this threshold is higher than most apartment purchases in Canberra, stacking with the Home Buyer Concession Scheme is generally unnecessary.
Common Pitfalls with Off-the-Plan Purchases
Off-the-plan concessions can deliver significant savings, but OTP purchases come with risks that established property purchases do not. These are the most common issues buyers encounter.
Property value drops before settlement
Settlement can be one to three years after signing. If the market falls, your lender may value the property lower than the contract price at settlement. This creates a gap between what you owe and what the bank will lend — you need to find the shortfall from your own funds or risk losing the deposit.
Loan pre-approval expires or criteria change
Most loan pre-approvals last 3 to 6 months. If your off-the-plan settlement is two years away, your pre-approval will lapse multiple times. Interest rates, lending policies, and your personal financial situation can all change. Secure a new formal approval as settlement approaches.
Confusing a deferral with a reduction
NSW's OTP benefit is a payment deferral, not a duty reduction. The full duty amount is still payable — you just get more time. Buyers who budget based on the assumption that NSW has an OTP "concession" comparable to Victoria's can face a nasty surprise at settlement.
Failing to meet residency requirements
If you claimed a concession that requires you to live in the property (NSW deferral, ACT exemption, VIC standard concession) and you do not move in within the required timeframe, the concession is revoked. You will owe the full duty plus interest and potentially penalty tax.
Developer delays or insolvency
Construction delays are common in off-the-plan developments. While this usually does not affect your concession eligibility (which is assessed at the contract date), it extends the period of financial uncertainty. In the worst case, a developer may become insolvent, leaving your deposit at risk. Ensure your deposit is held in a statutory trust account, not an unprotected account.
Sunset clause termination
Most off-the-plan contracts include a sunset clause allowing the developer to terminate if settlement has not occurred by a specified date. If the developer terminates, you get your deposit back but lose the property — and the stamp duty concession. In a rising market, some developers have used sunset clauses to cancel contracts and resell at higher prices, though several states have now legislated to restrict this practice.
GST is included in the price
All new residential properties include 10% GST in the purchase price. Stamp duty is calculated on this GST-inclusive amount in every state. You cannot exclude the GST component from the dutiable value. Additionally, at settlement the purchaser must withhold a portion of the price (typically 1/11th) and remit it directly to the ATO on behalf of the developer — this is not an extra cost, but it affects your settlement cash flow.
State Comparison Table
This table summarises the off-the-plan stamp duty position in every state and territory as of the 2025-26 financial year. Use it to quickly compare what is available where you are buying.
| State | Concession type | Investors? | Value cap | Max saving | Expiry |
|---|---|---|---|---|---|
| VIC | Construction cost deduction | Yes (temporary) | No cap (temporary) | $28,000+ | 20 Oct 2026 |
| WA | Percentage duty reduction | Yes | $750K full / $850K partial | $50,000 | 30 Jun 2026 |
| ACT | Full duty exemption | No | $1,020,000 | $40,000+ | 30 Jun 2026 |
| TAS | 50% duty reduction | Yes | $750,000 | $14,000+ | 30 Jun 2026 |
| NSW | Payment deferral only | No | No cap (no reduction) | $0 (timing only) | Ongoing |
| QLD | FHB new home concession | No | No cap (FHB only) | $30,000+ | Ongoing |
| SA | FHB relief only | No | No cap (FHB only) | Varies | Ongoing |
| NT | No OTP concession | N/A | N/A | N/A | N/A |
Figures are indicative and based on current legislation. Temporary concessions may be extended, modified, or allowed to expire. Always verify with the relevant state revenue office before making purchasing decisions.
Frequently asked questions
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