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Victoria Stamp Duty Concessions 2026: Off-the-Plan Changes and Deadlines

Victoria’s Stamp Duty Landscape in 2026

Stamp duty — officially called land transfer duty in Victoria — is one of the biggest upfront costs when buying a home. For Melbourne and Victorian buyers, understanding the concessions and exemptions available in 2026 can mean saving tens of thousands of dollars. There are two key schemes to know: the first home buyer duty exemption and concession, and the expanded off-the-plan duty concession, which expires on 20 October 2026.

Whether you’re buying your first home or investing in a new apartment, getting your timing right could be the difference between paying full stamp duty and paying nothing at all.

First Home Buyer Stamp Duty: The $600k and $750k Thresholds

Victoria’s first home buyer duty exemption and concession applies to eligible buyers purchasing a property they intend to live in as their principal place of residence. The thresholds are straightforward but critical:

Full Exemption — Properties Up to $600,000

If your purchase price is $600,000 or less, you pay zero stamp duty as a first home buyer. This is a full exemption, saving you approximately $31,000 compared to the duty an investor or non-first-home buyer would pay on the same property.

Finding a suitable property under $600,000 in metropolitan Melbourne requires looking at growth corridors (Melton, Werribee, Wallan) and older unit stock in suburbs like Footscray, Essendon or Carnegie. The savings are substantial and worth factoring into your property search strategy.

Concession Zone — Properties Between $600,001 and $750,000

Once the purchase price crosses $600,000, you don’t lose the benefit entirely. Instead, the concession reduces on a sliding scale up to $750,000. At $605,000 you pay a small amount; at $700,000 the discount is significant but reduced; at $745,000 the concession is minimal but still applies.

The critical point: if your purchase price is $750,001 or above, the first home buyer concession disappears completely and full standard duty applies. This is often called the “cliff edge” — crossing it costs you the entire benefit in one step.

Above $750,000

Standard land transfer duty rates apply from $750,001 onwards, without any first home buyer concession. If you’re buying in this range, the off-the-plan concession (see below) may still be available to you and could significantly reduce your duty liability.

Before bidding at auction, always know your exact “landed cost” including duty. If an agent is pushing you from $748,000 to $752,000, they are effectively spending your stamp duty savings — not yours. A good home loan broker or conveyancer can help you model the true cost at different price points.

The Off-the-Plan Duty Concession: Extended to October 2026

One of the most significant changes in Victoria’s stamp duty framework is the expanded temporary off-the-plan duty concession. Following the passage of the State Taxation Acts Amendment Act 2025, the Victorian Government extended this concession for a further 12 months to 20 October 2026.

How the Off-the-Plan Concession Works

When you buy off the plan (before construction is complete), stamp duty is calculated on the dutiable value — which is the contract price minus the construction costs remaining at the date of contract. This can dramatically reduce the amount of duty you pay.

For example: if you purchase an apartment off the plan for $620,000 and the vendor advises that $465,000 of the contract price will be spent on construction, your dutiable value is only $155,000 ($620,000 – $465,000). Duty is assessed on $155,000, not $620,000.

The Temporary Extended Concession (21 October 2024 to 20 October 2026)

For contracts signed between 21 October 2024 and 20 October 2026, the Victorian Government introduced a broader temporary concession that:

Is available to all purchasers — not just first home buyers or owner-occupiers. Investors, companies and trusts qualify.
Has no property value threshold — available for apartments, units and townhouses of any value.
Allows a 100% deduction of outstanding construction and refurbishment costs when determining dutiable value.
Applies to properties in a strata subdivision with common property (apartments, units, townhouses) — not to standalone house and land packages that are not part of a strata subdivision.

For buyers of new Melbourne apartments and townhouses, this concession can save between $20,000 and $40,000 in stamp duty. Combined with the first home buyer exemption for those eligible, the total saving can be even greater.

How First Home Buyers Combine Both Benefits

If you’re a first home buyer purchasing an off-the-plan apartment or townhouse, you may be eligible to combine both the off-the-plan concession and the first home buyer duty exemption. The off-the-plan concession reduces the dutiable value first; then the first home buyer thresholds apply to that lower figure.

For instance: a first home buyer signs a contract on a $750,000 apartment off the plan. The vendor advises $420,000 will be spent on construction. The dutiable value after the off-the-plan concession is $330,000 — well under the $600,000 threshold. Result: zero stamp duty, despite a $750,000 purchase price. You can also check your eligibility for the Victorian First Home Owner Grant for new home purchases under $750,000.

If you’re planning to understand stamp duty exemptions across all states, it’s worth comparing these figures against what you’d pay elsewhere.

What’s Changing After October 2026?

Unless the Victorian Government announces a further extension, the temporary expanded off-the-plan concession will expire on 20 October 2026. After this date:

The broader concession for all buyers (including investors) reverts to the pre-October 2024 rules
The standard off-the-plan concession for first home buyers and owner-occupiers will continue
First home buyer thresholds ($600k exemption, $750k concession) remain in place as they are not temporary measures

For buyers considering an off-the-plan apartment or townhouse purchase for any purpose — not just as a first home — the window to benefit from the expanded concession closes in October 2026. Signing a contract before that date locks in the benefit, even if settlement occurs later.

How to Claim the Victorian Stamp Duty Concession

For first home buyers, the duty exemption or concession is claimed at settlement through your conveyancer. You’ll complete a First Home Buyer Duty Exemption, Concession or Reduction form (available from the State Revenue Office of Victoria). Your conveyancer will calculate the duty payable based on your circumstances and apply the correct concession.

For the off-the-plan concession, your contract of sale will typically include a vendor statement about the value of construction works. This forms the basis for calculating your dutiable value. Ensure your legal representative reviews this statement carefully.

If you’re also eligible for the Victorian First Home Owner Grant (for new homes under $750,000), that can be applied through your lender at settlement. Make sure your home loan preparation includes a review of all grants and concessions you may be entitled to.

Melbourne Market Context

Melbourne’s property market is recovering momentum in 2026, with renewed buyer interest in inner and middle-ring apartments following the interest rate environment. The combination of the off-the-plan concession and first home buyer exemptions makes new apartments and townhouses particularly attractive for buyers who can navigate the current landscape.

Working with an experienced mortgage broker helps you understand not just the loan structure, but the complete cost picture — including what you save on stamp duty and how that affects your deposit requirements and borrowing needs. Explore your home loan options alongside your duty savings to get the full picture.

Frequently Asked Questions

Do I still get the first home buyer exemption if I buy off the plan and the price is above $600,000?

Yes, potentially. With off-the-plan purchases, stamp duty is assessed on the dutiable value (contract price minus remaining construction costs), not the full purchase price. If the dutiable value falls below $600,000 after applying the off-the-plan concession, you qualify for the full exemption — even if the purchase price exceeds $600,000.

Can investors access the off-the-plan concession in Victoria?

Yes, under the temporary extended concession for contracts signed between 21 October 2024 and 20 October 2026, investors, companies and trusts are eligible — not just first home buyers or owner-occupiers. The property must be an apartment, unit or townhouse in a strata subdivision. This expanded eligibility expires in October 2026.

What is the cliff edge at $750,000 for first home buyers?

The first home buyer duty concession applies on a sliding scale between $600,001 and $750,000. At exactly $750,000 you still receive a (reduced) concession. But at $750,001 and above, no first home buyer concession applies and you pay full standard duty rates. The difference in total cost between $750,000 and $751,000 can be tens of thousands of dollars.

Does the Victorian off-the-plan concession apply to house and land packages?

The temporary extended concession (October 2024 – October 2026) applies only to properties in a strata subdivision — apartments, units and townhouses. House and land packages in non-strata subdivisions are not eligible for the expanded temporary concession, though the existing concession for first home buyers and owner-occupiers may still apply in some circumstances.

Make the Most of Victorian Stamp Duty Savings

Victorian stamp duty concessions in 2026 represent a genuine opportunity — but only if you act before the deadlines. Whether you’re a first home buyer seeking the $600k exemption, or any buyer looking to benefit from the off-the-plan concession before it narrows in October 2026, the time to plan is now. At Lagos Financial, we help Victorian buyers understand the full cost picture and structure their loans to maximise every available benefit. Book a complimentary assessment and let’s make sure you’re not paying a cent more in stamp duty than you need to.

Lagos Financial helps clients as a mortgage broker in Melbourne and across Australia.